Business Car Loans & Vehicle Finance NZ | How to Fund Your Work Ute or Van

As a business owner, buying a vehicle isn’t just about getting from A to B—it’s about having the right tools to keep your business moving. Whether you're upgrading the work ute, adding a van to the fleet, or getting a fuel-efficient car for site visits, financing it right can make a real difference to your cash flow.

This is your no-fluff guide to smart vehicle finance for business owners in New Zealand.

fundr helping NZ business owners with vehicle financing

What’s a Car Loan (or Vehicle Finance) for Business?

A business vehicle loan helps you spread the cost of a vehicle over time—so you’re not draining your working capital upfront. You get the vehicle now and pay it off in regular monthly instalments (plus interest), usually over 2 to 5 years.

You can finance:

• New or used vehicles

• Utes, vans, trucks, or company cars

• One vehicle—or a whole fleet

  
  

Lenders include:

• Your business bank

• Finance companies

Key Terms You Actually Need to Know

Term	What It Means (For Your Business)
Principal	The amount you borrow (vehicle cost minus any deposit or trade-in)
Interest Rate	The cost of the loan, usually fixed and based on your credit and business history
Loan Term	How long you take to repay (typically 24–60 months)
Monthly Repayments	Fixed amounts paid from your business account

Pro tip: Shorter loan = less total interest. Longer loan = more cash flow flexibility.

New, Used or Lease – What’s Best for Your Business?

New vehicles

• More expensive upfront

• Lower risk = better finance rates

• Ideal if reliability and warranty matter for your day-to-day operations

Used vehicles

• Lower purchase price

• May have higher interest rates

• Good if you’re buying multiple vehicles or working with a tighter budget

Leasing

• You use the vehicle but don’t own it

• Lower monthly costs

• Avoid depreciation, but usually comes with mileage caps and conditions

• Often better for cars than utes or vans used commercially

Need to own the asset for depreciation and GST claims? Go with a loan, however it's always best to check with your accountant.

Before You Apply: Get Your Ducks in a Row

1. Know your numbers: Have your financials ready: GST returns, profit/loss reports, or at least 6 months of bank statements. Lenders want to see you’re stable and profitable.

2. Get pre-approved: This gives you a clear budget to work with and saves you time at the dealership. It also strengthens your negotiation power.

3. Check your credit: Both your personal and business credit histories matter—especially if you're a sole trader or director providing a personal guarantee.

4. Talk to a broker (or your accountant): A finance broker can find options that fit your tax setup, and your accountant can help you weigh up tax implications (e.g. interest deductibility, depreciation, GST recovery).

At the Dealer or Finance Desk: Ask These Questions

• What’s the total cost over the loan term—not just monthly payments?

• Are there early repayment penalties?

• What fees are included (documentation, PPSR, loan establishment)?

• What security is being taken—just the vehicle, or more?

• Is the finance under the business name or yours personally?

If the dealer pushes extras like gap insurance or warranties—ask if they’re truly useful for a business vehicle. Often, they’re not.

 Choosing the Right Loan Structure

• Term Loan/ Chattel Mortgage Own the asset while paying it off. You may be able to claim GST upfront and depreciate the vehicle annually. Good for GST-registered businesses.

• Finance Lease Lower monthly cost, but you don’t own the vehicle unless you pay a residual at the end. Can suit cashflow-focused businesses.

• Operating Lease Like renting. No ownership. Simpler but not always tax effective.

Don’t Forget the Tax Side

• Interest is generally tax-deductible

• You may be able to claim GST on the purchase if you're registered

• Vehicle depreciation applies—but talk to your accountant for advice specific to your setup

Final Word: Finance That Works for You, Not Against You

The right vehicle finance can give your business a boost—without tying up cash you could be using elsewhere. It’s not just about getting the car; it’s about protecting your cash flow, minimising tax, and structuring it right.

Take control. Know your numbers. Don’t settle for the first finance offer you see.

Talk to us before you think about financing your next ride - it doesn't cost anything and could save you money in the long run.