Truck & Trailer Loans

Truck and Trailer Finance Broker Australia

Trucks and trailers are the backbone of the Australian economy. From owner-drivers running a single prime mover to logistics companies managing fleets of B-doubles, the ability to finance commercial vehicles quickly and at competitive rates is critical to keeping freight moving and businesses growing. Australian Finance & Loans is an independent finance broker with access to over 50 Australian lenders, including specialist commercial vehicle financiers who understand the transport industry, its cash flow cycles and its specific lending requirements.

Truck and trailer finance is not the same as a standard car loan. Lenders assess commercial vehicles differently, kilometre readings matter, engine hours matter, the vehicle's working history matters, and the structure of the finance can have a significant impact on your tax position and cash flow. We explain all of it on this page so you can make an informed decision before you commit.

Trucks and Trailers We Finance

Prime Movers and Semi-Trailers

  • Prime movers and sleeper cab prime movers for long-haul operations

  • B-double and B-triple combinations

  • Road train configurations

  • Semi-trailers: curtain-sider, drop deck, flat top, skeletal and refrigerated

  • Extendable trailers for oversized loads

Rigid Trucks

  • Light rigid trucks: 4.5 to 8 tonne GVM for urban deliveries

  • Medium rigid trucks: 8 to 16 tonne for construction, waste and distribution

  • Heavy rigid trucks: tippers, concrete agitators, crane trucks and rescue vehicles

  • Refrigerated rigid trucks for food and pharmaceutical distribution

  • Pantech and curtain-sider rigid trucks

Specialised Commercial Vehicles

  • Tipper trucks and dog tipper combinations

  • Concrete agitator and mixer trucks

  • Crane trucks and travel towers

  • Tilt tray and car carrier trucks

  • Tanker trucks for fuel, liquid and bulk goods

  • Livestock transport vehicles

  • Waste management vehicles including hook lift and compactor trucks

  • Refrigerated transport vehicles

Trailers (Standalone Finance)

  • Flat top and drop deck trailers

  • Curtain-sider and tautliner trailers

  • Refrigerated trailers and refrigerated containers

  • Tipper trailers and dog trailers

  • Livestock trailers and horse floats

  • Tandem axle and tri-axle trailers

  • Dolly and converter dolly units

  • Car transport trailers and enclosed car trailers

  • Boat trailers, machinery trailers and plant trailers

Truck Brands We Finance

  • Kenworth, Peterbilt and DAF (PACCAR group)

  • Volvo and Mack

  • Mercedes-Benz Actros, Arocs and Atego

  • Scania and MAN

  • Isuzu, Hino and Fuso (light to medium range)

  • Western Star and Freightliner

  • UD Trucks and Iveco

  • New and used trucks from dealers, private sellers and auctions

Finance Structures for Trucks and Trailers

Chattel Mortgage

A chattel mortgage is the most widely used finance structure for trucks and trailers in Australia, and for good reason. Your business takes ownership of the vehicle at settlement. The lender registers a mortgage over it as security. You make fixed repayments over the agreed term and once the loan is repaid, the mortgage is discharged. From day one you can claim the full GST on the purchase price on your next BAS, deduct the interest component of repayments and depreciate the asset over its ATO effective life. For owner-drivers and transport businesses using a cash accounting method, a chattel mortgage is almost always the most tax-effective structure available.

Current market rates for truck chattel mortgages in Australia start from the high 7% per annum range for new prime movers and late-model trucks with strong credit profiles. Used and older trucks typically attract rates from around 10% per annum upwards, depending on age, kilometres and the borrower's financial position. We compare across 50+ lenders to find the most competitive rate for your specific vehicle and circumstances.

Finance Lease

Under a finance lease, the lender owns the truck or trailer and leases it to your business for the agreed term. All lease payments are fully deductible as a business operating expense. At the end of the term you can purchase the vehicle at the agreed residual value, extend the lease or hand it back. Finance leases are popular with transport businesses that want to upgrade their fleet regularly or that prefer to keep the asset off their balance sheet. Unlike a chattel mortgage, the GST on the purchase price is spread across lease payments rather than claimed upfront.

Commercial Hire Purchase (CHP)

Under a commercial hire purchase, the lender purchases the vehicle and hires it to your business. You make fixed repayments and take full ownership when the final payment is made. The interest component is deductible each year. GST is spread across payments rather than claimed upfront on your BAS. CHP suits businesses on an accruals accounting method where the immediate GST claim of a chattel mortgage does not apply in the same way.

Rent to Own (Operating Lease)

A rent to own arrangement allows your business to use the vehicle without full ownership. The lender retains ownership throughout and repayments are structured as rental payments, which are fully deductible. At the end of the term a buy-out option is usually available. This structure can suit transport businesses that want lower monthly payments and maximum flexibility around fleet changes, though the total cost over the life of the agreement is typically higher than a chattel mortgage.

Low-Doc Truck Finance

Many owner-drivers and small transport operators cannot easily provide full financial statements, particularly those who have been in business for under two years, are between accountants, or have had a complex recent financial period. Low-doc truck finance assesses your application using bank statements and BAS returns rather than formal financial statements. Loan amounts up to $300,000 are available on a low-doc basis from specialist lenders on our panel. For strong ABN holders with a solid bank statement history, low-doc approval is often achievable within 24 to 48 hours.

Sale and Leaseback

If you own a truck or trailer outright, a sale and leaseback arrangement can release the equity tied up in that asset as working capital. The financier purchases the vehicle from you and leases it back for an agreed term. You continue operating the vehicle while the freed cash is available for fuel, wages, maintenance or fleet expansion. This is a useful tool for transport businesses that need to unlock cash without selling the vehicle. Select lenders on our panel offer this product.

Owner-Driver Finance: What You Need to Know

Owner-drivers are one of the most common borrower types for truck finance in Australia, and one of the most underserved by mainstream banks. Many banks apply strict requirements around business trading history, financial statements and asset position that owner-drivers simply cannot meet, particularly when starting out or when transitioning from employment to owner-driver status. We have specialist lenders on our panel who understand the owner-driver model and assess applications based on realistic criteria.

What lenders look for in owner-driver applications

  • Active ABN, ideally with 12 or more months of trading history (some lenders accept less with a work contract)

  • Three to six months of business bank statements showing regular income deposits

  • Evidence of a current or upcoming transport contract, work agreement or confirmed freight work

  • Driver's licence including the relevant heavy vehicle class for the truck being financed

  • A clean driving record is viewed favourably by most lenders

  • BAS lodgements up to date if GST registered

New owner-drivers and startups

Starting out as an owner-driver is one of the more challenging finance scenarios because you have limited trading history. However, it is not impossible. Specialist lenders will consider new owner-driver applications where the borrower can demonstrate previous industry experience, has a confirmed work contract or letter of intent from a freight company, and can contribute a deposit of 10% to 20%. We work with multiple lenders who support new entrants to the owner-driver market. Contact us before assuming approval is not possible.

Seasonal repayment structures

The transport industry has seasonal cash flow variations, particularly for operators serving agriculture, construction and retail freight. Some lenders on our panel offer repayment structures tailored to your income cycle, with lower repayments during slower periods and higher repayments during peak seasons. Ask us about seasonal repayment options when you enquire and we will identify which lenders offer this flexibility.

Financing Used Trucks and High-Kilometre Vehicles

A significant proportion of truck finance applications in Australia involve used vehicles. New prime movers cost between $250,000 and $500,000 or more, making used trucks the practical choice for many operators, particularly those starting out or expanding carefully. Used truck finance works well but has specific considerations.

Age and kilometre limits

Each lender applies their own age and kilometre limits to used truck applications. Most mainstream lenders are comfortable with trucks up to 10 years old and up to 700,000 to 800,000 kilometres. Specialist lenders will consider older vehicles and higher kilometre readings where the truck is in good working condition, the price reflects the age and condition, and the borrower has a solid financial profile. We know which lenders will accept your specific truck's age and kilometres before we apply, saving you from unnecessary credit inquiries with lenders who will decline.

Private sale and auction truck finance

Private sale and auction purchases of trucks are common in the transport industry. Finance is available for both, subject to the vehicle meeting the lender's criteria. For private sales, most lenders require a PPSR check to confirm there is no finance registered against the vehicle, a roadworthy or inspection certificate, and a written contract of sale. For auction purchases, pre-approval is strongly recommended before bidding. We arrange pre-approval for buyers planning to attend Pickles, Manheim, Grays or other commercial vehicle auctions regularly.

Refinancing existing truck loans

If you are currently paying a rate on a truck loan that is no longer competitive, or if your trading history and credit profile have improved since your original loan was taken out, refinancing may reduce your rate and lower your repayments. Refinancing can also help consolidate multiple truck loans into a single facility to simplify cash flow management. We assess your current loan, the vehicle's current value and your financial position to confirm whether refinancing delivers a genuine saving.

Trailer Finance: Standalone and Combination

Trailers are frequently financed separately from trucks, particularly when operators need to add carrying capacity without purchasing another prime mover, or when a trailer is purchased as part of a depot or yard expansion. Standalone trailer finance is available through most lenders on our panel.

New and used trailers

Finance is available for new trailers from manufacturers and dealers, as well as used trailers from private sellers and auctions. Trailer values tend to hold reasonably well compared to trucks, which works in borrowers' favour from a loan-to-value perspective. Most lenders will accept trailers up to 15 years old in good working condition.

Truck and trailer combination finance

Where a truck and trailer are purchased together as a combination, many lenders will finance both under a single facility, simplifying the repayment structure. For separate purchases at different times, we arrange separate facilities that can be managed together. We advise on the most efficient structure for your specific acquisition at the time of your enquiry.

Refrigerated trailers and specialised units

Refrigerated trailers and temperature-controlled units are financed by specialist commercial vehicle lenders on our panel. These units hold their value well when properly maintained and lenders are generally comfortable lending on them. The refrigeration unit itself is included in the financed amount as part of the trailer value.

Truck and Trailer Loan Details

Loan Amounts

We arrange truck and trailer finance from $20,000 up to $5,000,000 and above for large fleet acquisitions. Single truck purchases typically fall between $80,000 and $500,000 depending on the make, model and condition. Trailer-only finance typically ranges from $20,000 to $200,000.

Loan Terms

Truck and trailer loans are available over 1 to 7 years. Most operators choose 5-year terms to balance repayment affordability with total interest cost. For high-value new prime movers, 7-year terms are available from some lenders. The vehicle must not exceed the lender's maximum age limit at the end of the loan term.

Interest Rates

Chattel mortgage rates for new trucks currently start from the high 7% per annum range for well-qualified borrowers. Used and older trucks typically attract rates from 10% per annum upwards depending on age, kilometres and credit profile. Finance lease and CHP rates vary and should be compared against the tax benefits of each structure for your specific situation. We compare across 50+ lenders to find your most competitive option.

Deposit

Many lenders offer no-deposit truck finance for well-qualified applicants with a solid trading history and strong bank statements. For new owner-drivers, startups or more complex credit situations, a deposit of 10% to 20% improves approval odds and can lower your rate. A trade-in of an existing truck can sometimes be used in lieu of a cash deposit.

Balloon Payment

Balloon payments are common in truck and trailer finance and can significantly reduce regular repayments. They are particularly useful for managing cash flow on high-value prime movers. At the end of the term you can pay the balloon in cash, refinance it, or for finance lease structures, hand the vehicle back at the agreed residual. Balloon amounts are typically set at 10% to 30% of the original vehicle value.

Repayment Frequency

Weekly, fortnightly or monthly repayments are available. For owner-drivers who receive weekly or fortnightly freight payments, matching repayment frequency to income frequency can simplify cash flow management.

Tax Benefits of Truck and Trailer Finance

GST Input Tax Credit

Under a chattel mortgage, the full GST on the truck or trailer purchase price is claimable on your next BAS. On a $300,000 prime mover, this represents $27,272 claimable in the quarter of purchase, providing a substantial immediate cash flow benefit. This is one of the primary reasons the chattel mortgage is the preferred structure for most transport businesses.

Depreciation

As the owner of the asset under a chattel mortgage, you can claim depreciation over the ATO effective life of the vehicle. The ATO effective life for most heavy trucks is 15 years, and for trailers 25 years, though accelerated depreciation provisions may allow faster write-off in some circumstances. Confirm current provisions with your accountant.

Interest Deductions

The interest component of chattel mortgage repayments is fully deductible as a business borrowing expense each financial year. On a $300,000 truck loan at 8% over 5 years, total interest over the life of the loan is approximately $66,000, all of which is potentially deductible.

Finance Lease Deductions

Under a finance lease or rent to own arrangement, the full lease or rental payment is deductible as a business operating expense. There is no depreciation claim as you do not own the asset, but the full payment deduction can be simpler to administer.

Instant Asset Write-Off

Check with your accountant whether current instant asset write-off provisions apply to your truck or trailer purchase in the relevant financial year. Thresholds and eligibility have changed significantly in recent years. Your accountant can confirm the most current position and how it applies to your specific business structure and turnover.

Frequently Asked Questions About Truck and Trailer Finance in Australia

Can I get truck finance as an owner-driver with no financials?

Yes. Low-doc truck finance is specifically designed for owner-drivers and transport operators who cannot provide formal financial statements. Lenders assess your application using three to six months of business bank statements and your BAS lodgement history. If you have a work contract or freight agreement in place, this can significantly strengthen your application. Loan amounts up to $300,000 are available on a low-doc basis from specialist lenders on our panel.

Can I get truck finance as a new business or startup operator?

Yes, though the requirements are more specific. Most specialist lenders want to see evidence of industry experience, a confirmed work contract or letter of intent from a transport company, and in most cases a deposit of 10% to 20%. Some lenders will consider applications with as little as six months of ABN history where the applicant has previous heavy vehicle driving experience and a solid credit history. Contact us before assuming approval is not possible for a new business.

What interest rate can I expect on a truck loan?

Rates for new prime movers and late-model trucks with strong credit profiles currently start from the high 7% per annum range under a chattel mortgage. Used trucks or those with higher kilometres typically attract rates from around 10% per annum upwards depending on age, condition and the borrower's financial profile. Finance lease and CHP rates vary by lender and structure. We compare across 50+ lenders to find the most competitive rate for your specific vehicle and situation.

Can I finance a used or high-kilometre prime mover?

Yes. Specialist commercial vehicle lenders regularly approve used prime movers and high-kilometre trucks, provided the loan is structured appropriately, the purchase price reflects the vehicle's condition and age, and the borrower has solid supporting documentation. Most mainstream lenders cap vehicle age at 10 years. Specialist lenders can consider older vehicles on a case-by-case basis. We know which lenders will accept your specific truck before we apply.

Can I finance a truck purchased at auction?

Yes. Auction purchases are accepted by most commercial vehicle lenders. The most important step is to arrange pre-approval before you bid. Once the hammer falls at auction the purchase is binding, so you need your finance confirmed beforehand. We arrange pre-approvals regularly for buyers planning to attend Pickles, Manheim, Grays and other commercial vehicle auctions. Contact us before your auction date to confirm your position.

Can I finance just a trailer without a truck?

Yes. Standalone trailer finance is available from most lenders on our panel. Finance is available for all trailer types including curtain-siders, flat tops, refrigerated trailers, tippers, livestock trailers and tankers. New and used trailers are both accepted. Finance terms of 1 to 7 years are available with loan amounts from $20,000 upwards.

How much deposit do I need for truck finance?

Many lenders offer no-deposit truck finance for well-qualified applicants with a solid ABN trading history and clean bank statements. For new owner-drivers and startup operators, most specialist lenders require a deposit of 10% to 20%. A larger deposit reduces the lender's risk, which can improve both your interest rate and your approval terms. A trade-in of an existing truck can sometimes be used as an equivalent to a cash deposit.

Can I get truck finance with bad credit?

Yes, in many cases. We have access to specialist lenders who consider applications with impaired credit, including prior defaults, missed payments or a short credit history. Rates from specialist lenders are higher than prime rates but approval is possible in most circumstances. The key is approaching the right lender for your credit profile, which is what we do. A declined application from the wrong lender creates a credit inquiry that makes subsequent approvals harder. Let us assess your position first.

Can I get seasonal repayments on my truck loan?

Yes. Some lenders on our panel offer repayment structures tailored to seasonal cash flow, with lower repayments during quieter periods and higher repayments during peak freight seasons. This is particularly useful for operators serving the agricultural, construction or retail freight sectors where income fluctuates throughout the year. Ask us about seasonal repayment options when you enquire and we will identify which lenders offer this flexibility for your loan amount.

How long does truck finance approval take?

Most standard truck finance applications submitted with complete documentation receive a conditional approval within 24 hours. Low-doc applications and those involving older or higher-value vehicles may take 24 to 48 hours. Once formally approved and all documents are finalised, settlement typically occurs within one to two business days.

Can I refinance my existing truck loan?

Yes. If your current truck loan rate is no longer competitive, or if your trading history and credit profile have improved since you originally borrowed, refinancing may reduce your rate, lower your repayments or allow you to consolidate multiple truck loans into a single facility. We assess your current loan, the vehicle's current market value and your financial position to confirm whether refinancing delivers a genuine saving after any early payout costs.

What is a balloon payment on a truck loan and should I use one?

A balloon payment is a lump sum deferred to the end of the loan term that reduces your regular repayments throughout the loan. For example, on a $300,000 prime mover with a 20% balloon over 5 years, your regular repayments are calculated on $240,000 and you pay $60,000 at the end. Whether a balloon makes sense depends on your cash flow needs, your plan for the vehicle at the end of the term and whether you expect to be able to pay or refinance the balloon when it falls due. We model the repayment and total cost scenarios for both with and without a balloon so you can make an informed decision.

What is a sale and leaseback and can it help my transport business?

A sale and leaseback allows you to sell a truck or trailer you own outright to a financier and lease it back for an agreed term. You continue operating the vehicle while the cash from the sale is available for fuel, wages, maintenance or fleet expansion. This is a useful tool for transport businesses that need to free up working capital without selling the vehicle permanently. Select lenders on our panel offer sale and leaseback for commercial vehicles. Contact us to discuss whether this structure suits your current situation.

Do I need GST registration to get truck finance?

GST registration is not a strict requirement for all truck finance products, but it is required to claim the GST input tax credit under a chattel mortgage. Most transport businesses with annual turnover above $75,000 are required to be registered for GST regardless. If you are not GST registered, the GST on the vehicle purchase cannot be claimed and this will be factored into the total cost of the finance. We can still arrange finance for non-GST-registered borrowers but the chattel mortgage GST benefit does not apply.

Can I finance a truck for a company or trust?

Yes. We arrange truck and trailer finance for sole traders, partnerships, companies and trusts. The appropriate finance structure may differ depending on your entity type and accounting method. For example, whether a chattel mortgage or a finance lease is more tax-effective can depend on whether your entity uses cash or accruals accounting. We work through the most appropriate structure for your entity type with you before submitting any application.

Why Choose Australian Finance & Loans for Truck and Trailer Finance

  • Independent broker: we compare 50+ lenders including specialist commercial vehicle financiers

  • Deep understanding of the transport industry and owner-driver specific lending requirements

  • Access to low-doc truck finance for operators without formal financial statements

  • Specialist lenders for used trucks, high-kilometre prime movers and complex credit situations

  • Pre-approval available for auction buyers before you bid

  • Seasonal repayment structures available for operators with variable cash flow

  • Sale and leaseback options for releasing equity from existing truck assets

  • Fast approvals: most applications receive conditional approval within 24 hours

  • Melbourne-based team with national reach across all states and territories