Whether you're purchasing your first prime mover, adding a rigid to your fleet, or upgrading an ageing tipper, securing the right truck loan is critical to your business operations. Commercial vehicle finance is more complex than a standard car loan — but with the right broker, the process is straightforward and the outcomes are highly competitive.

🚛 Drive Select Finance arranges truck and commercial vehicle finance Australia-wide. From light commercials to heavy rigids — competitive rates, fast approvals, ABN and company applicants welcome.

What Types of Vehicles Are Covered by Truck Loans?

Commercial vehicle finance covers a broad range of assets:

  • Light commercial (up to 4.5t GVM): Utes, vans, small trucks — Toyota HiLux, Ford Ranger, Isuzu NPR, etc.
  • Medium commercial (4.5t – 12t GVM): Tippers, curtainsiders, refrigerated vehicles — Hino, UD, Fuso, etc.
  • Heavy commercial (12t+ GVM): Prime movers, B-doubles, semi-trailers — Kenworth, Volvo, DAF, Western Star, etc.
  • Trailers: Including semi-trailers, flat-tops, tankers, refrigerated, and B-trains.
  • Specialised vehicles: Concrete agitators, tow trucks, crane trucks, and other specialist applications.

Loan Structures for Truck Finance

Chattel Mortgage

The most common structure for truck finance. You take ownership from day one, interest is tax deductible, and GST is claimable upfront for GST-registered businesses. A balloon payment can be structured to align with expected resale value, reducing monthly repayments.

Finance Lease

The lender owns the vehicle. You make fixed lease payments and have options at the end of the term: purchase at residual, trade, or return. Favoured by fleet operators and businesses who prefer operating lease treatment for accounting purposes.

Commercial Hire Purchase

Similar to chattel mortgage in that you take ownership at term end, but structured as a hire arrangement. Some businesses prefer this for GST accounting reasons. Your accountant can advise on which suits your structure.

Rental / Operating Lease

Full off-balance-sheet treatment. Fixed monthly payments including maintenance packages. Common in large fleet applications. The lender bears the residual value risk.

💡 Balloon Payment Strategy

Setting a balloon at 20–30% reduces monthly repayments significantly. For example, on a $150,000 truck loan over 5 years at 8%, a 25% balloon reduces monthly repayments by approximately $400/month. Ensure the balloon aligns with realistic market value at term end.

Truck Loan Rates in Australia

Commercial vehicle loan rates vary based on the asset, borrower profile, and lender. Indicative ranges in 2026:

  • Prime applicant, new truck: 7% – 10% p.a.
  • Good profile, used truck: 8.5% – 13% p.a.
  • Low-doc / self-employed: 9% – 15% p.a.
  • Older assets (7+ years): 12% – 18% p.a.

Specialist lenders and non-bank financiers often provide more competitive rates on heavy commercials than the major banks, particularly for assets with high residual values like quality prime movers.

What Lenders Assess for Truck Finance

Commercial lenders look at a combination of factors:

  • Business financials: Profit and loss, BAS statements, bank statements — demonstrating ability to service the debt.
  • ABN age: Most lenders prefer 12+ months of trading history. Start-up lenders do exist but rates are higher.
  • Asset quality: Age, condition, brand, and residual value of the truck or trailer.
  • Industry experience: Lenders look more favourably on operators with established industry experience and contracts.
  • Credit history: Personal credit of directors/guarantors is also assessed.
  • Security: The truck itself is the primary security. Additional property security can unlock lower rates.

Low-Doc Truck Loans for Self-Employed Operators

Not all owner-operators have clean, up-to-date financial statements. Low-doc truck loans assess applications based on:

  • 6 months of business bank statements
  • BAS statements (2–4 quarters)
  • Self-declaration of income
  • Accountant's letter

Drive Select Finance has access to specialist commercial lenders who approve low-doc truck loans — including for start-up operators with relevant industry experience.

Buying a New vs Used Truck

New Trucks

Lower rates, manufacturer's warranty, maximum depreciation benefits, and predictable maintenance costs. OEM finance programs can occasionally offer promotional rates but rarely beat broker-sourced options on the full cost of credit.

Used Trucks

Lower acquisition cost, but higher rates and more lender scrutiny on age and condition. Most lenders cap used truck finance at 10–15 years old at loan end. Ex-lease and ex-fleet trucks from reputable sources offer excellent value.

How to Apply for a Truck Loan

Apply online with Drive Select Finance. Indicate that you need commercial vehicle or truck finance. Our brokers have specialist knowledge in commercial lending and will identify the optimal lender, structure, and rate for your specific vehicle and business situation.

Documentation required at formal application stage: ABN/ACN, ID, business financials or bank statements, and vehicle details. We handle the rest.

🚛 Need a truck loan? Drive Select Finance arranges commercial vehicle finance for owner-operators, small fleets and established transport businesses. Free quote, no credit impact.