The short verdict
For most owner-drivers and transport operators, the best truck finance is a chattel mortgage over the truck, with a term matched to its working life and repayments that suit how your contracts pay. A finance lease suits fleets that rotate trucks. Older trucks, private sales or a deposit gap may be better funded with a property-secured loan if you have equity.
At a glance
- A chattel mortgage is our pick for owner-drivers who keep their trucks.
- Leases suit fleets that replace trucks on a cycle.
- Lenders weigh the truck's age, your contracts and your driving history in the industry.
- Property security can fund older trucks or private sales other lenders decline.
- Insolvencies remain elevated in transport, so lenders look closely at cash flow.
- Our pick
- Chattel mortgage over the truck
- Runner-up
- Finance lease (fleets)
- Security
- The truck or trailer itself
- Typical documents
- ABN, licence, truck invoice, statements, contracts
Truck finance is asset finance for a prime mover, rigid truck, tipper, trailer or specialist body, usually secured over the vehicle itself. Owner-drivers, small fleets and businesses that move their own goods all use it. The best truck finance matches the term to the truck’s working life and the repayments to how your freight work actually pays, because a truck that sits idle while repayments run is the fastest way to trouble in this industry.
Why does truck finance need a careful choice in 2026?
Transport is a tough sector right now. The Reserve Bank’s October 2026 Financial Stability Review reports that company insolvencies remain elevated in transport, hospitality and construction, driven by wage and input cost pressures. It also notes that most companies entering insolvency are small, with fewer than 20 full-time employees.
None of that means you can’t or shouldn’t finance a truck. It means lenders look harder at contracts and cash flow, and you should too. A structure that leaves breathing room for a slow month, a breakdown or a late-paying customer is worth more than the lowest headline repayment.
Which truck finance is best? Our ranking
1. Our pick: chattel mortgage truck finance
For owner-drivers and operators who keep their trucks for years, a chattel mortgage wins. Your business owns the truck from day one, the lender holds security over it, and the term can be set to match its working life. A balloon can lower repayments, but on a hard-working truck that loses value steadily, a big balloon can leave you owing more than it’s worth. Our chattel mortgage vs lease verdict sets out the trade-offs.
2. Runner-up: a finance lease
Fleets that replace trucks on a cycle, or businesses that would rather not own heavy assets outright, often prefer a lease. The financier owns the truck, you pay for its use over the term, and you decide at the end whether to pay the residual, return it or upgrade. Ask your accountant how the lease payments and the residual will be treated.
3. A property-secured loan, for trucks asset finance won’t touch
Older trucks, private sales, imported or heavily modified units, and buyers with a credit mark can all fall outside asset financiers’ rules. If you or a director own property with equity, a property-secured business loan, from $20,000 to $5,000,000, can fund the truck with far fewer restrictions on the vehicle itself. The trade-off is putting property on the line. Read the best loan when you own property.
4. An unsecured loan, for deposits and extras only
Unsecured lending is rarely the best way to buy the truck itself. It can, however, fill a modest gap: a deposit, a body modification, registration or fit-out items. Keep it small and short.
How truck finance options score
| Test | Chattel mortgage | Finance lease | Property-secured loan | Unsecured loan |
|---|---|---|---|---|
| Total cost in dollars | Strong: the truck is the security | Strong: financier owns it | Strong for larger sums | Weak for the whole truck |
| Fit to the job | Strong for owner-drivers who keep trucks | Strong for rotating fleets | Fair: best for awkward purchases | Fair for deposits and extras only |
| Security | Strong: just the truck | Strong: financier owns it | Weak: property at risk | Fair: director guarantee |
| Flexibility | Fair: term and balloon choices | Fair: residual fixed upfront | Fair: fixed terms | Fair: short, fixed schedule |
| Paperwork | Fair: invoice, licence, statements, contracts | Fair: as for chattel | Weak: valuation and more | Strong: statements and ID |
Our verdict
Our verdict: let the truck secure itself, with breathing room built in
- Best for
- Owner-drivers and operators who'll run one truck for the long haul: a chattel mortgage whose term ends before the truck is worn out. Fleets that replace on a cycle: a finance lease. Older trucks or private sales: property-secured lending if you have equity.
- Not for
- A large balloon on a hard-working truck with no plan to pay it, or funding the whole truck with short, expensive unsecured money.
- Check before you sign
- The full dollar cost with any balloon added, the age rules at the end of the term, insurance requirements, early payout terms and what happens if the truck is off the road.
Got a truck or trailer picked out? Tell us about it and your contracts, and a specialist will recommend the structure. Enquiring doesn’t trigger a credit check.
What do truck financiers look for?
Expect lenders to ask about four things:
- The truck. Make, model, age, kilometres, price, dealer or private sale, and any body or trailer.
- The work. Contracts, subcontract agreements or regular customers. A signed contract is one of the strongest supports you can bring.
- You. Industry experience, licence class, how long your ABN has been active, and your credit history.
- The numbers. Bank statements or tax returns, existing truck and equipment debts, and how repayments fit around fuel, tyres, insurance and maintenance.
The tax side matters too. The ATO’s instant asset write-off page explains that the car limit only covers passenger vehicles built for a load under one tonne and fewer than 9 passengers, so a heavy vehicle sits outside it. The $20,000 instant asset write-off, now a permanent measure from 1 July 2026, is limited to businesses under $10 million in aggregated turnover and applies per asset, and most trucks cost far more than that. Your accountant should model the options.
Illustrative example: an owner-driver’s first prime mover
Illustrative only; round numbers.
A driver with eight years’ experience has a signed two-year subcontract with a freight company. She’s buying a $220,000 used prime mover from a dealer and has a $30,000 deposit. She rents her home.
Verdict: a chattel mortgage over the truck, term set so the truck isn’t too old at the end, and only a small balloon, because she’ll run it hard and its value will fall. She keeps a separate small line of credit for tyres and breakdowns so a bad month doesn’t force a missed repayment. A large balloon to shave the repayment would have looked cheaper today and cost her later.
Should you take a balloon on truck finance?
Only with your eyes open. A balloon, or residual, is a lump sum left owing at the end of the term in exchange for lower regular repayments. On a car that holds its value, that can be sensible. On a prime mover doing long hauls, the truck’s value can fall faster than the loan balance, leaving you to fund the gap from savings, a refinance or a sale that doesn’t cover it.
A balloon makes sense when you have a firm plan to trade the truck in before it’s worn, when your contracts are long enough to cover the term, and when the residual is set conservatively. It makes little sense as a way to squeeze a repayment into a budget that otherwise doesn’t work. If the numbers only add up with a big balloon, the truck may be too expensive for the work.
What if the work dries up?
Talk to the financier before a payment is missed, not after. Many will consider a short payment arrangement for a borrower who calls early with a plan. Selling the truck may be the cleanest exit if the contract has ended for good; check the payout figure first so you know whether the sale will clear the debt. If several debts are now competing for the same cash, our verdict on consolidating business debt explains the options.
How to get the best truck finance
- Line up the work first. Contracts and customer letters strengthen every application.
- Choose the truck for the work, not the other way around.
- Match the term to the truck’s life and keep any balloon realistic.
- Budget for running costs before you settle on a repayment.
- Get itemised quotes for the truck, trailer and body.
- Compare offers on total dollars with the total cost comparer.
Truck, ute or fleet?
Light commercials and work cars are covered in our business car loan verdict. Operators running several trucks should read our vehicle fleet verdict, and transport businesses looking beyond the truck itself, at fuel cards, working capital and depots, should see the best loans for transport businesses. How the wider asset finance market works is on our asset finance page, and every situation sits on the best business loans hub.
Ready to get your truck working?
The right structure keeps the truck earning and the repayments manageable through the slow weeks. Check whether you qualify for truck finance with a short enquiry.
No credit check happens when you first make contact, and we don’t hand your details to every financier in the market. A real specialist works on your file. Give us the truck details, your contracts and your existing repayments accurately, and we’ll match you properly first time.
Questions owners ask
What is the best way to finance a truck in Australia?
For most buyers who intend to keep the truck, a chattel mortgage: your business owns it from day one, the truck secures the loan and the term can match its working life. A finance lease suits fleets that replace trucks regularly. For older trucks or private sales that asset financiers won't take, a property-secured loan is often the fallback.
Can a new owner-driver get truck finance?
Often, yes, especially with experience driving for someone else, a signed contract or subcontract, a reasonable deposit and a clean credit file. A brand-new ABN narrows the options, and the truck's age and price matter more. Evidence of the work lined up for the truck is one of the strongest things you can bring.
Does the car limit apply to trucks?
The ATO's car limit applies to passenger vehicles designed to carry fewer than 9 passengers and a load of less than one tonne. Trucks built to carry heavier loads fall outside that definition. Depreciation and write-off rules still apply, so check the tax treatment with your accountant.
How old can a truck be for finance?
It depends on the financier. Many set limits on the truck's age at the end of the term, so an older truck may get a shorter term or need a different structure. Private sales and imported or heavily modified trucks get extra scrutiny. A property-secured loan avoids most age rules because the property is the security.
Can I finance a trailer or a body build with the truck?
Usually, yes. Trailers, tippers, refrigeration units and custom bodies are commonly financed with the truck or as separate items under the same facility. Get itemised quotes so the financier can see what each part is worth, and check that the term suits the shortest-lived item.
Is truck finance harder to get now?
Transport is under scrutiny. The Reserve Bank's October 2026 Financial Stability Review notes company insolvencies remain elevated in transport, alongside hospitality and construction. Expect lenders to look closely at contracts, cash flow and existing debts. Presenting those clearly, with signed work lined up for the truck, makes a real difference.
Reviewed by the Best Biz Loan editorial team · updated 5 October 2026
We judge loan structures and lender types against the same five tests, never named lenders' products, and we never publish rates. How we judge
