It’s important to remember that many of the people involved in getting your finance over the line will also be taking a break over the Christmas period.
With this in mind, starting early gives you a better chance of having the asset delivered, financed and working when you need it, as opposed to waiting until mid-January for everything to restart.
Why timing matters
Many lenders, dealers, suppliers and accountants run with reduced staff over the holiday period, and some close entirely between Christmas and early January. In the weeks leading up to the break, credit teams can also be busier than usual as businesses try to finalise purchases before year end.
That combination means an application that might normally move quickly can take longer. A single request for extra information can add days, and if the deal isn’t settled before the shutdown, it may sit untouched until everyone is back at their desks.
Common hold ups
Most delays come down to a handful of common issues:
- Missing or out of date financials. Depending on the loan size and lender, you may need recent tax returns, financial statements or bank statements.
- BAS lodgements that are behind. Lenders generally want to see your lodgements up to date.
- ATO debt without a payment arrangement. An outstanding tax debt can make approval harder, particularly if there’s no arrangement in place.
- Asset details that aren’t finalised. The lender will usually need a quote or tax invoice showing the exact asset, price and supplier before settlement.
- Private sale checks. Buying from a private seller can involve extra steps such as confirming ownership and checking for any existing finance owing on the asset.
- Signatures and insurance. Directors or guarantors who are away over the holidays, or an insurance certificate that hasn’t been arranged, can hold up settlement at the final stage.
Making the most of end of year deals
December is one of the busiest times for vehicle and equipment clearance offers. Many dealers have calendar year targets to meet, and stock built this year becomes last year’s model on 1 January, which gives them a strong reason to move it before the holidays. Plate clearance and run out offers often continue into January as well.
A few things are worth checking before you sign:
- Build date. The build plate shows when a vehicle was made, and resale value generally follows the build year rather than the date you bought it. A 2026 build purchased in January 2027 may already look a year old to a future buyer.
- What’s replacing it. If an updated model is due, ask what changes it brings and whether the discount outweighs them.
- Flexibility. You may get a sharper deal on clearance stock if you’re open on colour, trim or exact specification.
- The finance offer. Dealer finance can be convenient, but it’s worth comparing the rate, fees and structure with what’s available elsewhere.
Having finance pre-approved puts you in a stronger position to act when the right deal appears. A broker can compare options across a range of lenders and look at structures such as a chattel mortgage, finance lease or hire purchase, as well as whether a balloon payment suits your cash flow.
Why a summer upgrade can make sense
The $20,000 instant asset write-off is now permanent. According to the ATO, the measure is now law and applies from 1 July 2026 to small businesses with an aggregated turnover under $10 million. Eligible assets costing less than $20,000 can be deducted in full in the income year they are first used or installed ready for use, and the limit applies per asset.
That takes away the reason to hold off until the June rush. An eligible asset bought over summer can be claimed in the same income year as one bought in June, and your business gets to use it for longer. Assets costing $20,000 or more can still go into the small business simplified depreciation pool.
January is also a quieter month for many businesses, which can make it a practical time to take delivery, install new equipment and get your team trained before work picks up again. Your accountant can confirm whether you’re eligible and how a purchase fits your tax position.
How to get ahead
A few steps taken in November can make December much smoother.
- Decide what you need. Pin down the make, model or specification of the asset and request a quote from the supplier.
- Gather your documents. Pull together your latest financials, BAS and any ATO correspondence so they’re ready to go.
- Talk to your accountant. They can confirm your figures are current and help you understand how the purchase fits into your tax position.
- Ask about pre-approval. Some lenders may be able to assess your application before you’ve chosen the final asset, so you can move quickly when you find the right one.
- Check who needs to sign. Find out which directors or guarantors need to sign documents and when they’ll be available over the holiday period.
- Line up insurance. Have your insurer ready to issue a certificate of currency so it doesn’t become a last minute hold up.
Start the conversation now
If you have something on your list for the new year, get in touch with us before the end of November. We can talk through what you’re planning to buy, let you know what paperwork you’ll need and compare finance options so your application is ready to move before the Christmas break.
This article is general information only and doesn’t take into account your business’s objectives, financial situation or needs. Speak with your accountant or financial adviser about how any purchase affects your tax position.
