Truck Loan Calculator (Australia)

How the payment is worked out

The amount financed is the truck price plus any tax and fees you roll in, minus your deposit and trade-in. With no balloon, each monthly payment is P × r ÷ (1 − (1 + r)−n), where P is the amount financed, r the monthly rate and n the number of months.

A balloon (also called a residual or final payment) is a lump sum left owing at the end. Because you don’t repay that part until the last month, it lowers every monthly payment, but you pay interest on it for the whole term, so total interest goes up.

How to get truck finance in Australia, step by step

1. Hold the right licence class. LR for trucks over 4.5 t up to 8 t GVM, MR for two-axle rigid trucks over 8 t, HR for rigid trucks with three or more axles, HC for prime movers with a semi-trailer and MC for B-doubles and road trains. Licence classes are the same in every state.
2. Get an ABN and register for GST (needed to claim GST credits and for most commercial lending). Low-doc lenders often want an ABN that is at least 1–2 years old.
3. Choose the finance type: chattel mortgage (you own the truck from day one), commercial hire purchase, finance lease or a consumer loan if it’s not for business.
4. Decide on a balloon. Many lenders allow 20–40% depending on the term and the truck’s age. It lowers repayments but leaves a lump sum to pay or refinance.
5. Get quotes and apply through a broker or lender with the documents below. Before buying used, search the PPSR for money owing.
6. Register and insure the truck with the lender noted as an interested party, then settle.

Documents you need for truck finance in Australia

You (each director or applicant)

• Driver’s licence (front and back) with the right heavy vehicle class
• Medicare card or passport as a second ID
• Residential address history and contact details
• Asset and liability statement (your home, other loans and credit cards)
• Signed privacy and credit check consent; a director’s guarantee for companies

Your business

• ABN, plus ACN and company details if you have a company
• GST registration
• Trust deed if you buy through a trust
• Contracts, a subcontract agreement or work letters, especially for new businesses
• A signed business-purpose declaration (business loans fall outside the consumer credit laws)

Income: full doc

• Last two years of business and personal tax returns with Notices of Assessment
• Financial statements (profit and loss and balance sheet)
• Recent bank statements, usually 3–6 months
• ATO portal statement showing no tax debt or a payment plan

Income: low doc

• Last 12 months of BAS
• Or 6–12 months of business bank statements
• Or an accountant’s declaration of income
• ABN registered for at least 1–2 years (some lenders accept less with a bigger deposit)

The truck

• Tax invoice from the dealer, or a private sale agreement with the seller’s details
• VIN, year, make, model, kilometres and GVM
• Registration papers and a roadworthy or heavy vehicle inspection for a used truck
• PPSR search showing no money owing
• Comprehensive insurance with the lender noted as interested party

Rates, balloons and GST

Truck finance rates are usually fixed. Established ABN holders with good credit and a newer truck get the sharpest rates; low-doc, older trucks and bad credit cost more. Many deals need no deposit. On a chattel mortgage a GST-registered business can usually claim the full GST in the price on its next BAS, and claim interest and depreciation as deductions. Stamp duty on heavy vehicles is set by each state, commonly around 3%.