Ute and truck finance lets a tradie or transport operator buy a work vehicle and spread the cost over the years it earns, with the vehicle itself as the security. Most business buyers use a chattel mortgage, so you own the vehicle from day one, though a lease is an option if you would rather hand it back and upgrade. Repayments, and any balloon, are set against how long you plan to keep the vehicle. Because the vehicle is the security, pricing usually sits below unsecured lending.
Whether you are a sole-trader sparky needing one ute or a transport operator adding prime movers and trailers to a fleet, the finance works the same way. This guide covers what you can finance, how the finance is structured, how the vehicle secures the loan, and the GST and logbook points to raise with your accountant. 121 Brokers is a broker, not a lender: we compare vehicle finance across a panel of financiers, and any tax comment here is general information, not tax advice.
What is ute and truck finance?
It is asset finance for commercial vehicles. A financier pays the supplier for the vehicle, you take it and put it to work, and you repay over an agreed term with the vehicle held as security. It is the same family of finance used for plant and equipment, applied to anything with wheels that earns its keep. The demand is real: ABS Counts of Australian Businesses (June 2025) showed the transport, postal and warehousing sector growing about 5.1 per cent in 2024-25, one of the fastest-growing sectors by business count, and every one of those operators needs vehicles on the road.
For tradies, the vehicle is the business's mobile base. Construction and trades have consistently carried the largest single share of business insolvencies in Australia (ASIC insolvency statistics), and a big part of staying solvent is not tipping working capital into a depreciating asset you could have financed instead. Financing the ute keeps your cash free for materials, wages and the next job.
What you can finance
Utes and light commercials
Single-cab and dual-cab utes, vans and light trucks are the workhorses for trades, mobile services and small-fleet operators. New or used, from a dealer or a private sale, most are straightforward to finance.
Trucks: rigid and prime movers
Rigid trucks, prime movers and heavier commercial vehicles are financed the same way, usually over a term matched to the working life of the vehicle. Older trucks can still be financed, though the age of the vehicle at the end of the term affects the lenders willing to look and the terms they offer.
Trailers, attachments and fit-outs
Trailers, tippers, curtain-siders, and the fit-out that turns a bare van into a working vehicle can often be rolled into the finance too. If the vehicle and its gear are bought together, it is worth asking for them to be quoted together.
How the finance is structured: chattel mortgage or lease
The two common structures are a chattel mortgage and a lease, and the difference is ownership.
With a chattel mortgage, you own the vehicle from day one and the financier registers a security interest over it until the loan is repaid. Most tradies and transport operators use this structure, because you end up owning the asset and it sits on your balance sheet. With a lease, the financier owns the vehicle and you rent it for a term, then return it, extend, or pay a residual to buy it. Leasing can suit an operator who upgrades on a regular cycle and would rather hand vehicles back than own an ageing fleet. For the full side-by-side of both, plus hire purchase, see chattel mortgage vs finance lease vs hire purchase.
Either way, you can usually set a balloon or residual: a lump sum at the end of the term that lowers your regular repayments. A bigger balloon eases monthly cash flow but leaves more owing at the end, which matters most on vehicles you plan to keep for the long haul.
The vehicle is the security
Ute and truck finance is secured against the vehicle itself, which is why it generally prices below an unsecured business loan. The financier has a specific, recoverable asset behind the loan, so it carries less risk and can price accordingly. In practical terms it also means you usually do not have to pledge your home or other property to finance a work vehicle, which is a point many owners care about. The ScotPac SME Growth Index 2026 found about one in six SMEs chose a non-bank lender specifically to keep the family home out of their finance, and asset-secured vehicle finance is one of the cleaner ways to do that.
What it costs
As a broad market guide only, not a quote, scans of Australian financiers put equipment and vehicle finance from around 6.5 per cent per annum at the sharp end, typically in the 7 to 11 per cent per annum range for established businesses, and higher for weaker profiles, older vehicles or low-documentation deals (indicative ranges as at July 2026). The rate depends on the vehicle, its age, your trading and credit strength, the term and the financier. Fees and any balloon shift the total cost too, so compare total cost over the term rather than the monthly figure alone. Price a repayment for your own vehicle, term and balloon here:
Use it as an estimate to size the decision. The financier sets the actual rate, fees and repayment on your file.
GST, the logbook and business use
A work vehicle usually has both business and private use, and that split matters at tax time. At a high level: if your business is registered for GST, the GST in the vehicle's purchase price is generally relevant to your BAS, and depreciation and the interest on the finance are the usual areas of tax interest for the business-use portion. Where a vehicle is used privately as well as for work, the business-use share is commonly worked out using a logbook, and there are limits and rules that apply to how much can be claimed on a vehicle.
Those rules are set by government, they change, and the right answer depends on your structure and how the vehicle is used. We do not publish thresholds, the car cost limit or write-off deadlines here. Keep a logbook, and confirm exactly what you can claim, including whether any instant asset write-off applies to your purchase, with your accountant and at ato.gov.au. This is general information only, not tax advice.
New, used and older trucks
You can finance new and used vehicles under the same structures. For used vehicles, and especially older trucks, the age of the vehicle at the end of the term is the main variable: a financier looks at how old the vehicle will be when the loan finishes, not just how old it is today. That affects which financiers will fund it and over what term. A private-sale or auction purchase is fine too, though it usually needs a little more paperwork, which a broker can help package.
How to arrange ute and truck finance through a broker
Tell us the vehicle, roughly what it costs and whether it is new or used, plus a little about your business. We match your file to the financiers on our panel whose appetite fits the vehicle and your industry, and compare the rate, fees, balloon and term so you can weigh total cost, not just the monthly number. You choose, and we handle the paperwork.
Transport operators and tradies can start on our vehicle finance page, or see equipment finance if the same purchase includes plant. There is more industry-specific detail for transport operators and trades and construction. When you are ready, compare your options with a broker.
General information only: not financial, legal or tax advice, and it does not take account of your objectives, financial situation or needs. 121 Brokers arranges business-purpose finance only and is a broker, not a lender. Any rates, fees, advance rates or timings mentioned are broad market guides, not quotes or offers. Approval, amounts, rates, fees and timing are determined by the lender or financier and are subject to its assessment criteria. Confirm any tax position with your accountant and at ato.gov.au.
