Truck Finance

How can I finance my truck purchase?

When it comes to financing your truck, there are several options to choose from. These include:

Chattel mortgage

A chattel mortgage is a type of secured loan for the purchase of business assets like trucks, 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 one to seven years, with the option to make a balloon payment at the end.

Finance lease

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, then pay a residual to purchase the car at the end of the lease.

Operating lease

With an operating lease, you also rent your truck over a set period – but then return it to your leasing company at the end of the term. This option is common with companies that want to regularly refresh their fleet. Operating leases are usually fully maintained, meaning running costs are included in your regular payments.

Unsecured business loan

If the truck you want doesn’t meet the other key criteria, you may be eligible for an unsecured business loan. Unlike a chattel mortgage, these loans don’t require any collateral, making them more widely accessible to businesses of all shapes and sizes. These loans are quick to process, but often offer lower amounts with higher interest and fees. 

What will my truck finance interest rate be?

The average truck loan interest rate available through Savvy for a self-employed applicant with a good credit score is 10% p.a. as of June 2025, with rates for this profile ranging from 6.69% to 18.99% p.a. This is based on a five-year loan of $80,000 for a new truck.

However, the truck finance interest rate you’ll actually get will depend on several factors, including:

• The type of finance you choose: you’ll pay interest on a chattel mortgage, finance lease or unsecured business loan, but rates differ across products. For example, a chattel mortgage may offer lower rates than an unsecured loan, while lease rates depend on the term and residual.
• Your business: the longer you’ve been trading and the stronger your financials, the more favourable your rate is likely to be. Lenders will consider your income, GST registration, existing debts and assets.
• Your personal profile: being a homeowner, having a solid credit score and demonstrating financial stability will help you qualify for better rates.
• Your truck: new trucks tend to qualify for lower rates than used ones, as do standard-use trucks (like general delivery vehicles) compared to customised or highly specialised vehicles, which may be harder for lenders to resell.
• Your lender: each lender sets their own rates based on their assessment of risk, costs and customer profiles.

How much will my truck finance deal cost?

The total cost of your truck finance will depend on several factors, including the finance product you choose, the amount you borrow, the loan or lease term and whether there's a balloon or residual payment involved.

To help you understand how these can affect what you pay, we’ve compared three common finance types. Calculations are based on a $100,000 truck (including GST) used 95% for business purposes, financed over five years at an 8% interest or lease rate, with a 28.13% balloon/residual value (in line with ATO guidelines).

Figures are estimates only and exclude fees or insurance costs. Actual repayments may vary by lender and borrower profile.

What trucks 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:

Truck finance tax benefits

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.

Instant asset write-off

If your business has an annual turnover of less than $10 million, you may be eligible for the instant asset write-off scheme, which the Australian Government has extended into the 2025–26 financial year. This allows you to claim an immediate deduction for the business portion of a commercial asset costing up to $20,000. While most trucks exceed this threshold, some smaller used models might qualify.

How to apply for truck finance through Savvy

1. Complete our online form

   Start by filling out Savvy’s simple online application. Let us know how much you’re looking to borrow and key details about your business such as its name, ABN, size and annual turnover along with your personal information.

2. Upload your documents

   To support your application, you’ll need to supply a variety of documents, which lenders will use to assess your business’ capacity to service the truck loan.

3. We'll assess your profile

   Once we’ve reviewed your application, our team of brokers will compare offers from a panel of trusted lenders to find suitable options for your needs. Given the variables with equipment finance, we’ll contact you to walk through your choices and explain the terms.

4. Finalise your application

   When you’re ready, we’ll help you complete the application and submit it to the lender. If everything checks out, you may receive formal approval within 24–48 hours.

5. Sign the contract and access your funds

   Once approved, you’ll sign the loan agreement. Your Savvy broker will coordinate the settlement and arrange for the funds to be paid directly to the supplier, or to you, depending on the lender’s process.

Business lenders you can compare

Which truck finance option is best for my business?

The right finance product will depend on how your business operates and what you need from your truck.

• If you want to own the truck from day one…
  A chattel mortgage is likely the best option. You’ll take full ownership at purchase, which means you can claim depreciation and interest expenses, and potentially benefit from asset write-offs.
• If you want lower upfront costs but still plan to own the truck…
  A finance lease could be a good fit. You lease the truck over a set term, then pay a residual amount at the end to take ownership. This lets you keep monthly costs down while working towards eventual ownership.
• If you want to regularly upgrade your trucks…
  Look at an operating lease. This allows you to return the truck at the end of the term with no residual to pay, giving you the flexibility to swap out trucks every few years. 
• If you’re buying an older or lower-value truck…
  An unsecured business loan could be an option, particularly if the vehicle doesn’t qualify for secured finance. This may suit new or small businesses with less borrowing power, but expect higher interest rates and repayments compared to secured loans.

If you’re still not sure which option is the best fit, one of our experienced brokers can walk you through your choices and help tailor a solution to your business.