Truck Loans

Commercial truck loan interest rates typically range from 5.49% to 12.99% p.a. depending on the vehicle type, age, loan amount, and your business financials. New trucks from established manufacturers (Isuzu, Hino, Fuso, Toyota, Ford) generally attract the best rates from 5.49-7.99% p.a. when financed through chattel mortgage structures. Quality used trucks under 10 years old typically get 6.99-9.49% p.a. Older commercial vehicles (12+ years) may require rates from 9.99-12.99% p.a. due to higher depreciation risk. Light commercial vehicles (utes, vans) under $100,000 often qualify for better rates than heavy trucks because they have broader resale markets. Your business trading history significantly impacts rates — established businesses (2+ years profitable trading) get the best rates, while startups or businesses with recent losses pay 2-4% more. Prime movers and specialty vehicles (crane trucks, concrete pumps) may attract slightly higher rates (7.49-10.99% p.a.) due to specialist markets and lower resale liquidity.

Chattel mortgage and finance lease are the two main commercial vehicle finance structures, each with different tax and ownership implications. CHATTEL MORTGAGE: You own the truck from day one (lender has security interest). You claim interest AND depreciation as tax deductions based on business use percentage. GST-registered businesses claim GST upfront on the full purchase price. You're responsible for all maintenance, insurance, and registration. At loan end, you own the truck outright (or pay balloon and own it). Best for businesses wanting maximum tax deductions and asset ownership. FINANCE LEASE: The lender owns the truck, you lease it for business use. You claim 100% of lease payments as tax deductions (simpler accounting). You claim GST monthly on each lease payment, not upfront. Lease payments are off-balance-sheet (doesn't show as debt). At lease end, you can buy the truck for residual value, re-lease, or return it. Best for businesses wanting to preserve capital, maintain equipment flexibility, or keep debt off balance sheets. Most truck buyers choose chattel mortgage for maximum tax benefits and ownership.

Deposit requirements for commercial truck finance typically range from 10-30% of the purchase price depending on vehicle type, age, and your business strength. New trucks from authorized dealers usually require 10-20% deposits if you have established business trading history (2+ years) and good credit. Quality used trucks in good condition may need 15-25% deposits. Older trucks (10+ years), imported trucks, or specialty vehicles typically require 20-30% deposits. Startup businesses (under 12 months trading) often need 25-30% deposits to compensate for limited trading history. Some specialist lenders offer 100% truck finance (no deposit) for established businesses with strong financials, though rates are typically 1.5-2% higher. If you're trading in an existing commercial vehicle, the trade-in equity counts toward your deposit. Light commercial vehicles (utes, vans) under $80,000 sometimes qualify for lower deposits (10-15%) because they have strong resale markets.

Yes — commercial vehicle finance is one of the most tax-effective borrowing structures in Australia if the truck is used for business purposes. Through a CHATTEL MORTGAGE, you can claim: (1) Interest payments are 100% tax deductible based on business use percentage. For example, if your truck is used 90% for business, you claim 90% of all interest. (2) Depreciation (capital allowance) — you claim depreciation on the truck's value each year. Trucks under the instant asset write-off threshold (currently $20,000) can be claimed 100% in year one. Trucks over this amount use diminishing value depreciation (typically 15-25% per year for commercial vehicles). (3) Running costs (fuel, insurance, registration, maintenance, tyres) are tax deductible based on business use. (4) GST — if you're GST registered, you claim GST on the purchase price upfront (improves cash flow by $7,000-$40,000 depending on truck price). For a $100,000 truck used 100% for business, you might claim $5,500 in interest year one, $20,000 in depreciation, plus $15,000 in running costs = $40,500 in tax deductions. At 30% company tax rate, this saves $12,150 in tax annually. The instant asset write-off is particularly powerful for tradies and small businesses — a $65,000 HiLux bought for business can be 100% written off against business income in year one (if eligible), creating immediate tax savings of $19,500 at 30% tax rate.

Yes, but expect higher deposits (25-30%) and slightly higher rates (1.5-3% more) compared to established businesses. Most commercial lenders prefer 12+ months trading history, but specialist startup lenders approve newer businesses (even 3-6 months) if you have: (1) strong business plan and cashflow projections showing ability to service repayments, (2) previous industry experience (e.g., you worked as a truckie for 10 years, now bought your own rig), (3) existing contracts or letters of intent from customers, (4) director guarantees from individuals with strong personal credit and assets (property equity, savings). If you're an owner-driver buying your first truck (prime mover or rigid), some lenders structure finance around confirmed freight contracts — if you have a 2-year contract hauling for Toll or LinFox, that contract income can support the loan. Low-doc options are available for new businesses without full financials, using bank statements showing business deposits. Startup trucking businesses often lease initially (finance lease or operating lease) rather than buying, because it preserves capital and allows equipment upgrades as the business grows.

Balloon (residual) payments are extremely common in commercial truck finance because they significantly reduce monthly repayments, preserving cash flow for business operations. For example, a $150,000 rigid truck over 5 years at 6.99% p.a. with a 30% balloon ($45,000) costs $2,485/month versus $3,546/month with no balloon — saving $1,061/month ($12,732 annually). This extra cash flow can cover fuel, maintenance, insurance, or driver wages. Balloons make sense when: (1) you plan to trade the truck in 3-5 years (pay balloon from trade-in value), (2) you want maximum cash flow for business growth, (3) you expect the truck to retain strong value (quality brands like Isuzu, Hino hold 50-60% value after 5 years), or (4) you'll refinance the balloon when due. The risk is owing a large lump sum at loan end — you must refinance, pay cash, or trade the truck. The ATO sets maximum balloon amounts based on loan term (e.g., 5 years = max 50% balloon). Most trucking businesses use 20-40% balloons to balance cash flow with manageable residual. Avoid balloons on older trucks (10+ years) that may have limited value at loan end.

Yes, most commercial lenders finance used trucks up to 12-15 years old at time of purchase, with the vehicle being no more than 18-20 years old at end of the loan term. For example, financing a 2016 Isuzu NQR over 5 years means it'll be 13-14 years old when paid off — typically acceptable. Premium brands with strong reliability (Isuzu, Hino, Fuso, Toyota, Mercedes) may be approved older than budget Chinese imports. Very old trucks (15+ years) or heavily modified/rebuilt trucks often require unsecured business loans or asset-based lending with higher rates (9.99-14.99% p.a.). The truck must pass a mechanical inspection, have roadworthy certificate, and be in good structural condition. Some lenders require professional valuations for used trucks over $80,000 or older than 8 years. Ex-fleet trucks and government auction trucks can be excellent value but may require larger deposits (25-30%) due to unknown service history. Owner-drivers often buy 5-8 year old prime movers at $100k-$150k (versus $300k+ new) — these finance well with established lenders at 7.49-9.99% p.a. with 20% deposits.

Yes, commercial truck refinancing can save significant money if interest rates have dropped, your business financials have improved, or you want to access equity for business growth. You can refinance to: (1) get a lower interest rate (save $3,000-$10,000+ over remaining loan term), (2) extend the loan term to reduce monthly repayments and improve cash flow, (3) borrow extra to finance a second truck, trailer, or equipment upgrades, (4) restructure from finance lease to chattel mortgage for better tax benefits, or (5) consolidate multiple truck loans and equipment finance into one loan. The refinance process requires current business financials, truck valuation, and loan payout figure. Most lenders require at least $30,000 outstanding on the existing loan to make truck refinancing worthwhile. We work with {COMPANY.lenderCount} lenders who offer competitive truck refinance rates from 5.99% p.a. for quality vehicles with strong business profiles. Refinancing works particularly well for trucks 2-4 years old where you've built equity and your business is now more profitable than when you first bought the truck. Many owner-drivers refinance after 2-3 years to access equity for a second truck, expanding their fleet.