Utes, vans, trucks and fleets
Business vehicle and truck finance
Finance a work ute, a delivery van, a prime mover or a whole fleet, with the vehicle itself as the security.
Vehicle Finance at a glance
- Amount
- $10,000 to $2,000,000
- Term
- 12 to 60 months, and up to 84 months on some heavy trucks
- Security
- The vehicle, registered on the PPSR. A director's guarantee is standard. No property security needed.
- Time to funding
- Dealer sales often settle 24 to 48 hours after approval. Private sales take 3 to 5 business days.
- Typical use
- A ute for a trade, a van for deliveries, a prime mover and trailer, replacing an ageing fleet
- What you'll need
- The vehicle details and a quote or tax invoice, ABN, Australian photo ID, and 6 months of bank statements
What it is
What is business vehicle finance?
Business vehicle finance is equipment finance applied to something with a rego plate. The vehicle secures the loan, which keeps the rate below unsecured lending and lets the term stretch to five years or more. The same three structures apply - chattel mortgage, finance lease and commercial hire purchase - and the same question decides which one you want: who should own it, and when do you want the GST back.
The vehicle has to be predominantly for business use. That is what makes it commercial finance rather than a consumer car loan, and it is why the assessment reads your ABN and bank statements rather than your payslips. Balloons are common on vehicles because the resale market is deep and predictable.
Worked example
A worked example
- A plumbing business buys a $65,000 dual-cab ute from a dealer on a chattel mortgage over 60 months with a 30% balloon.
- The balloon is $19,500, due at the end of month 60.
- At an indicative 8% p.a. the monthly repayment is about $1,053.
- The $5,909 of GST inside the price is claimed on the next BAS.
- At the end of five years the business pays the $19,500, refinances it, or trades the ute in and puts the equity into the replacement.
Rounded. A balloon lowers the monthly figure and raises the total cost - set it at or below what the ute will genuinely be worth in five years.
Is this right for you?
Is business vehicle finance right for you?
Good fit if…
- The vehicle is mainly for business use and you have an active ABN.
- You want to keep your cash for wages and stock rather than sink it into a ute.
- You want the GST back on the next BAS instead of tied up in the purchase.
- You are replacing a vehicle that is costing you more in downtime than a repayment would.
Probably not if…
- The car is for private use. That is a consumer loan, assessed on your personal income under different rules.
- You are buying an unusual import or a repairable write-off. Most lenders will not touch it and the ones that do price it accordingly.
- You cannot cover the balloon at the end and have no plan to refinance or sell.
- You need cash for something other than the vehicle. This money goes to the seller, not to you.
What it costs
What business vehicle finance costs
Vehicles price better than most equipment because the resale market is deep. Where you buy moves the rate as much as anything.
- Interest rate
- Our panel prices business finance between 6% and 20% p.a. Vehicle finance generally sits in the lower half of that band. New from a dealer prices sharpest, private sales price highest.
- Establishment fee
- A one-off documentation fee at settlement, usually able to be financed with the vehicle. It runs $395 to $695 on a car, ute or light commercial, and up to about $1,200 on heavy commercial.
- Ongoing fees
- A small monthly account fee is common, plus PPSR registration at cost. The account fee is usually $4.95 to $9.95 a month, and PPSR registration is $6 to $15 depending on the registration period.
- Paying it out early
- These are fixed rate contracts, so an early payout is a break calculation rather than the remaining balance. Get a written payout figure before you agree to trade the vehicle in. Most of the panel discounts the rentals still to run back to present value and adds a payout fee of about $100 to $400.
Bizzloans is a broker, not a lender. The lender that funds your deal pays us a commission, which we disclose to you. You pay us nothing to compare.
Eligibility
Who can apply
- A valid ABN
- Current Australian photo ID
- In business more than 6 months
- Monthly turnover above $6,000
- Bad credit considered
- The vehicle must be predominantly for business use
Don’t meet these? Call us — we have lenders for most situations, and we’ll tell you straight if we don’t.
Book a callWhat you'll need
What you’ll need
No documents
To get a quote
- Nothing. The vehicle, the price, whether it is new, used or private, and your turnover is enough.
- No credit file is pulled to compare.
Once you pick a lender
To settle
- The dealer tax invoice, or the seller's details on a private sale, showing the VIN
- Your ABN and a current Australian photo ID for each director
- 6 months of business bank statements
- Proof of comprehensive insurance with the lender noted as an interested party
- For private sales: a PPSR clearance, the seller's bank details and sometimes an inspection report
How it works
How it works
Same day
Send the vehicle details
Make, model, year, kilometres, price, and whether it is coming from a dealer or a private seller. Those five things set the rate band before anything else is assessed.
Usually the same day
We match lender to vehicle
Lenders have very different appetites for age, kilometres and private sales. We go to the ones whose rules the vehicle fits, so you are not declined on the asset after being approved on the numbers.
24 to 48 hours from a dealer, 3 to 5 business days privately
Settle and collect
The lender pays the seller directly, registers on the PPSR and confirms insurance. Then you collect the vehicle. Money never goes to a private seller before the PPSR check clears.
This vs the alternative
Chattel mortgage vs finance lease vs hire purchase
Three ways to finance the same ute. The repayments look similar; the ownership and the tax treatment do not.
| Chattel mortgage | Finance lease | Commercial hire purchase | |
|---|---|---|---|
| Who owns the vehicle during the term | You do. The lender registers a security interest on the PPSR. | The lender owns it and you rent it. | The lender owns it until the final payment. |
| Who owns it at the end | You, once the contract and any balloon are paid. | You pay the residual, re-lease, or hand the vehicle back. | Title transfers to you with the last payment. |
| GST | Claimed on the purchase price on your next BAS. | GST is charged on each rental and claimed as you go. | Claimed up front on the cash price. |
| Lump sum at the end | Balloon, set by you within the lender's limits. | Residual, often set by guideline for the term. | Balloon, same idea as a chattel mortgage. |
| Who it suits | A trade or business keeping the vehicle past the term. | Fleets that cycle vehicles and want to hand them back. | Businesses wanting ownership at the end under an older structure. |
General information only. Vehicle deductions and depreciation limits are set by the ATO and change - your accountant should confirm the treatment for your entity before you sign.
New, used or private sale - what actually changes
| New from a dealer | Used from a dealer | Private sale | |
|---|---|---|---|
| How fast | Fastest. Tax invoice, PPSR, settle - often 24 to 48 hours after approval. | Much the same, once the dealer issues the invoice. | Slower. 3 to 5 business days while the lender verifies the seller and clears the PPSR. |
| What the lender checks | Dealer tax invoice and VIN. | Invoice, VIN, odometer, and sometimes an inspection. | PPSR encumbrance search, seller identity, seller bank account, often an independent inspection. |
| Watch out for | Delivery delays pushing settlement past the approval expiry. | Warranty and service history - the lender checks the security, not whether it is a good buy. | Never pay the seller yourself before the lender's PPSR check clears. If you are being pushed to, stop. |
Age limits on the vehicle
Almost every lender works to an age-at-end-of-term rule rather than an age-today rule. A 10-year-old ute on a 5-year term is assessed as a 15-year-old ute.
- Cars, utes and vans are commonly financed to around 12 to 15 years old at the end of the term.
- Trucks and heavy commercial run longer, because the working life is longer. Most of the panel will go to around 20 years at the end of the term, and prime movers are often assessed on hours run rather than age.
- An older vehicle usually means a shorter term, a higher rate, or both.
- Ex-rental, ex-fleet, statutory write-offs and grey imports are treated differently by every lender. Tell us up front.
FAQ
Vehicle Finance questions
Can I buy from a private seller?
What is a balloon payment?
How old can the vehicle be?
Can a sole trader get commercial vehicle finance?
What about a car that is part private use?
Do I need insurance before settlement?
Can I finance more than one vehicle at a time?
What if I want to sell the vehicle mid-term?
A person reads this, not a scoring engine
A named advisor takes your file to the lenders on the panel that fund your industry and your turnover — and tells you plainly when business vehicle finance is the wrong answer and what to use instead.
Ready when you are
Compare Vehicle Finance today
Comparing is free, you’re never locked in, and checking won’t affect your credit score. If we can’t help, we’ll tell you that too.
