A business auto loan can be an affordable way to buy cars, vans or trucks for your business. You can also use one to refinance a vehicle you already own.
Business auto loans come with built-in collateral — the vehicle itself. That means they may cost less or be easier to qualify for than other small-business loans. And depending on the lender, you may not have to provide a personal guarantee to secure the debt.
How much do you need?
We'll start with a brief questionnaire to better understand the unique needs of your business. Once we uncover your personalized matches, our team will consult you on the process moving forward.
Best business auto loan lenders
Below are the top lenders across key categories. Select a lender to jump to details about its offerings, or click here to see a quick comparison table.
Business auto lender | Best for… | Passenger vehicle financing available? | Commercial truck financing available? |
|---|---|---|---|
No personal guarantee | ✅ | ✅ | |
Bad credit | Limited | ✅ | |
New businesses | ✅ | ✅ | |
Financing the full cost of a business-use passenger vehicle | ✅ | ❌ | |
Specialty vehicles | ✅ | ✅ | |
Veterans | ✅ | ✅ | |
Low interest rates for established businesses | ✅ | ❌ | |
Financing upfront vehicle costs | ✅ | ✅ |
Ally Business Auto Loan
Best for: Business auto loans with no personal guarantee.
Key facts:
- Option for no personal guarantee.
- Terms up to 84 months.
- Funding can be used to modify existing commercial vehicles.
- Must apply through a dealership.
We chose Ally as our top pick for business auto loans with no personal guarantee because qualified borrowers can finance vehicles in the business’s name only, an option no other lender on this list explicitly offers. This can help build business credit and protect you from liability related to the vehicle.
Details
Ally Bank provides business auto loans and leases for new and used business vehicles. Leases can be open-ended with flexible terms or closed-ended with fixed terms.
You can also get loans for heavy-duty trucks and business-related modifications, like adding a crane or towing equipment.
An Ally Bank representative told me that borrowers must apply for financing through a participating dealership. Ally works with dealerships nationwide, and you can find one near you using its Dealer Locator tool.
How to qualify
- Business must be at least 24 months old.
- Minimum credit score of 600.
- If buying, the vehicle can’t be older than 12 model years and can’t have more than 120,000 miles on it. Certified pre-owned vehicles must be no more than 10 model years old and can’t have more than 100,000 miles.
- If leasing, the vehicle can’t be older than two years.
eLease Equipment Financing
Best for: Borrowers with bad credit.
Key facts:
- Terms up to 60 months.
- No loan or leasing maximums.
- Minimum credit score requirement: 550.
- Rates start at 9%.
We chose eLease as our top pick for bad credit because it sets its minimum credit score at 550. Other options if you have slightly stronger credit include National Funding and Ally Bank, both of which have minimum credit score requirements of 600.
Details
eLease offers flexible equipment financing options with low fees, rates starting at 9% and repayment terms up to 60 months. It won’t finance passenger cars, but it can finance light-duty trucks and some SUVs, depending on how you plan to use it.
How to qualify
- Minimum credit score of 550.
- No minimum annual revenue or time in business required.
National Funding Equipment Financing
Best for: New businesses
Key facts:
- Loan amounts up to $150000.
- Terms ranging from 24 to 60 months.
- May get a discount for paying the loan back early.
- Startups and borrowers with bad credit may qualify.
We chose National Funding as our top pick for startups because businesses may qualify after just 6 months in business, which is the shortest among lenders on our list.
Details
National Funding is an online lender offering business vehicle financing and leasing for commercial cars, vans, trucks and taxis. Its eligibility requirements are less strict, making it easier for startups or businesses with lower credit scores to qualify.
How to qualify
- Business must be at least 6 months old.
- Minimum credit score of 600.
- Must have an equipment quote from a vendor.
» MORE: Startups business loans
PNC Small Business Vehicle Finance Loan
Best for: Financing the full cost of a business-use passenger vehicle.
Key facts:
- Loans from $10000 to $250000.
- Terms between 24 and 72 months.
- Fixed interest rates.
We chose PNC as our top pick for business-use passenger vehicles because its loan is specifically designed for it and may cover the vehicle’s full purchase price.
Details
PNC offers a business vehicle loan for new and used passenger vehicles. When I called PNC, a representative told me that applications over the phone typically take around 25 minutes, and that someone would follow up within three business days after applying. You can also apply in person at a PNC branch. PNC may charge a prepayment penalty if you pay the loan back early.
How to qualify
- Business typically must be at least 24 months old. Options may exist for newer businesses.
- Must have a PNC business checking account for automatic payments.
- Collateral required.
Crest Capital Vehicle Financing
Best for: Specialty vehicles
Key facts:
- Amounts between $10,000 and $500,000.
- Terms ranging from 24 to 72 months.
- Fixed interest rates.
We chose Crest Capital as our top pick for specialty vehicles because it finances a particularly wide range of work vehicles, including food trucks, ambulances, fire trucks, hearses and more.
Details
Crest Capital offers a variety of loans designed to finance most new and used work-related cars, SUVs and trucks.
How to qualify
- Business must be at least 24 months old, or 60 months if financing company cars or SUVs.
- Minimum credit score of at least 700.
- All business owners with at least 20% stake in the business must own a home.
- Company cars and SUVs can’t be older than three years, can’t have more than 125,000 miles and can’t be worth more than $150,000.
Navy Federal Business and Commercial Vehicle Loans
Best for: Veteran business owners
Key facts:
- Starting at $10,000.
- Terms up to 72 months.
- APRs starting at 4.09% for new vehicles and 5.19% for used vehicles for terms up to 36 months.
- No fees or prepayment penalties.
We chose Navy Federal as our top pick for veteran business owners because it exclusively serves the military community. Its business auto loan offers exceptionally low starting APRs, with no fees or prepayment penalties.
Details
Navy Federal Credit Union offers business and commercial vehicle loans to its business members. Business vehicle loans can be used to buy or refinance cars, light-duty trucks and SUVs.
Commercial vehicle loans, on the other hand, are used only for buying commercial, heavy-duty or specialty trucks and vans, and semi-tractor trailers. NFCU takes up to 10 business days to review applications.
How to qualify
- You must be a Navy Federal business member to apply. This starts with becoming a regular Navy Federal member, which is available to those with ties to the armed forces or Department of Defense. You’ll then need to qualify for business membership by being in good standing and submitting required documents like your federal tax ID number.
- Business vehicles can’t be older than six years, and commercial vehicles can’t be older than five.
- Must sign a personal guarantee and have the vehicle’s information and sales price ready.
» MORE: Best credit union business loans
Bank of America Business Advantage Auto Loan
Best for: Low interest rates for established businesses.
Key facts:
- Loans starting at $10000.
- 30-day rate lock guarantee.
- APRs starting at 5.89%.
We chose Bank of America as our top pick for low interest rates because it advertises one of the lowest starting APRs among lenders on our list. Eligible Preferred Rewards for Business members may also receive interest rate discounts ranging from 0.25%–0.5%.
Details
Bank of America business auto loans can be used to buy or refinance cars, vans and light trucks. If you haven’t chosen a vehicle yet, Bank of America will lock in your loan rate for 30 days, giving you time to shop. Rates start at 5.89%.
How to qualify
- Business must be at least 48 months old.
- Vehicle can’t be older than five years.
- Vehicle must be valued at $10,000+ and have fewer than 75,000 miles.
Truist Small Business Auto and Commercial Vehicle Loans
Best for: Financing upfront vehicle costs.
» MORE: Truist business loans review
Key facts:
- Up to $250000, but you may be able to qualify for more if you have $2 million in revenue.
- Terms up to 84 months.
- Interest rate discounts for Truist business checking account holders.
- Can finance the full amount of the vehicle without a down payment, plus 10% to cover soft costs, like delivery and taxes.
We chose Truist as our top pick for financing upfront vehicle costs because borrowers may finance up to 110% of the total cost of the vehicle. The extra 10% covers soft costs like delivery fees, taxes or tag and license costs.
Details
Truist Bank offers small-business auto loans with terms up to 75 months and commercial vehicle loans with terms up to 84 months. You can buy, upgrade or refinance vehicles such as cars, vans, SUVs, light trucks and commercial vehicles.
How to qualify
- Business must be at least 24 months old. You may be able to qualify for a smaller loan if your business is newer.
- If you need to borrow more than $250000, you’ll need to visit a branch and make at least $2 million a year in revenue.
Compare the best business auto lenders
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| Product | Min Credit | Max Loan Amount | |
|---|---|---|---|
 Ally Business Vehicle Line of Credit with NerdWallet Small Business | 600 | Undisclosed | with NerdWallet Small Business |
 eLease - Equipment financing Nerdwallet Rating 4.0 with NerdWallet Small Business | 550 | Undisclosed | with NerdWallet Small Business |
 National Funding - Equipment financing Nerdwallet Rating 4.8 with NerdWallet Small Business | 600 | $150,000 | with NerdWallet Small Business |
 PNC Bank - Small business vehicle finance loan Nerdwallet Rating 4.1 with NerdWallet Small Business | 700 | $250,000 | with NerdWallet Small Business |
 Crest Capital Vehicle Financing with NerdWallet Small Business | 700 | $500,000 | with NerdWallet Small Business |
 Navy Federal Business and Commercial Vehicle Loans with NerdWallet Small Business | 700 | Undisclosed | with NerdWallet Small Business |
 Bank of America Business Advantage Auto Loan with NerdWallet Small Business | 700 | Undisclosed | with NerdWallet Small Business |
 Truist Small Business Auto and Commercial Vehicle Loans with NerdWallet Small Business | 700 | $250,000 | with NerdWallet Small Business |
What is a business auto loan?
A business auto loan, also known as a commercial auto loan or business car loan, is financing you can use to buy a vehicle for your company. These loans typically cover cars, vans and some trucks. You’ll likely need an equipment loan or commercial truck loan for a heavy-duty vehicle.
A business loan from a bank will have the lowest rate. If you already have a business account with a bank, start by seeing what rate it will offer you on a business auto loan. Alternative lenders charge more, but their vehicle loans can make sense if you can’t qualify for bank or SBA financing or need funds quickly.
🤓Nerdy Tip
If you're struggling with poor personal credit, you may be able to qualify for an equipment loan with bad credit, or consider other bad credit loans with more lenient qualification requirements.How to get a business auto loan
- Find the right vehicle. This means not only the type of vehicle that fits your business’s needs, but also one a lender will approve. For example, if you want to finance a used car, many lenders will have specific mileage limits and won’t approve a vehicle that’s more than five years old due to depreciation.
- Compare offers. If your company has a relationship with a financial institution, it can make sense to see if it offers business auto loans. But as with other types of business loans, you may find lower rates by shopping around. Look at a lender’s APR and details like how much of the total cost you can finance. If it’s less than 100% of the vehicle’s total cost — don’t forget expenses like taxes and registration — you’ll need more cash on hand.
- Apply with a lender. Lenders have different application procedures. The process may be time-consuming and require paperwork like a business license, business tax ID and information about all the business’s owners. If you’re in a rush, alternative lenders may offer a more streamlined application process, but are more expensive.
Business auto loan rates
Business auto loan rates vary depending on factors like the applicant’s income, personal credit score, time in business and length of financing term. Because business auto loans use the vehicle itself as collateral for the loan, the age and condition of the car may also affect the rate you get.
Banks and credit unions typically offer the best rates, but they can be tricky to qualify for. Rates can range between about 4% and 14% depending on several factors. Alternative lenders, on the other hand, may be easier to qualify for, but charge higher rates.
» MORE: How to finance used equipment
Use our business auto loan calculator to see how different rates impact monthly payments and loan costs:
Business auto leases vs. loans
Lenders may offer both business auto leases and loans. Consider a loan if you want to own the vehicle outright in the long run. However, a business auto lease may make sense if:
- You need to free up cash flow. If you’re worried about fitting a car’s costs into your operating budget, auto lease payments are often lower than loan payments. You may also be able to spread the sales tax over the repayment term, depending on where you live. But you could pay more in insurance, and overall, for a lease.
- You don’t want to be stuck with a car. If having the latest car model is important to your business, a lease gives you the opportunity to switch to a new car at the end of your term. You also have options to get out of a car lease — like swapping it for a new one — if the vehicle doesn’t end up fitting your company’s needs.
- You know how you’ll use the car. Your lease agreement will dictate what you can do with the vehicle, both in terms of how many miles you can drive and whether you do simple modifications, like wrap the outside. If you plan to substantially upfit the car, or run it into the ground, buying may be the better option.
» MORE: Car lease calculator
Business auto loans vs. personal auto loans
Business auto loans are similar to personal auto loans — you get money to buy a vehicle and repay that amount plus interest over a set term. But there are some notable differences with a business auto loan:
- The vehicle is for business purposes. Small-business owners’ personal and professional lives often blur, but business auto loans are meant for vehicles used by your company. When you apply, the lender will likely ask how you’ll use the vehicle and you may need to provide documentation like a business plan or company financial statements.
- The vehicle can be in your business’s name. For qualified borrowers, some lenders will let you put a business auto loan in your company’s name only. This can protect your personal credit or assets should your business be unable to repay the debt. In other instances, you’ll need to provide a personal guarantee for the loan as collateral.
- Potential tax deductions are available. If you buy or lease a business vehicle, you can deduct its ownership and operation costs. Owners may also deduct a car’s depreciation over six years or by using the section 179 deduction, depending on the vehicle and when it was put in service (limits may apply).
» MORE: Semi truck loan calculator
Alternatives to business auto loans
In addition to a business auto lease, other alternatives to business auto loans include:
SBA loans
SBA commercial vehicle loans are issued by private lenders but backed by the federal government. They include SBA microloans, 7(a) loans and Express loans, all of which can be used to purchase a standard vehicle, as long as its use is for business purposes. SBA 504 loans may also be an option if you’re trying to finance certain heavy-duty vehicles and equipment, such as backhoes and cranes, when the equipment is integral to the business’s operations and has a remaining useful life of at least 10 years.
If you can qualify for an SBA loan, it will almost always beat an online lender in terms of interest rate. The tradeoff? They can take weeks or months to fund.
Business lines of credit
Lines of credit are revolving sources of capital that can be used to purchase a vehicle for your business. With lines of credit, you only pay interest on the money you’ve used, and you can redraw what you’ve paid back. Business lines of credit are offered by banks and online lenders, and online lenders usually offer the easiest approval terms.
Depending on the type of vehicle you need to finance, a line of credit may not cover the full amount — business credit lines typically hover around $100,000 to $200,000. Certain types of businesses may qualify for an SBA line of credit up to $5 million.
Consumer auto loans
If you can’t qualify for a business auto loan or your vehicle will be driven mostly for personal use, consider a consumer auto loan. This won’t come with benefits like building business credit, but personal auto loans are widely available, even if you have bad credit.
Personal business loans
You can typically use the proceeds from a personal business loan on whatever your company needs — including vehicles. But these loans will likely be more expensive than any other business auto loan option, making them a last resort for financing a vehicle purchase.
How we worked on this guide
To update this guide to business auto loans, we spent days researching lenders that offer financing for business vehicles. This includes scouring lender websites for information on loan terms, eligibility requirements, vehicle restrictions, interest rates and more.
We also call and speak with lender representatives directly.
Per NerdWallet’s editorial guidelines, we review each lender with editorial independence. That means assessing lenders based on their individual merits and without consideration to any business relationships they may or may not have with NerdWallet.
We approached our research from the vantage point of an entrepreneur, including the details that matter most when trying to finance company vehicles.
Former NerdWallet writer Lisa Anthony contributed to this article.
