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It won't cost you a cent to compare a range of commercial finance options through Savvy, enabling you to come back at any time.
You can compare finance offers through a range of trusted Australian providers, giving you more confidence in the process.
You can fill out our simple online form and we'll get to work comparing offers from our commercial partners to find the best for your business.
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When you’re in the business of hauling heavy-duty plant and equipment, you need a truck to match. That’s where a cashflow-positive, tax-effective truck finance deal through Savvy can help you out.
Whether you’re looking to buy one for your small business or lease a fleet for your larger-scale operation, we’ll compare your options among our wide panel of partners and connect your business with the most suitable deal for your needs. Get a free, no-obligation quote today!
What are my truck finance options?
When it comes to financing your truck, there are several options to choose from. These include:
Chattel mortgage
These are a type of secured loan for the purchase of a truck, with the truck itself serving as collateral. Under a chattel mortgage, you’ll own the truck from the start of your term, which you can then repay with fees and interest over between one and seven years.
The loan is only designed to be used for the truck itself, rather than any other business expenses. You may be able to borrow up to 100% of the purchase price of the truck, though some lenders will allow you to include on-road costs like insurance, registration and stamp duty.
Deposits of between 10% and 20% are mandatory in certain situations, such as if you aren’t a property owner, while residual payments are optional.
Finance lease
Alternatively, if you don’t wish to buy the truck outright, you can opt for a finance lease instead. With this agreement, you’ll essentially rent your truck for a set term of one to five years with interest and fees. These can either be fully-maintained (inclusive of on-road costs) or non-maintained (on-road costs excluded).
At the end of your term, you’ll have to pay a residual. Your options for dealing with this are:
- Pay the residual and buy the truck to end your lease
- Sell or trade in the truck to cover the residual and either end your lease or start a new one
- Refinance the residual and extend your current truck lease
Operating lease
The big difference between finance and operating leases is that they come without a residual, meaning you’ll simply return the truck to your leasing company at the end of the term. This option is the most common with companies dealing with fleets of trucks that want to turn them over on a more regular basis.
Like finance leases, these can be fully-maintained or non-maintained, with the latter option also being common for larger-scale operations due to the amount of time saved on admin.
Unsecured business loan
If the truck you want to buy is too old, in poor condition or doesn’t meet the other key criteria, you may have to settle for an unsecured business loan. These don’t require any asset as collateral, making them more widely accessible to businesses of all shapes and sizes.
These loans are among the quickest to process, with funds able to be turned around as soon as the same day in some cases and used however you like, not just for your truck. However, the interest and fees you’ll pay are higher than secured finance.
How do I compare truck finance deals?
There’s plenty to consider when comparing your options. Here’s what you should be thinking about before financing your truck:
- Consider your business’ needs: if you want to own your asset from the start, a loan will be the best option for you. However, for businesses looking to refresh their trucks every few years, leases are more suitable.
- Look at the interest and fees: one of the easiest ways to compare is to consider how much you’ll be paying in interest and fees. Even small differences can save hundreds, if not more, across your term.
- Make sure your business and truck are eligible: of course, there’s no use applying for something you won’t be approved for. Take the time to read through the eligibility criteria (which your Savvy consultant will do for you).
- Check available terms and borrowing limits: where possible, you should always look for a term over which your business can comfortably manage your repayments. If you’re looking for a loan, any minimum and maximum limits should also be considered.
When you apply with Savvy, we’ll handle the comparisons for you and help you find the best available offer from our panel of trusted partners.
What types of truck can I finance?
You’ll be able to buy or lease a wide range of trucks, both new and used and from dealerships, auctions or private sellers. These can include:
- Cab chassis
- Cement mixers
- Crane trucks
- Dump trucks
- Food trucks
- Prime movers
- Rigid trucks
- Semi-trailers
- Tow trucks
This is just a small selection of what you might be able to finance, so you can speak with one of our experienced consultants to find out more about what your options are for the truck (or trucks) you have your eye on.
What are the tax benefits of truck finance?
The tax benefits you can take advantage of as a business will depend on the type of finance you decide to go with. Here’s a rough breakdown of what you may be able to claim under each finance option:
Chattel mortgages and business loans
- Interest on the loan
- GST on the purchase of the truck
- On-road costs like insurance premiums, registration and servicing
- Depreciation of the truck
Finance and operating leases
- Truck lease payments
- On-road costs like insurance premiums, registration and servicing
- GST on the purchase of the truck (claimed by your leasing company)
- Depreciation of the truck (claimed by your leasing company)
As you can see, leases allow you to claim up to the full payment, while loans allow the interest to be claimed. However, you must only claim up to the business portion of your truck’s use.
If you use the truck to get around outside of commercial usage 5% of the time, for example, you must take this into account and only claim up to 95% of the eligible costs. Speak with your accountant or tax professional to understand what your business can and can’t claim.
How much can I borrow with a truck loan?
As mentioned, you may be able to borrow up to 100% or more of the purchase price of your truck with a loan. However, the maximum amount your business can be approved for will depend on a variety of factors, including:
- Whether your loan is secured or unsecured
- The value of your truck
- Your business’ turnover
- Your business’ assets and liabilities
- Your business’ credit score (and your personal credit score)
- Your business’ record repaying similar loans in the past
When you get a free quote through Savvy, we’ll take a look at your business and personal profiles and run them by our lender panel to see how much we can help you get approved for.
How to apply for a commercial loan with Savvy
Commercial loan eligibility and documentation
Your commercial finance options
Your truck finance questions answered
What is the difference between a hire purchase and a chattel mortgage?
The main difference between a hire purchase and chattel mortgage is which party takes ownership of the vehicle. Your financier “owns” the truck in a hire purchase, transferring to your business at the end of the term, whereas chattel mortgages allow you to own it from the outset.
Hire purchase agreements are very rarely available in Australia today, so loans and leases are the main commercial finance options here.
What other heavy plant can I finance through Savvy?
We finance forklifts, tankers, cranes and other heavy plant for heavy industry, construction, mining and more. Ask your experienced Savvy consultant for more.
Will my truck loan interest rate be fixed or variable?
In most cases, the interest rate on your chattel mortgage will be fixed, meaning it’ll stay the same from the start until the end. This is better for budgeting, as your business’ repayments will remain the same each fortnight or month. There may, however, be limited options available with variable rates. Speak with your Savvy consultant about your options when you apply with us.
How do residual payments impact the cost of truck loans?
Having a residual payment at the end of your truck loan can reduce your ongoing repayments, but the amount you’ll pay in interest will increase compared to a chattel mortgage without a residual. This is because your loan balance will be reducing to your residual value (for example, $10,000) instead of $0, meaning they’ll decrease at a slower rate and stay higher for longer. It’s important to weigh up whether it’s worth having before you apply.
Can I still apply for finance if my business has bad credit?
Yes – we’re partnered with a vast range of commercial lenders, some of whom specialise in working with businesses who’ve struggled with their credit in the past. Whether you have poor personal or business credit, we’ll review your application and see whether any of our lenders can approve it.
My business is seasonal – can I apply for finance?
Yes – we help our customers find truck finance deals tailored to their needs. You can make payments to a special schedule agreed upon with your financier that keeps the cost manageable for your business.
Can I pay off my truck finance early?
Yes – however, you’ll likely be required to pay fees for completing your payments ahead of schedule, whether on a chattel mortgage or lease. You should check the terms and conditions of your agreement before you sign your contract so you’ll know exactly what you’ll be paying. If you take out an unsecured business loan, though, these often come with free additional repayments.
Will I be able to apply as a sole trader?
Yes – whether you’re a sole trader running your small business or the head of a big transport company, we’re here to help you find the right truck finance deal to suit your needs.
