Truck Finance in Australia

What lenders will finance

Almost any truck used to generate business income: prime movers, rigid trucks, tippers, agitators, crane trucks, tilt trays, refrigerated bodies and vocational trucks. New trucks get the sharpest pricing. Used trucks are routinely financed too, but most lenders apply an age-at-end-of-term rule — commonly the truck must be no older than roughly 15–20 years when the loan finishes, so a 12-year-old prime mover may be limited to a shorter term.

The standard structure: chattel mortgage

Most Australian truck purchases are financed with a chattel mortgage: you own the truck from day one, the lender registers its interest on the PPSR, and you claim depreciation and interest as deductions. If you're GST-registered you can generally claim the GST in the purchase price on your next BAS rather than dribbling it back over the term (confirm treatment with your accountant).

Balloon payments

A balloon (residual) of 20–40% is common on trucks. It lowers monthly repayments and roughly matches the truck's value at term end, when you can pay it out, refinance it, or trade the truck. The trade-off: you pay more total interest, and you must have a plan for the balloon. Model it in our repayment calculator.

Terms and deposits

• Terms: 2–7 years; 5 is the sweet spot for most used trucks.
• Deposit: often none required for established businesses — see no-deposit truck finance. Newer ABNs or older assets may need 10–30%.
• On-costs: many lenders will roll registration, stamp duty (where applicable), tyres or a body build into the loan.

Used truck finance

Used truck loans are the bread and butter of this market — most owner-operators buy 3–10 year old gear. Pricing sits slightly above new-truck rates, the age-at-end-of-term rule sets your maximum term, and private sales add a PPSR check and inspection step that brokers handle routinely. The structure and tax treatment are identical to new: chattel mortgage, optional balloon, GST claimable if registered. Model a used deal in the truck loan repayment calculator before you negotiate — knowing your walk-away repayment is leverage.

Rent-to-own truck finance

Rent-to-own arrangements suit a narrow slice of buyers — usually those declined for conventional finance — and cost substantially more. If you consider one: confirm who holds title, get the buyout schedule in writing, and check the PPSR before paying anything. Many operators who assume they can only rent-to-own actually qualify for bad credit truck finance at materially better terms, and refinancing out of an existing rent-to-own into ownership is a common brokered deal.

What you'll need to apply

• ABN and photo ID; most lenders prefer 12+ months trading and GST registration — if not, see truck finance for new businesses
• Details of the truck (dealer invoice, or private sale details + PPSR check)
• Full-doc deals: recent financials or tax returns. Low doc deals: none — see low doc criteria
• Bank statements (commonly 3–6 months) for newer businesses

Five mistakes that cost truck buyers money

1. Taking dealer finance without comparing. Dealer F&I desks are convenient but rarely the sharpest rate for used trucks.
2. Ignoring the age-at-term rule. Financing an older truck over 7 years may be impossible; over 4 it's fine — structure first, then shop.
3. Oversized balloons with no exit plan. A 40% balloon on a hard-worked tipper can exceed its value at term end.
4. Signing personal guarantees without reading them. Standard for small pty ltd borrowers, but know what you're guaranteeing.
5. Applying with multiple lenders directly. Repeated credit enquiries hurt your file. Brokers place the deal once, with the right lender.

Frequently asked questions