If you are a business owner or self-employed, the loan requirements needed may be difficult to obtain or, at times, you may not feel comfortable sharing your financial documents with the bank.
In these cases, you may opt for a low doc car loan.
Generally, requirements needed for a car loan in Australia include a Driver's License (if you have one), income, expenses, liabilities, etc. With a low doc car loan you may not need to provide all of these since some specialised lenders will use other methods to determine your income or financial capability.
This ensures that many Australians, especially business owners and the self-employed, can potentially secure financing for a car that they can use either personally or for business.
Business owners may potentially benefit from a low doc car loan as they may be able to claim tax deductions and GST benefits against it.
Low doc car loans used to have high interest rates in the past. More and more lenders are now offering this type of loan and interest rates have become lower than they were previously.