What is a low-doc car loan?

05 Jul 2017

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The terms ‘low-doc loans’ or ‘self-declaration loans’ started in the home loan industry and refer to a loan product that requires less documentation than what would normally be required of an applicant. When it comes to low-doc car loans there are two major points of difference, they don't always come with a higher rate of interest compared with normal-doc car loans, and the vehicle's useage often needs to be primiarly business use, which is generally not the case for low-doc home loans, which could be available to buyers purchasing a family home rather than just commercial properties.


  1. Proof of ID
  2. Proof of comprehensive insurance over the car being purchased
  3. Trust Deed or Partnership agreement if applicable to your business

Not every lender has low-doc car loans available and each lender that does may have a different criteria and document requirements, so this is a guide only.


The main thing to qualify would be that the vehicle is going to be used for more than 50% business use and with many lenders you'll need to have held your ABN for a minimum of twelve months.

In some rare cases employee's who need to drive as part of their day-to-day role can be provided with a car allowance which could be put towards a low-doc loan rather than a standard car loan.

ABN holders usually need to have had their ABN active for a minimum of twelve months and may be required to be registered for GST for a similar length of time. But this is not a hard and fast rule, so it’s worth doing your research to find a financier that will work with your business structure.

It's important to remember that applicants for low-doc loans still need to declare their income, they just don’t need to provide the same level of evidence for that income as you an individual would need too.

Low-doc car loans could be an option for those who don’t have up-to-date financial statements, or for those who just want an easier, quicker approval as they manage their business day to day.