Truck finance in Australia is mostly business lending: you borrow through your ABN, the truck is the security, and the loan falls outside the consumer credit laws as long as it’s for business use. That makes it faster and more flexible, but lenders still need to see you can drive the truck, that your business is real and that the income covers the repayments.
Licence classes
| Class | Vehicles |
|---|---|
| LR (light rigid) | Rigid trucks over 4.5 t and up to 8 t GVM |
| MR (medium rigid) | Two-axle rigid trucks over 8 t GVM |
| HR (heavy rigid) | Rigid trucks with three or more axles over 8 t GVM |
| HC (heavy combination) | Prime movers with a semi-trailer, or rigid trucks towing a trailer over 9 t GVM |
| MC (multi-combination) | B-doubles and road trains |
Chattel mortgage, hire purchase or lease?
| Type | Who owns it | GST | Notes |
|---|---|---|---|
| Chattel mortgage | You, from day one; lender holds security | Claim the full GST on your next BAS | The most common choice for GST-registered businesses |
| Commercial hire purchase | Lender, until the final payment | Usually claimed upfront too | Similar cost to a chattel mortgage |
| Finance lease | Lender; you lease it for a residual | GST on each rental | Payments can be fully tax-deductible |
| Operating lease / rental | Lender | GST on each rental | Off balance sheet, hand back at the end |
| Consumer car loan | You | No GST claim | Only for non-business use |
Step by step: getting truck finance
- Hold the right licence class for the truck.
- Have an ABN (ideally 1–2 years old for the widest choice of lenders) and register for GST.
- Pick the truck and get a tax invoice or private sale agreement; for a used truck, search the PPSR to check there’s no money owing.
- Choose the finance type, term (up to 5–7 years) and balloon.
- Apply through a broker or lender with the documents below.
- Insure the truck with the lender noted as interested party, register it and settle.
The complete documents checklist
About you (each applicant, director or guarantor)
- Driver’s licence, front and back, with the right heavy vehicle class
- Second ID: Medicare card or passport
- Residential address for the last three years
- Assets and liabilities statement: property, vehicles, savings, loans and credit card limits
- Signed privacy and credit check consent
- Director’s guarantee if you borrow through a company
- Proof of home ownership (rates notice or mortgage statement), which helps on low-doc deals
About the business
- ABN, plus ACN and ASIC company extract for a company
- GST registration details
- Trust deed and trustee details if you buy through a trust
- Contracts, subcontract agreements or work letters (especially for new ABNs)
- Signed business-purpose declaration
- Any existing finance contracts (commitments schedule)
Full-doc income evidence
- Last two years of business tax returns and financial statements
- Last two years of personal tax returns and Notices of Assessment
- Recent management accounts if the last return is old
- 3–6 months of business bank statements
- ATO integrated client account or portal statement showing no tax debt, or a payment plan
Low-doc income evidence (one of)
- Last 12 months of BAS
- 6–12 months of business bank statements
- An accountant’s letter confirming your income and ability to repay
- A signed income declaration
About the truck
- Dealer tax invoice, or private sale agreement with the seller’s ID and bank details
- VIN, make, model, year, kilometres and GVM
- Registration papers and a roadworthy or heavy vehicle inspection certificate for a used truck
- PPSR search certificate showing no money owing
- Comprehensive insurance with the lender noted as interested party
- Trade-in details and payout letter on any existing loan
Full doc vs low doc
Full-doc loans use tax returns and financial statements and get the best rates. Low-doc loans are for self-employed borrowers whose returns don’t show their real position yet, and use BAS or bank statements instead. Lenders usually cap low-doc loans at a lower amount, prefer an ABN of at least 1–2 years, and may want a deposit or property backing. Expect a slightly higher rate.
Worked example: a $180,000 prime mover
| Amount | |
|---|---|
| Price | $180,000 |
| Deposit | $0 |
| Rate and term | 8.5%, 60 months |
| Balloon (20%) | $36,000 |
| Monthly repayment | $3,209.38 |
| Total interest | $48,563 |
| Finance cost per km at 12,000 km a month | $0.267 |
Without the balloon the repayment would be $3,692.98. See how balloons work or run your own numbers.
GST, stamp duty and tax
On a chattel mortgage a GST-registered business can usually claim the GST in the price on its next BAS, which many owners use to pay down the loan or fund the first repayments. Stamp duty on registering a heavy vehicle is set by each state and is commonly around 3%. Interest and depreciation are usually deductible for the business share of use. The instant asset write-off covers assets under its threshold ($20,000 from 1 July 2026), so most trucks are depreciated instead, often through the small business pool. Ask your accountant.
Frequently asked questions
Can I get truck finance with a new ABN?
Yes, some lenders accept a new ABN with industry experience, a contract and good credit. Expect a deposit or a lower balloon.
Do I need a deposit for truck finance?
Often not, for established ABNs with good credit. New ABNs, low-doc and bad credit applications usually need 10–20%.
How old can a truck be?
Lenders usually limit the truck’s age at the end of the term, commonly to around 15–20 years for heavy trucks, depending on the lender.
Is truck finance regulated by the NCCP?
Not when it’s predominantly for business. You sign a business-purpose declaration and the consumer credit protections don’t apply.
