Utes, vans, trucks and fleets
Business ute, van, truck and car finance
Finance a work ute, a van, a tipper, a truck or a whole fleet, with the vehicle itself as the security.
Vehicle Finance at a glance
- Amount
- $10,000 to $500,000
- Term
- 12 to 60 months
- Security
- The vehicle, with the lender's security interest registered on the PPSR. A personal guarantee may be requested. No property security needed.
- Time to funding
- Dealer sales are quickest; private sales take longer while the seller is verified.
- Typical use
- A ute for a trade, a fleet of delivery vans, a truck and trailer unit, company cars, replacing an ageing fleet
- What you'll need
- The vehicle details and a quote or invoice, your NZBN or company number or trading details, photo ID, and recent bank statements
What it is
What is business vehicle finance?
Business vehicle finance is asset finance applied to something with a number plate. The vehicle secures the agreement, which keeps the rate below unsecured lending and lets the term stretch to several years. Three structures do most of the work: hire purchase, hire purchase with a balloon (a larger final payment), and an operating lease, where you rent the vehicle and hand it back. The lender registers its security interest on the PPSR.
The vehicle has to be used for the business. That is what makes it commercial finance rather than consumer car finance, and it is why the assessment reads your business and its bank statements rather than your payslips. GST and tax treatment differ between buying and leasing, and with how much private use there is, so ask your accountant before you choose.
Worked example
A worked example
- A plumbing business in Wellington buys a $40,000 ute (plus GST) from a dealer on hire purchase over 60 months with a $12,000 balloon.
- The balloon is due at the end of month 60, and the ute is the business's once it is paid.
- At the end of five years the business pays the balloon, refinances it, or trades the ute in and puts any equity into the replacement.
A final balloon lowers the monthly figure and raises the total cost. Set it at or below what the ute will genuinely be worth in five years.
Is this right for you?
Is business vehicle finance right for you?
Good fit if…
- The vehicle is used for the business and the business is trading.
- You want to keep your cash for wages and stock rather than sink it into a ute.
- You want a fixed monthly cost you can plan around.
- You are replacing a vehicle that is costing you more in downtime than a payment would.
Probably not if…
- The car is for private use. That is consumer finance, assessed on your personal income under different rules (the CCCFA).
- You are buying an unusual import or a written-off or statutory write-off vehicle. Most lenders will not touch it and the ones that do price it accordingly.
- You cannot cover the final payment and have no plan to refinance or sell.
- You need cash for something other than the vehicle. This money goes to the seller, not to you.
What it costs
What business vehicle finance costs
Vehicles price better than most equipment because the resale market is deep. Where you buy moves the rate as much as anything.
- Interest rate
- Rates are set by the lender for your deal, not by us, and depend on your trading, your credit file and the product. Vehicle finance generally prices below unsecured lending. New from a dealer prices sharpest, private sales price highest.
- Documentation fee
- A one-off documentation fee at the start of the agreement is common.
- Ongoing and end fees
- Hire purchase can carry a final fee with the last payment. An operating lease can carry excess kilometre and damage charges at hand-back.
- Paying it out early
- Most of these are fixed rate agreements, so an early settlement is a calculated figure rather than the remaining balance. Get a written settlement figure before you agree to trade the vehicle in.
Bizzloans is a commercial finance broker, not a lender. The lender that funds your deal pays us a commission, which we disclose to you. You pay us nothing to compare.
Eligibility
Who can apply
- A New Zealand business: limited company, sole trader, partnership or trust
- Photo ID (passport or NZ driver licence) for each director, partner, trustee or owner
- In business for at least 6 months
- Turnover of at least $6,000 a month
- Bad credit considered
- The vehicle must be used for the business
Don’t meet these? Talk to us. We have lenders for most situations, and we’ll tell you straight if we don’t.
Contact usWhat you'll need
What you’ll need
No documents
To get a quote
- Nothing. The vehicle, the price, whether it is new, used or private, and your turnover is enough.
- No credit file is pulled to compare.
Once you pick a lender
To settle
- The dealer invoice, or the seller's details on a private sale, showing the registration (plate) and VIN
- Your NZBN or company number, and photo ID and proof of address for each director
- Recent business bank statements
- Proof of insurance for the vehicle
- For private sales: a vehicle history and PPSR check, and the seller's bank details
How it works
How it works
Same day
Send the vehicle details
Make, model, year, kilometres, price, and whether it is coming from a dealer or a private seller. Those five things shape the pricing before anything else is assessed.
Once your details are in
We match lender to vehicle
Lenders have very different appetites for age, kilometres and private sales. We go to the ones whose criteria the vehicle fits, so you are not declined on the vehicle after being approved on the numbers.
Settle and collect
The lender pays the seller directly and confirms insurance. Then you collect the vehicle. Money never goes to a private seller before the checks clear.
This vs the alternative
Hire purchase vs hire purchase with a balloon vs operating lease
Three ways to finance the same ute. The monthly payments can look similar; the ownership and the GST treatment do not.
| Hire purchase | HP with a balloon | Operating lease | |
|---|---|---|---|
| Who owns the vehicle during the term | The lender, until the final payment. | The lender, until the final payment. | The lender. You rent it. |
| At the end | It is yours once the last payment and any fee are made. | It is yours once you pay the balloon. | You hand it back, subject to kilometres and condition. |
| Monthly payments | Higher, because there is little or no balloon. | Lower, because a slice is deferred to the end. | Often lowest, because you only pay for the depreciation you use. |
| GST | Treated as a purchase. | Treated as a purchase. | Charged on each rental. How much you can claim depends on business versus private use. |
| Who it suits | A business keeping the vehicle for the long run. | A business wanting ownership with lower monthly payments. | Fleets that cycle vehicles and want predictable costs. |
General information only. GST claims and depreciation on vehicles depend on the vehicle type and how it is used, and IRD rules change. Your accountant should confirm the treatment before you sign.
New, used or private sale: what actually changes
| New from a dealer | Used from a dealer | Private sale | |
|---|---|---|---|
| How fast | Fastest. Invoice in, agreement signed, vehicle collected. | Much the same, once the dealer issues the invoice. | Slower, while the lender verifies the seller and runs a PPSR check. |
| What the lender checks | Dealer invoice and VIN. | Invoice, VIN, kilometres, and sometimes an inspection. | PPSR search for outstanding finance, seller identity, seller bank account, often an independent inspection. |
| Watch out for | Delivery delays pushing settlement past the approval expiry. | Warranty and service history: the lender checks the security, not whether it is a good buy. | Never pay the seller yourself before the lender's checks clear. If you are being pushed to, stop. |
Age limits on the vehicle
Almost every lender works to an age-at-end-of-term rule rather than an age-today rule. A 7-year-old ute on a 5-year term is assessed as a 12-year-old ute.
- Cars, utes and vans have a maximum age at the end of the term, which varies by lender.
- Heavy trucks often run longer, because the working life is longer.
- An older vehicle usually means a shorter term, a higher rate, or both.
- Ex-rental, ex-fleet, written-off and imported vehicles are treated differently by every lender. Tell us up front.
FAQ
Vehicle Finance questions
Can I buy from a private seller?
What is a balloon or final payment?
How old can the vehicle be?
Can a sole trader get business vehicle finance?
How is GST treated?
Do I need insurance before I collect?
Can I finance more than one vehicle at a time?
What if I want to sell the vehicle mid-term?
A person reads this, not a scoring engine
A named advisor takes your file to the lenders on the panel that fund your industry and your turnover, and tells you plainly when business vehicle finance is the wrong answer and what to use instead.
Ready when you are
Compare Vehicle Finance today
Comparing is free, you’re never locked in, and checking won’t affect your credit score. If we can’t help, we’ll tell you that too.
