Getting Started with a Low Doc Car Loan

If you’re self-employed and need a new vehicle, applying for finance can sometimes feel like the hardest part. Maybe your tax returns aren’t lodged yet. Maybe your income varies month to month. Or maybe you’re just too busy running a business to spend your days chasing paperwork. If any of that applies to you, a low doc car loan could be the perfect way to get you the vehicle you need.

These loans are designed for business owners and sole traders who are financially capable of repaying a loan but don’t have the full documentation a traditional lender would usually ask for. If you’ve got an ABN and need a car sooner rather than later, this could be a simple, flexible option.

What is a Low Doc Car Loan?

A low doc car loan is a type of business car loan that doesn’t require full financial statements, profit and loss reports, or recent tax returns. Instead, you can apply with alternative documents that show your ability to make the loan repayments: things like BAS statements, business bank account summaries, or an accountant’s income declaration.

These loans are commonly used by sole traders, subcontractors, and small business owners who have the income to support a loan but may not have everything on paper just yet. If that sounds like your situation, you’re far from alone.

Why Car Buyers Choose Low Doc Loans

We often hear from clients who assume they can’t get a car loan because they haven’t finalised their books or don’t have their tax returns ready. But lenders know that running a business doesn’t always mean tidy paperwork, and many are willing to take a more flexible view, as long as you can demonstrate income in another way and have a good credit record.

Low doc car loans are especially popular with buyers who need a vehicle for work. That might be a new ute for a trade business, a van for deliveries, or a dual-purpose vehicle for both business and personal use. If the car will be used primarily for work, you may also want to explore whether a chattel mortgage structure is the best fit.

What You’ll Need to Apply

Despite the name, a low doc loan still involves some paperwork. You’re not skipping the application process, just approaching it differently. Most lenders will want to see that you’ve had an active ABN for at least two years and that you’re registered for GST. A signed income declaration from your accountant is often required, along with recent BAS or bank statements that show your business activity.

In some cases, you may need to provide an asset and liability summary or show that you own property or have a deposit ready. Requirements inevitably vary depending on the loan amount and the lender, but you don’t need to be perfectly polished to get started, so don’t get discouraged if you haven’t ticked off everything we’ve mentioned so far.

How It Differs from a Full Doc Car Loan

A full doc loan requires the kind of documentation you’d expect of a standard car loan: tax returns, financials, and detailed income verification. That loan process is thorough but not always practical if your paperwork isn’t current or you’re in the early stages of growing your business.

Low doc loans take a different approach. Lenders still need to assess your ability to make repayments over the loan term, but they’ll accept alternative documentation instead. That flexibility makes these loans much faster to process, which can make all the difference when you’ve found the right car and need to move quickly.

Once approved, you’ll be offered a formal loan agreement that outlines the repayment terms, interest rate, and any fees involved. It’s important to review this carefully and make sure everything aligns with what was discussed during the application process.

What Can You Use the Loan For?

Low doc car loans are typically used for vehicles with a business purpose. That includes brand-new cars, near-new models, or even used vehicles if they meet lender requirements. Whether you’re replacing your work ute, expanding your delivery fleet, or upgrading the vehicle you drive to client meetings, a low doc loan can help you secure the finance without delays.

Some lenders will also approve private sale car loans or finance for older vehicles, depending on your profile. Additionally, some clients also consider alternatives like a novated lease, especially when the vehicle is part of a salary package arrangement.

Are the Interest Rates Higher?

Interest rates on low doc car loans can be slightly higher than those offered on standard full doc loans. That’s simply because there’s more perceived risk when the lender has less formal documentation to assess. However, the gap isn’t always wide. If you’ve got a clear credit file, a stable business history, and the right paperwork, the rates can still be competitive with full doc loans.

It’s also a good idea to double-check the loan’s comparison rate to get a clearer picture of any hidden fees or charges that might not be obvious from the base interest rate alone. In many cases, the convenience of fast access to finance and having to jump through fewer hoops to get approved far outweighs the slight difference in interest rate.

Ready to Get Started? Trust Credit One for Easy Car Finance

Applying for a low doc car loan is straightforward. We’ll help you work out what documents you need based on your circumstances, and match you with a lender who understands how your business operates. Instead of waiting months to sort through all the paperwork required for a full doc loan, a low doc option can help you move forward with just the essentials. Once your paperwork is in order, approval is often quick, sometimes within just a few days.

If you’re ready to explore your car finance options as a business owner, we’re here to help. You can dive deeper with our car loan guide for small business owners or compare the different types of business car loans available. Ready to get started? Use our loan calculator to estimate your repayments or complete our easy online loan application and we’ll take care of the rest.

If you’re not sure whether low doc car finance is right for you, speak to our team or browse our business finance options to explore what else might suit your needs.