From single owner-operator prime movers to fleet purchases — Novara compares 60+ lenders including specialist heavy vehicle financiers. Rates from 5.5% for established operators.
Truck finance is a category of equipment finance where the truck is used as security for the loan. Because trucks are high-value assets with established resale markets, lenders view them as strong security.
The majority of truck finance in Australia is structured as a chattel mortgage:
Important: consult your accountant for tax advice specific to your situation. The tax benefits depend on your business structure, GST registration, and how you use the truck. Compare chattel mortgage vs hire purchase in detail.
Commercial hire purchase (CHP): The lender buys the truck and hires it to you. You make regular payments and take ownership at the end of the term (after paying a nominal residual). Some operators prefer this for accounting or fleet management reasons.
Finance lease: The lender owns the truck and leases it to you. Less common for trucks because most operators want ownership, but can suit businesses that prefer to upgrade their fleet on a regular cycle.
Operating lease / rental: A long-term rental arrangement. You use the truck, make regular payments, and return it at the end. No ownership. Suits larger fleet operations with a planned replacement cycle.
Read our full equipment finance guide for a detailed comparison of all three structures.
| Profile | Rate range (chattel mortgage) | Context |
|---|---|---|
| Established operator (3+ years), clean credit, new truck | 5.5% – 7.5% p.a. | Best rates. Strong history, prime brand, good resale. |
| Established operator, clean credit, used truck (under 10 yrs) | 7.0% – 9.0% p.a. | Used trucks carry slightly more risk. Age, condition, kms matter. |
| Newer operator (1–3 years), clean credit | 7.5% – 10.0% p.a. | Less history but demonstrable income. Low-doc available. |
| First truck / new ABN (under 12 months) | 9.0% – 13.0% p.a. | Limited history. Deposit and industry experience help. |
| Operator with credit issues | 11.0% – 15%+ p.a. | Specialist lenders required. Deposit usually needed. |
Rates current as of June 2026. Comparison rates will be higher once fees are included. Individual circumstances vary. Subject to lender criteria and approval.
On a $200,000 truck financed over 5 years with no balloon:
| Rate | Monthly repayment | Total interest paid |
|---|---|---|
| 6.5% p.a. | ~$3,910 | ~$34,600 |
| 8.5% p.a. | ~$4,100 | ~$46,000 |
| 11.0% p.a. | ~$4,350 | ~$61,000 |
The difference between 6.5% and 11% on a single truck is approximately $26,400 in extra interest. For a fleet of three trucks, that's almost $80,000. This is why choosing the right lender — not just any lender — matters so much.
If you're an established owner-operator with an ABN, a clean credit file, and consistent income, you're in the strongest position. Lenders understand the owner-operator model and know that the truck is the business — it earns the income that makes the repayments.
What lenders look for:
If you're adding trucks to an existing fleet, lenders assess your fleet's financial performance alongside your business financials. Volume can work in your favour — some lenders offer fleet pricing for multi-unit purchases. If you're buying three or more trucks in a single deal, ask your broker about fleet rates.
Buying your first truck is one of the most common reasons people come to a broker. First-time truck buyers face two challenges: limited ABN history and no track record of truck repayments. Here's how to strengthen your application:
If you have defaults, late payments, or adverse credit history, truck finance is still possible through specialist lenders. The rates will be higher and a deposit is usually required, but pathways exist. We've settled truck finance for operators with paid defaults, discharged bankruptcies, and credit scores below 500.
The key is using a broker who pre-assesses your file and matches you to the right specialist lender — not applying directly with three banks and stacking up hard enquiries that make your situation worse.
A balloon payment (also called a residual value) is a lump sum due at the end of your loan term.
For established operators with clean credit and standard documentation, 24–48 hours is typical through our specialist panel. First-time buyers and low-doc applications may take 3–5 business days. We've achieved same-day approvals for straightforward applications.
Not always. Established operators with clean credit can often access 100% finance (no deposit) for new trucks. For used trucks, first-time buyers, or operators with credit issues, a deposit of 10–20% strengthens the application and usually improves the rate. Some lenders offer zero-deposit options for newer operators at a higher rate.
Yes. Most lenders finance used trucks, with age guidelines typically requiring the truck to have a reasonable remaining useful life beyond the loan term. A common benchmark is that the truck should be no older than 15–20 years at the end of the loan term — though this varies by lender and truck type. Well-maintained trucks from major brands with documented service histories attract better terms.
For a standard application: last two years of tax returns, last two BAS statements, last 3–6 months of business bank statements, details of the truck you're buying, and details of any existing finance. For low-doc applications: ABN registration (6–12 months minimum), last two BAS statements, last 3–6 months of bank statements, and the truck details. Read more about low-doc finance options.
The interest on truck finance is generally tax-deductible as a business expense. If you use a chattel mortgage, you can also typically claim depreciation on the truck and may be eligible for the instant asset write-off (check current thresholds with your accountant). GST-registered businesses can usually claim back the GST on the purchase price. Consult your accountant for tax advice specific to your situation.
Yes, though your options will be more limited than for an established operator. Lenders typically want your ABN to be active for at least 6–12 months. Industry experience, a deposit, and a confirmed income source (contract or subcontracting agreement) significantly strengthen a new business application. Some specialist lenders have specific "new to industry" products.
There's no universal maximum — it depends on the lender, your business profile, and the asset. Single-truck approvals of $300,000–$500,000+ are common for established operators. Fleet finance arrangements can run into the millions. The lender assesses your capacity to service the debt relative to your business income.
Whether you're financing your first rigid or your tenth prime mover, the right lender and the right structure can save you tens of thousands. No cost, no obligation, no credit check to get started.
This article provides general information only and does not constitute financial advice. Tax-related information is general in nature — consult your accountant for advice specific to your situation. All truck finance applications are subject to lender criteria and approval. Rates mentioned are indicative and current as of June 2026 — individual circumstances vary. Novara Finance Pty Ltd | AFSL 517192 | ABN 99 687 789 144.