FAQs

Operators can select from Chattel Mortgage, Lease, CHP and Rent-to-Own to fund heavy vehicles. The most suitable facility is the one that is compatible with their accounting method and suits their approach to their balance sheet and financial objectives.

The same credit products are available for funding semi-trailers. Rates, terms, loan limits and conditions will vary according to the lender, borrower and for used vehicles.

Sole traders with an ABN can apply for commercial financing for heavy vehicles.

Used heavy vehicles can be funded with the choice of Chattel Mortgage, Lease, CHP and Rent-to-Own. The age and condition of used vehicles is assessed by lenders as part of the application review process. Loan limits may apply.

Terms are offered by lenders following an assessment of the application. Terms of up to 7 years are typical across the heavy vehicle lending market.

Rent-to-Own and Lease payments are deductible under ATO rulings. Interest on Chattel Mortgage and CHP payments is deductible but the balance of the payments is not. These facilities deliver tax deductions when the heavy vehicle is depreciated in line with ATO schedules.

Loan limits including borrowing the full purchase price of a heavy vehicle are subject to lender approval. It is typical for many applications to be approved for the full amount.

Interest rates on truck trailer loans vary with the type of credit facility, the credit profile of the applicant, and the lender.

Asset acquisition credit is typically arranged with a fixed interest rate. This rate stays the same through the entire term of the loan.

Balloons and residuals are amounts set aside for finalising at the end of the term. Balloon applies to CHP and Chattel Mortgage and residual to Leasing. Balloons are negotiable, residuals in line with ATO rulings.