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The $692 insurance secret car lenders won't tell you

Published 20 days ago • 3 min read
The Gusto Brief — Issue 6

In this issue

→ The EOFY finance deadline most tradies don't see coming: and why late June is already too late
→ Your car loan might be costing more than just the repayments: the insurance connection explained
→ $2,226 a year: what the average Aussie now pays for car insurance, and how to pay less

🔧 EOFY vehicle finance: the deadline that's closer than you think

If you're self-employed or run a small business, you probably know you can claim a vehicle purchase before June 30. What most people don't know is how quickly the window actually closes.

Lender turnaround times blow out significantly in late June. In April, you're looking at around five business days from application to settlement. By mid-June, that same process routinely takes 15 to 20 days. Leave the application too late and the vehicle won't settle before financial year end. No settlement, no deduction.

Here's what that means for you: if you want to purchase a work vehicle and have it count in the 2025/26 tax year, you need to start your finance application now. Not next week. Now.

The Short Version

The $20,000 instant asset write-off applies to eligible assets under that threshold. Most utes, vans, and commercial vehicles fall into small business pool depreciation instead. Either way, the vehicle must be purchased, settled, and ready for use before midnight on June 30.

There's also a GST angle that often gets missed. Self-employed Australians who settle before June 30 can claim the GST component back on their next BAS. On a $77,000 ute, that's close to $7,000 back in your next quarterly return.

If you want to explore your options before the window closes, the Gusto Finance team can help.

From us

Heading into June, the question we hear most is: "Is it too late to sort finance before EOFY?"

For most people, it's not. But it's getting close. The Gusto Finance team compares options across 50+ lenders and can move quickly on EOFY applications. Whether you're looking to finance a work vehicle before June 30 or just want to know if your current rate still makes sense, we'll find the right fit without affecting your credit score.

Get started →

🛡️ Does your car loan affect your insurance costs?

When you take out a car loan, your lender requires you to hold comprehensive insurance for the life of the loan. It's not optional. It's written into your finance contract.

The catch: you can't downgrade your cover to save money on premiums, even when insurance costs are rising. Loan holders are stuck paying full comprehensive cover whether they like it or not.

This piece from our team explains how the two are connected, what your lender can actually require of you, and whether shopping for a cheaper comprehensive policy is still worth doing.

Real story: the most common question we get from customers mid-loan is whether they can drop to third-party cover to save money. The answer is no. But switching to a cheaper comprehensive policy with the same level of cover? Always on the table. Often worth doing.

Worth reading before your next renewal.

💰 Car insurance: $2,226 a year and climbing

The average Australian now pays $2,226 a year for comprehensive car insurance. That's up 5.8% on last year. For Victorian drivers, the figure climbs to $2,940.

According to Canstar's latest data, switching policies saves the average customer $692 annually.

The short version: most people set and forget their insurance. It auto-renews, the premium creeps up, and nothing changes. A 20-minute comparison can save you close to $700.

If you hold a car loan, you're required to keep comprehensive cover anyway. Might as well make sure you're not overpaying for it.

Also from the Gusto Financial Group

→ Gusto Home Loans — We do for home loans what we do for car finance. Whether you're buying, refinancing, or just want to know your borrowing power, our team compares options across a massive lender panel.

→ Gusto Auto — Our Brisbane-based used car dealership. Buy a quality used car directly from us and let Gusto Finance handle the loan.

→ Gusto Cash — Flexible personal cash loans for when life happens outside of a standard car or home loan.

The Gusto Finance Team

1130 Kingsford Smith Dr, Eagle Farm QLD 4009
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