The Best Car Loans for Tradies

How to choose the best car loans for tradies

If you’re a tradie and you’re looking to get a new car loan for a trade vehicle, it can be confusing trying to figure out what’s the best option for you. We want to make the car loan process as positive and stress-free as possible, and we’re happy to be with you every step of the way.

We understand that your tools are important – including your vehicle. Whether it's a ute or a van, we know your vehicle is essential for your work. We can help you find the right car loan option for you.

What will you use your vehicle for?

Have a think about the main usage you’ll have for your vehicle. Will it be getting around to customers and individual jobs, or are you thinking of using it mainly for leisure time?

If you need your car for more than 50 per cent business use, you should consider a chattel mortgage. You’ll own the vehicle from the moment you buy it, so there may be tax benefits if you work as a partnership or a sole trader.

What’s the best car loan for tradies who are self-employed?

Being self-employed can be stressful as the majority of the responsibility is on your shoulders. We understand this and can help you throughout the car loan process, taking the stress out of finding the right car loan for you.

One of the best car loans for tradies who are self-employed is a chattel mortgage. Some of the advantages of a chattel mortgage are that you can claim the total GST on your vehicle in your first BAS statement following its purchase*. You won’t have to claim GST over the entire term of the loan*.

You can also claim depreciation of the ute in your tax*. With a chattel mortgage, you may be able to get good balloon payment options as well as flexible loan terms.

What’s the best car loan for tradies who are employed by a business?

Depending on the nature of your employment (and you’ll need to read your contract carefully or speak to your managers), a novated lease could be a good option for you.

A novated lease is an agreement between you, your lender, and your employer – so they’ll be three parties involved.

With a novated lease, your employer takes on the responsibility of paying for your car loan from your pre-tax salary – this can have benefits for you as it reduces your taxable income. You can also include costs such as fuel and maintenance to further reduce your taxable income.

What’s the best option for you?

The best option for you will depend on your circumstances and the nature of your work. Have a think about what you use your vehicle for, whether you’re self-employed, a sole trader or employed by a company. Talk to your employers and figure out whether they offer a novated lease option.

If you need help figuring out the car loan process, have a look at our comprehensive process for all the information you need about getting car loans.

We have decades of experience working with people to find the best car loans for tradies. Speak to us today to benefit from our knowledge and our access to a wide range of lenders – saving you valuable time, money and extra stress we know you can do without.

Let us help you choose from the best car loans for tradies.

* Disclaimer: Please consult your accountant for eligibility on tax benefits, claiming GST on BAS and 100% finance.

Positive Lending Solutions or the Positive Group is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your unique circumstances.

Positive Lending Solutions or the Positive Group is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this website.