Prestige & Luxury Car Finance

The finance questions that matter on a high-value car are rarely about the rate alone. These are the ones we work through before an application goes in.

 

Luxury car tax is inside the price

Luxury car tax (LCT) is 33% of the GST-exclusive value above the threshold. For 2026–27 the thresholds are $80,809 for most cars and $91,661 for fuel-efficient cars (3.5 L/100 km or less). It is normally built into the drive-away price, so the amount you finance can be well above the headline figure. LCT generally doesn't apply when a car is sold more than two years after it was made or, for an imported car, more than two years after it was imported, which is one reason a near-new car can price differently from a new one. Importing a car yourself is different: if its value is over the threshold, LCT can apply at import, whatever its age.

 

GST and the car limit when a business buys

If the car is used in a business and bought with a chattel mortgage, the business may be able to claim GST and depreciation, but both are capped by the car limit: $69,883 for 2026–27. On a $250,000 car most of the price sits above that cap. How the car is held is a tax decision for your accountant; we structure the finance to match it.

 

Balloon payments and your exit

A balloon lowers the regular repayment by leaving a lump sum due at the end of the term. It suits many prestige purchases because the car often keeps a meaningful part of its value. The trade-off is more interest over the term and a debt you must clear at the end, by paying it, refinancing it or selling the car. Lenders limit the balloon by term and vehicle age, so we start with what you plan to do at the end, not just the repayment today.

 

Value, not just price

Lenders lend against what the car is worth, not only what you agree to pay. For recent models they rely on pricing guides. For rare, modified or low-volume cars they may want an independent valuation or dealer evidence. If you pay above guide value, expect to contribute a larger deposit.

 

Private sales, auctions and interstate cars

Buying privately means doing the checks a dealer would normally do for you. A PPSR search shows whether money is owed on the car and whether it is recorded as stolen or written off, and any existing finance must be paid out at settlement so the car comes to you clear. Auction purchases are usually unconditional, so finance needs to be approved before you bid.

 

Imported and specialist-compliance vehicles

A vehicle brought in privately, or through a specialist compliance workshop, must be approved for Australian registration before it can be registered. Lenders generally want the car complied and registered, or a clear timetable to get there, before they settle.

 

Personal, company or trust ownership

A company or trust can borrow, usually with the directors or trustees guaranteeing the loan. The documents change with the structure: financial statements and tax returns for an established business, and, with some lenders, an ABN and GST registration history for a lighter-documentation application. The right structure is a tax and asset-protection question first.

 

Insurance the lender will expect

Expect to need comprehensive insurance from settlement, with the lender noted as an interested party. On a high-value car, check whether the policy is agreed value or market value. That decides what is paid if the car is written off, and market value can be less than the amount you owe.

 

Paying out early or upgrading

Many prestige owners change cars within a few years. Before signing, check the early-payout terms: fixed-rate commercial loans can carry costs for paying out early, and any balloon still has to be cleared when you trade in. We look at the likely exit when we structure the loan.

 

General information only. It does not consider your objectives, financial situation or needs. Tax figures are from the ATO (checked 1 October 2026) and change each financial year; lender policies vary. Speak with your accountant about tax.

Considering a balloon on a prestige car? Our Balloon and End-of-Term Planner compares it with the car’s estimated value at the end of the term, and shows your options when it falls due.

What will it really cost to run? Our True Cost of Ownership Calculator adds up interest, insurance, servicing, depreciation and any Luxury Car Tax in one answer.