Do Low Doc Car Loans Require a Deposit?

Introduction

Low doc car loans help small business owners and sole traders access vehicle finance without full tax returns — but one common question is: Do I need a deposit to qualify?

In this article, we explain when a deposit is required, how much is typically expected, and how it can strengthen your loan application.

Do You Always Need a Deposit?

Not always — some lenders may offer 100% finance under a low doc loan.

However, offering a 10–20% deposit can:
✅ Improve your approval odds
✅ Reduce the lender’s risk
✅ Help secure a better interest rate
✅ Make you eligible for larger loan amounts

Especially if you have weak documentation, a deposit shows you’re financially committed.

How Much Should You Save?

While requirements vary, most brokers recommend aiming for:

• 10% minimum → Improves application strength

• 20% or more → Often gives you access to better deals or rates

Example: For a $50,000 vehicle, a 10% deposit = $5,000.

Case Study: Laura the Mobile Dog Groomer

Laura needed a $35,000 van to expand her mobile dog grooming business. Without full financials, she was worried she wouldn’t qualify.

Her broker advised her to provide:

• 12 months of bank statements

• A valid ABN

• A 15% deposit ($5,250)

This deposit significantly improved her approval chances, and she secured the loan quickly.

Benefits of Providing a Deposit

✅ Shows lender commitment
✅ Reduces total loan size, making repayments more manageable
✅ Demonstrates financial responsibility
✅ Gives you negotiating power on rates or fees

Tips for Saving a Deposit

• Use a dedicated business savings account

• Set aside a percentage from each job or invoice

• Avoid using personal credit cards or personal loans as your deposit source (lenders may question this)

Final Call to Action

Want to find out how much deposit you might need?
✅ Check your eligibility in just 20 seconds — no commitments, no impact on your credit score.

Visit our Business Lending Hub here:
https://financetheride.com.au/pages/small-business-car-loans

DISCLAIMER

The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.