A business can finance an electric vehicle in much the same way as any work vehicle: with a chattel mortgage, a finance lease or a business loan. The structure matters more than the badge on the car, and the tax side depends on your own circumstances, so check it with your accountant.
The main ways to finance it
- Chattel mortgage: you own the vehicle from day one and it is the security for the loan. A popular choice for businesses; see chattel mortgage vs lease.
- Finance lease: the financier owns the vehicle and leases it to you. At the end you may pay a residual, refinance or return it.
- Business loan: flexible, and can suit a vehicle when you want to keep security or terms simple.
What lenders look at
- Your ABN and how long the business has been trading.
- Recent financials or tax returns, and your income and existing commitments.
- The vehicle: its price, age, whether it is new or used, and the seller.
- Your deposit, and whether a balloon is part of the structure.
A newer business may have fewer options, and some lenders are stricter on particular makes, models or ages. A broker can compare lenders for your situation and explain where each one stands.
Costs and tax: what to check first
A business may be able to claim some of the cost of a work vehicle, for example GST, depreciation and interest, but how much depends on whether you are registered for GST, how much of the use is for work, and the limits that apply to cars. Do not buy only for the tax benefit. Work out whether the vehicle suits the business, then ask your accountant what you can claim.
For an overview of the cost of finance beyond the repayment, see comparing the total cost of business finance. To see how a repayment, term and balloon fit together, try the business vehicle calculator.
More than one vehicle
If you are adding several vehicles, or a van or ute as well, they can sometimes be financed together. See two equipment finance facilities, one repayment for an example of how that can work.
The takeaway
Choose the structure that suits your cash flow and how long you plan to keep the vehicle, and treat tax benefits as a bonus, not the reason. loan-o can compare options across 50+ lenders and review any offer you already have. Start a free finance check; there is no credit check to enquire.
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Finance is subject to lender approval, lending criteria, terms, conditions, fees and charges. The information in this article is general and does not take into account your personal or business needs.
Last reviewed: 8 October 2026. This content provides general information only. It should not be treated as personal financial, tax, legal or credit advice.
Frequently asked questions.
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Often, yes. Lenders look at your ABN, trading history, income, the vehicle and any deposit. What is available depends on the lender, so a broker can narrow it down.
The structures are the same: chattel mortgage, finance lease or a business loan. Lenders may treat the age, price and expected resale value differently, which can affect the balloon and the rate they offer.
Possibly, depending on whether you are registered for GST, how the vehicle is used and the limits that apply to cars. Rules and thresholds change, so ask your accountant or the ATO before you rely on any figure.
It can apply to eligible assets for eligible businesses, but cars have special limits, so it does not apply the same way to every vehicle. Check the current rules with your accountant or the ATO.
A balloon lowers the repayment, but you still owe it at the end, and the value of a vehicle at that point is uncertain. Weigh the lower repayment against the risk that the vehicle is worth less than the balloon.
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