Truck finance basics: chattel mortgage, lease and what the rate really means

Chattel mortgage

The most common product for ABN holders. You own the truck from day one, the lender takes a mortgage over it, and you claim depreciation and interest. GST on the purchase price can usually be claimed up front in your next BAS. Terms run one to seven years.

Finance lease and operating lease

The lender owns the truck and you pay to use it. Rentals are generally tax deductible. At the end you may pay a residual (finance lease) or hand it back (operating lease). Leases suit businesses that turn over fleet regularly.

Rent-to-own and hire

If you have a short contract or an uncertain pipeline, hiring from our fleet by the week or month costs more per day but carries no long-term commitment and includes maintenance. Talk to us about switching from hire to purchase later.

What a balloon does

A balloon (residual) is a lump sum at the end of the term. A 30% balloon on a $150,000 truck over five years lowers the weekly repayment noticeably, but you still owe $45,000 at the end. Set the balloon no higher than the truck's expected value at that point.

Why we don't quote "from 6.99%"

Commercial rates depend on your time in business, credit history, deposit and the age of the truck. A headline rate that most buyers can't get is misleading, and for consumer loans Australian credit law requires a comparison rate alongside any advertised rate. Our estimator uses an indicative rate you can change; your broker or lender will confirm the real figure.

What lenders ask for

• ABN and GST registration (usually two years, though low-doc options exist)
• Driver's licence and proof of address
• Recent financials or BAS statements
• Details of the truck (year, make, model, price, VIN)

Important

Trans Hire NSW is not a credit provider and does not provide credit assistance. We can introduce you to independent brokers who specialise in transport equipment. Finance is subject to lender approval and criteria.