
Get Your Business on the Road
Get the vehicles your business needs with AFS Commercial Car Loans. Whether you’re expanding your fleet or upgrading your current vehicles, we offer flexible finance solutions tailored to your business.
With competitive rates and a quick approval process, you can keep your business moving forward, with confidence.
What is a Commercial Loan?
A Commercial Loan Contract and Mortgage (CLCM), often referred to as a Chattel Mortgage, is a commercial finance product where AFS will lend money to your business to purchase a car, commercial vehicle, or other transport asset.
Your business takes ownership of the vehicle (the chattel) at the time of purchase and AFS takes a mortgage over the vehicle as security for the loan by registering an interest on the Personal Property Securities Register (PPSR). Once the contract is paid in full, the interest is removed giving your business clear title to the vehicle.
A CLCM is suitable for those companies, partnerships and sole traders who use the cash method of accounting (they record business income and expenses as and when they occur) as it allows them to claim the GST in the vehicle's price up-front. GST is charged on the purchase price of the vehicle, but not the monthly rental or the contract balloon (final instalment). Where your business is registered for GST, you can claim some or all of the GST contained in the vehicle price as soon as you lodge your next BAS, rather than over the term of the loan. Under a CLCM, a business can claim the interest charges on the contract and depreciation up the depreciation limit as a tax deduction.

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Easy to Understand Features, Variables and Fees
Benefits of an AFS Commercial Loan
- Preserve Cash Flow: Preserves the existing cash and credit facilities of your business. Funds can be reinvested in the business or reserved for unexpected opportunities.
- Specific Asset Security: You do not have to provide additional business and/or personal assets as security.
- Finance Additional Costs: Other costs associated with the purchase can be financed on the contract such as comprehensive insurance, registration and on-road costs.
- Reduce Exposure: Ability to borrow less than the total invoice price of the goods by way of deposit.
- Fixed Cost Contract: A fixed rate and term make for accurate budgeting and also provides a hedge against market fluctuations.
- Flexibility: Structure loan repayments to match your business cash flow.
- Tax Treatment: The interest component of the payments and the depreciation on the goods are tax deductible if the asset is used to generate assessable income.
- GST: If the business is registered for GST, it can claim the GST charged on the vehicle price as an input tax credit when the next BAS return is lodged.
- Ownership: The vehicle is owned and registered by the borrowing entity.
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Frequently Asked Questions (FAQs)
A commercial vehicle loan is designed to help businesses acquire vehicles such as vans, utes, small trucks and cars. These loans allow businesses to purchase the vehicles they need, with repayment terms that are structured to fit their cash flow, ensuring smooth and efficient operations.
A balloon payment is a larger-than-usual, final payment made at the end of a vehicle-loan term. In a commercial vehicle loan, you may opt for lower monthly repayments by deferring a portion of the loan amount to a balloon payment. This means that while your regular repayments will be smaller throughout the loan term, you'll need to pay the remaining balance as a lump sum at the end of the loan. Balloon payments can help with cash flow during the loan but require careful planning for the final payment.
Once you’ve submitted your loan application, approval is conditional pending credit checks and verification of the information you have supplied. Approval is usually obtained within 48 hours, subject to satisfactory credit checks and verification of financial information. Your Loan Account Manager can provide more information about documenting your loan and the settlement process.
To ensure applying online is straight forward, we suggest you gather a few key documents so that you have the information at your fingertips.
Here is a checklist outlining all necessary information you should have at hand before applying.
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Your full name
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Your date of birth
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Your current driver's licence number and expiry date
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If you do not have a current driver's licence, then details of your passport including number, place of issue and expiry date.
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Your residential details, as listed below:
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Your current address details
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If you have not been living at your current address for at least 3 years, the details of your previous address
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If you have a mortgage, or have recently applied for a mortgage, the details of the monthly payments
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If you are renting or boarding, the details of your landlord/real estate agent including Name and Telephone Number.
Things you should know
1 All loans are subject to affordability, suitability and verification.
* Interest rate (Annual Percentage Rate/APR) is only applicable for new goods that have not been pre-owned, where the amount borrowed is between $35,000 and $130,000 and where the applicant owns or is buying a property and has an established good credit history. Finance subject to approval, including the application lending criteria. Terms and Conditions apply. Fees and Charges are payable. Interest rates vary depending on the applicant's credit score and associated credit risks. Credit provider is Automotive Financial Services Pty Ltd - Australian Credit Licence 383 762.
^ Comparison rate for AFS Loan Contract and Mortgage is calculated on a loan amount of $30,000 secured over a term of 5 years based on monthly repayments. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
** Seven year loan terms by request only.
- If you use a licenced finance broker to assist you in applying for credit, there may be other fees and charges payable, such as a finance broker fee or Origination Fee. AFS enables you to finance an Origination Fee as part of the amount of credit up to a maximum value of $990 including GST. An Origination Fee represents the finance broker's fee to provide credit assistance to you. It is a one off fee that is only payable if you proceed with the suggested credit contract. Under the National Credit Code, a Finance Broker is required to give you their Credit Guide, a Credit Quote and, at the same time as providing assistance to you, give you a Credit Proposal Disclosure document which will details all the fees and charges payable and if any commission will be received by the finance broker.