Most commercial trucks in Australia are financed through a chattel mortgage: the lender pays the dealer or seller, you own the truck from day one, and you repay the lender in fixed instalments over an agreed term. Because you're the registered owner immediately, the truck can start earning for your business straight away, and if your business is GST-registered you can generally claim the GST credit on the purchase in your next BAS rather than waiting for it to be paid off.
Repayments are usually weekly, fortnightly or monthly to match how the truck earns — freight and haulage income tends to land in similar cycles, so lenders are used to aligning the schedule with your cash flow. A balloon (residual) payment at the end of the term is common on truck finance because operators often trade in or refinance before a prime mover reaches the end of its productive life with one owner — it lowers the regular repayment in exchange for a lump sum due at the end.
New and used trucks are both financeable, and so are private-sale purchases (with an inspection step before settlement). The rate a lender offers depends on the truck's age, kilometres, your business's trading history and the loan term — the indicative rate in the calculator above is a starting point; your actual rate is set once a lender has assessed your application.
For a truck used in the business, the interest portion of chattel mortgage repayments is generally tax deductible, and the truck itself can typically be depreciated as a business asset. None of this is a substitute for advice from your accountant, who can confirm the treatment that applies to your entity and circumstances.
Road freight remains the backbone of how goods move around Australia, and that keeps steady demand running through truck finance — from owner-operators replacing a single prime mover to fleet operators adding tippers and rigids as contracts grow. Because trucks are a working asset rather than a discretionary purchase, most lenders on a broker panel like ours are set up to move quickly once the paperwork is in, comparing terms across dozens of options rather than the single rate a truck dealer's in-house finance desk can offer.
There's no fixed limit. What you can borrow comes down to the truck, your business and how the loan is set up. Lenders typically look at:
Worked example (example only, not a quote): Using the calculator's starting figures — a $120,000 truck, no deposit, a five-year term and a 20% balloon — the loan amount is $120,000. Your regular repayments pay off $96,000 of it plus interest, and the $24,000 balloon is due at the end of the term. Use the calculator above for your figures.
Five steps, from first enquiry to driving away.
Budget Finance is a credit representative (Credit Representative 565565) of Connective Credit Services Pty Ltd, Australian Credit Licence 389328. All applications are subject to the lender's assessment and approval.
Yes — the balloon/residual slider above sets the lump sum left at the end of the term, and your repayments update as you move it. A bigger balloon lowers the regular repayment but leaves more owing on the last day; drag it down to zero for no balloon at all. For more on how balloons work and your options when the term ends, read the balloon payments guide.
Send us an enquiry, have a short call with a broker, then send your ID, ABN details and bank statements or financials. Your broker matches you with a suitable lender from our panel and handles the application through to settlement. Have the truck details handy — price, year, kilometres and who you're buying from. Still shopping? Ask about a pre-approval so you know your budget before you commit.
Most applications need photo ID, an active ABN, and recent business bank statements or financials. You'll also need the truck details — a dealer invoice, or the seller's details for a private sale. Larger loans or newer businesses may need more, such as tax returns or details of your freight contracts. Your broker tells you exactly what the lender wants before anything is sent.
There isn't one standard truck loan rate — the lender sets your rate after assessing your application. It depends on the truck's age and condition, the term and balloon, your deposit, how long you've traded and your credit history. The rate in the calculator above is only a placeholder you can change. Your broker compares options across the panel once your details are in.
Yes, it's possible, but fewer lenders will consider a new business than an established one. Lenders want to see the truck will earn — for example a contract, regular work through a prime contractor, or years of driving before you started your own ABN. A deposit or trade-in can help. Your broker can tell you upfront which lenders consider new ABNs and what they'll ask for.
Yes — you can usually refinance an existing truck loan, or use a truck you own as security for new finance. Operators refinance to lower repayments, handle a balloon that's coming due, or free up cash tied up in a truck they own outright. The lender looks at the truck's current value and age, what's still owing, and how your business is going now. Check for early payout costs on your current loan first.
For most owner-operators a chattel mortgage is the usual choice, because you own the truck from day one. With a lease, the financier owns the truck and you pay to use it, often with an option to buy at the end. The right choice depends on how you want to handle GST, tax and ownership. Ask your accountant how each option affects your tax, then we can set up whichever suits.
You can, but truck finance is usually the better fit. With a chattel mortgage the truck itself is the lender's security, which tends to mean a lower cost and a term matched to the truck's working life. A general business loan isn't tied to the truck, so it's often priced higher. A business loan makes more sense when you also need money for fit-out, rego or working capital.
The lender sets the term, and the calculator above lets you test anything from one to seven years. The main limit is the truck's age: lenders typically want the loan finished before the truck gets too old, so an older truck often gets a shorter term. A longer term lowers each repayment but adds interest. Matching the term to how long you'll keep the truck usually makes the most sense.
It depends on the lender — but we have lenders on our panel who don't require a deposit at all.
A balloon (residual) lowers your regular repayment by leaving a lump sum owing at the end of the term, which suits operators who plan to trade the truck in or refinance before the balloon falls due. It means paying more interest overall for lower repayments along the way — the calculator above lets you compare the trade-off directly.
For a business-use truck financed via a chattel mortgage, the interest component of your repayments is generally tax deductible, and depreciation can typically be claimed on the asset. Confirm your specific position with your accountant — this calculator gives a repayment estimate only, not tax advice.
No dealer requirement at all — a dealer sale, private sale, buying from a friend or relative, even a Facebook Marketplace listing, are all fine. Private sales just involve a couple of extra verification steps that we handle for you before settlement (we use a remote vendor-photograph process).
Straightforward applications from an established business are in most cases pre-approved within 24 hours. More complex deals (new entities, larger prime movers, non-standard structures) take longer while we compare terms across the panel.
They're all financed the same way — lenders assess the asset's value, age and usage rather than its body type. Where it matters is resale value and loan term: rigids and tippers often carry shorter terms than prime movers because of how hard they're worked, which can affect the balloon a lender is comfortable with.
Commercial truck finance is written to a business (sole trader ABN, company or trust), not to an individual for personal use. If you're financing your first truck as a new operator, lenders will typically want to see the ABN registered and, ideally, some track record or industry experience.