How to Finance a Supercar in Australia: What Buyers Need to Know

Financing a supercar in Australia is a different process from financing a family car. The amounts are larger, the vehicles are more complex, and the financial products available are more varied. Understanding your options before approaching a lender will help you structure a finance arrangement that suits your situation.

The Finance Options Available

Australian buyers financing a supercar typically use one of four approaches:

Chattel mortgage: The most common finance product for business use. The buyer owns the vehicle from the start, and the financier holds a mortgage over it as security. This product offers the ability to claim GST upfront, depreciation deductions, and interest deductions against taxable income if the vehicle is used for eligible business purposes. The term is typically 24 to 60 months.

Commercial hire purchase: The financier purchases the vehicle and hires it to the buyer over the finance term. Ownership transfers to the buyer at the end of the term. Similar tax treatment to chattel mortgage for business use.

Finance lease: Common for business buyers who prefer to keep the vehicle off their balance sheet. Ownership remains with the financier throughout the lease term, and the buyer pays a residual value at the end to acquire the vehicle or return it.

Personal loan: For private buyers without a business finance rationale, a secured personal loan against the vehicle is the standard option. Interest rates are typically higher than commercial products.

The Deposit Question

Lenders for high-value vehicles typically require a deposit. The standard deposit for supercar finance in Australia is 20 to 30 percent of the purchase price. On a $400,000 car, this is $80,000 to $120,000. Some specialist lenders will consider lower deposits for buyers with strong asset positions.

The deposit reduces the loan-to-value ratio, which affects the interest rate the lender offers. A higher deposit generally means a better rate.

Interest Rates for Supercar Finance

Interest rates for supercar finance in Australia vary based on the buyer’s credit profile, the age of the vehicle, and the lender. Typical rates for new supercar finance range from approximately 5.5 percent to 8.5 percent per annum as of 2025-26. Used supercar finance, particularly for vehicles over five years old, typically attracts higher rates.

Some lenders impose a maximum age or maximum LVR based on the vehicle value. These criteria vary by lender, and specialist exotic car finance brokers maintain relationships with lenders who cater specifically to this market.

The Residual Value Question

Many finance products for high-value vehicles include a residual value – an amount outstanding at the end of the finance term. Setting the residual correctly requires assessment of the car’s likely value at the end of the term. For supercars that hold value well (Ferrari, Porsche 911 GT3, McLaren limited editions), a higher residual can reduce monthly repayments while remaining realistic. For cars with less certain residual values, a conservative residual protects the buyer from being in negative equity.

Specialist Lenders and Brokers

The major banks in Australia do not typically have specialist exotic car lending teams. Most supercar buyers use specialist finance brokers who maintain relationships with non-bank lenders that understand the market.

These brokers can arrange finance for new and used vehicles, including older models that the major banks might decline due to age, and can often move more quickly than a bank. Their fee is typically a commission from the lender rather than a direct charge to the buyer.

GST and LCT Considerations

For business buyers, the GST on a supercar purchase (10 percent of the purchase price before LCT) is claimable as an input tax credit if the vehicle is used for business purposes. The eligibility criteria are specific and the ATO’s rules about mixed personal and business use must be understood before claiming.

Luxury Car Tax is not recoverable – it is a cost of purchase regardless of how the vehicle is used. LCT is calculated on the amount of the purchase price above the LCT threshold ($80,567 for standard vehicles, $91,387 for fuel-efficient vehicles in 2025-26) at a rate of 33 percent.

Practical Steps

Before approaching a lender, prepare: two years of tax returns, recent financial statements if self-employed, a summary of assets and liabilities, and a clear description of how the vehicle will be used (business, personal, or mixed).

Pre-approval before making an offer on a vehicle is strongly recommended. It defines your budget with certainty and avoids the situation of agreeing a price and then being unable to settle.