How to finance trucks, utes and vans for a growing business in Australia

Key takeaways:

  • Vehicle finance is growing fast: In Australia, over $11 billion was lent for commercial vehicles in 2023, with strong demand from trades, couriers, and logistics businesses.
  • Flexible options are available: Choose from chattel mortgages, finance leases, novated leases, or operating leases depending on your cash flow and tax strategy.
  • Deposits and interest rates vary: Expect deposits from 0–30%, and current commercial vehicle finance rates between 6.5% and 11.5% p.a., based on business creditworthiness.
  • Tax benefits and GST advantages: Chattel mortgages let you claim GST upfront and depreciation over time, improving cash flow.
  • Tailor your loan: Finance terms can range from 12 to 84 months, with balloon payments to reduce monthly outgoings.

Introduction: Why vehicle finance matters for growing businesses

If your business relies on wheels to keep operations moving—whether you're delivering parcels, hauling equipment, or running mobile services—having access to the right vehicles is critical. But buying a new ute, van or truck outright can tie up vital working capital. That’s where smart vehicle financing comes in. In this guide, we’ll show you how to finance commercial vehicles in Australia, how to choose the right finance product for your business, and how to maximise cash flow and tax benefits.

Types of vehicle finance for Australian businesses

There are several finance structures available for businesses looking to purchase commercial vehicles:

1. Chattel mortgage

The most popular option for small businesses in Australia.

  • You own the vehicle outright from day one
  • GST on the purchase price is claimable upfront if you're GST-registered
  • Interest and depreciation are tax deductible
  • Suitable for ABN holders using vehicles mainly for business

2. Finance lease

Ideal for businesses wanting flexibility without upfront ownership.

  • The lender owns the vehicle, and you lease it over an agreed term
  • Payments are fully deductible as business expenses
  • Option to buy at the end of lease

3. Operating lease

Often used for short-term or fleet upgrades.

  • Vehicle is rented, not owned
  • No balance sheet impact
  • All maintenance may be included
  • No residual payment at end of term

4. Novated lease (for employees)

Useful if you’re offering staff salary-packaged vehicles.

  • Agreement between you, the employee and the financier
  • Payments are made from pre-tax salary
  • Can be used for both work and private vehicles

Operating cost considerations: don’t forget the ongoing expenses

When budgeting for a financed vehicle, don’t stop at the monthly repayment. The true cost of owning a ute, van, or truck goes well beyond the sticker price. Understanding your operating costs will help you avoid cash flow surprises down the track.

Key expenses to factor in:

  • Fuel consumption – Diesel or petrol, fuel costs will vary by vehicle class. For example, a small van may use 8L/100km vs 18L/100km for a heavy-duty truck.
  • Insurance premiums – Comprehensive cover on commercial vehicles can range from $1,200 to $3,500 per year, depending on usage, location, and vehicle value.
  • Maintenance and servicing – Budget for regular servicing (approx. $500–$1,200/year per vehicle), and factor in higher costs for ageing or used vehicles.
  • Tyres and parts – Replacing all tyres on a light truck might cost $1,000+, and wear-and-tear parts can add up quickly.
  • Depreciation – Your vehicle’s resale value impacts your long-term cost. Commercial vehicles can depreciate by 15–25% annually.

Tip: Always ask lenders if they offer bundled financing for add-ons like insurance, maintenance plans, or extended warranties. It may simplify cash flow.

EV and hybrid commercial vehicle financing: get ahead of the curve

With rising fuel prices and emission standards tightening, more Australian businesses are looking into electric and hybrid commercial vehicles.

According to the Electric Vehicle Council, electric van and light truck sales increased 73% in 2024. While the upfront cost is typically higher, financing can help spread it out — and there are unique advantages:

  • Lower running costs – Fewer moving parts, no oil changes, and cheaper charging.
  • Finance options – Some lenders offer EV-specific loans with lower rates, longer terms, or balloon payments to help match total cost of ownership.
  • Government incentives – As of 2025, some states offer registration discounts and stamp duty waivers for eligible commercial EVs.
  • Green fleet reputation – Going electric can give your brand a competitive edge with eco-conscious clients.

Tip: Ask your broker about asset-backed loans specifically tailored for EVs, and confirm the battery warranty (often 8–10 years).

Tax incentives and deductions: take full advantage

Smart vehicle financing can also bring major tax-time benefits. Here’s how:

  • Instant Asset Write-Off – As of the latest ATO update, eligible small businesses can write off the full value of a new or used commercial vehicle under the $20,000 threshold.
  • Temporary full expensing – Previously available under COVID-era stimulus, this has now phased out, but replacements may exist depending on current policy updates.
  • GST Credits – If you're registered for GST, you may be able to claim the GST on the vehicle's purchase price as a credit.
  • Deductible interest and running costs – Interest on your loan, fuel, repairs, and insurance are often tax-deductible.

Used vs new vehicle financing: what’s the difference?

Buying second-hand? It’s often more affordable upfront, but it can impact your finance options and long-term value.

New vehicle financing:

  • Lower interest rates (due to lower risk for the lender)
  • Longer loan terms (up to 7 years)
  • Full manufacturer warranties
  • Potential access to EV incentives or tax write-offs

Used vehicle financing:

  • May have higher rates or shorter terms (3–5 years)
  • Requires a vehicle inspection or roadworthy certificate
  • Limited warranty (or none), unless certified pre-owned
  • Lower upfront costs, but possibly higher ongoing maintenance

How much can you borrow?

Loan amounts vary based on your business profile, credit history and vehicle type:

  • Light commercial vehicles (utes, vans): $20,000 to $75,000
  • Medium trucks: $40,000 to $120,000
  • Heavy trucks or fleets: $100,000 to $500,000+

Up to 100% finance may be available with strong financials. Most lenders will offer 70–90% of the vehicle’s value.

Loan terms and balloon payments

  • Loan durations: 1–7 years (most common: 3–5 years)
  • Balloon (residual) options: 10–50% of vehicle value
  • Balloon payments reduce monthly repayments, helpful for cash flow

Tax and GST advantages

Financing vehicles can unlock valuable tax and GST benefits:

  • GST claim on vehicle purchase (if financed via chattel mortgage)
  • Claim depreciation annually (usually 15–30%)
  • Interest payments are tax-deductible
  • Operating lease payments are fully deductible

Consult with your accountant to ensure you claim correctly.

Tips to get approved faster

  • Prepare your financials: 12–24 months of BAS or financial statements
  • Get a credit check before applying
  • Choose a vehicle within your business's realistic price range
  • Consider using a broker to access specialist lenders

FAQs: Truck, ute and van finance in Australia

Q: Can I finance a second-hand vehicle?

Yes, most lenders allow vehicles up to 5–7 years old. Some extend this to 10 years if in good condition.

Q: Do I need a deposit?

 Not always. Many lenders offer 0–20% deposit options, depending on your credit and financials.

Q: What documents do I need to apply?

 Usually:

  • ABN registration
  • Driver’s licence
  • Recent BAS or tax returns
  • Quote or invoice for the vehicle

Q: How fast can I get approval?

Approvals can be as quick as 24–48 hours with complete documentation.

Q: Can I upgrade the vehicle before the term ends?

Yes, if your agreement allows for early termination or refinancing.

Conclusion: Drive growth with the right finance

Whether you’re expanding a delivery fleet, replacing ageing vehicles or scaling up your operations, financing trucks, utes or vans can give your business the edge—without draining your working capital. Choose a finance product that fits your cash flow, take advantage of tax benefits, and negotiate terms that work for your growth. Need help finding the best deal? A finance broker can guide you through lender options tailored to your industry.