Model your heavy vehicle finance repayments and compare chattel mortgage, hire purchase, and finance lease structures side by side. See GST credits, depreciation benefits, and instant asset write-off eligibility for trucks, buses, and prime movers.
| Frequency | Repayment | Total interest | Total cost |
|---|---|---|---|
| Weekly | $901.47 | $34,381 | $234,381 |
| Fortnightly | $1,803.88 | $34,505 | $234,505 |
| Monthly(selected) | $3,913.23 | $34,794 | $234,794 |
Same vehicle, same inputs. Different structures change the tax treatment and total cost.
| Chattel Mortgage | Hire Purchase | Finance Lease | |
|---|---|---|---|
| Monthly repayment | $3,913.23 | $3,913.23 | $3,913.23 |
| Total cost | $234,794 | $234,794 | $234,794 |
| Total interest | $34,794 | $34,794 | $34,794 |
| GST credit | $18,182 | On each payment | On each payment |
| Annual depreciation benefit | $4,545 | $4,545 | N/A (payments deductible) |
| Annual interest deduction | $1,740 | Not until ownership | Included in payments |
| Est. total tax benefit | $49,608 | $22,727 | $58,698 |
| Est. net cost after tax | $185,186 | $212,067 | $176,095 |
Tax benefit estimates are indicative only and based on simplified assumptions. Heavy vehicles are not subject to the ATO car depreciation limit. Actual tax outcomes depend on your individual circumstances, business structure, and other factors. Consult your accountant or tax adviser for advice specific to your situation.
Switching from monthly to weekly repayments could save you $413 in interest over the life of this finance.
The structure comparison table shows how chattel mortgage, hire purchase, and finance lease differ for the same inputs. The tax treatment can make a significant difference to the net cost of the vehicle.
Toggle the instant asset write-off on to see whether your vehicle qualifies. For eligible assets under $20,000, the year one tax benefit can substantially reduce the effective cost.
A higher balloon reduces your regular repayments but increases the total cost and creates a lump sum obligation at the end. Use the slider to see the trade-off.
Base rate entities (turnover under $50M) pay 25% company tax. Non-base rate entities pay 30%. The tax rate affects the value of every deduction, so switching between them shows a meaningful difference in net cost.
Most lenders want to see at least 12-24 months of trading history. Transport and logistics businesses with established contracts are viewed favourably.
Lenders review your business financials (profit and loss, balance sheet, or recent tax returns) to assess serviceability. Healthy cash flow is the key indicator for heavy vehicle finance.
The type, age, condition, and brand of the heavy vehicle affect the rate and terms. New vehicles from major manufacturers attract better rates. Lenders have maximum age limits for used heavy vehicles.
Your personal and business credit history influences the rate. A clean credit file opens access to the most competitive rates. Some non-bank lenders can work with less-than-perfect credit.
Compare heavy vehicle finance from 50+ lenders. Find a structure and rate that works for your business.
Subject to lender approval, terms and conditions apply.
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Heavy vehicle finance rates in Australia typically range from 5.5% to 9% p.a. depending on the vehicle type (truck, bus, prime mover, trailer), whether it is new or used, your business trading history, financial position, and the lender. New heavy vehicles from established manufacturers generally attract lower rates than used or imported units.
Yes. Most lenders finance used heavy vehicles up to 15-20 years old, though terms may be shorter and rates slightly higher than for new vehicles. The vehicle must be roadworthy and registered. Lenders will often cap the loan term so the vehicle is no older than 20-25 years at the end of the finance.
Finance terms for heavy vehicles typically range from 1 to 7 years. The right term depends on the expected working life of the vehicle and your cash flow. Shorter terms mean higher repayments but less total interest. Longer terms reduce repayments but increase the total cost.
Not always. Many lenders offer up to 100% financing for heavy vehicles, particularly for established businesses with strong trading history. A deposit of 10-20% can help secure a lower interest rate and reduce your repayments. Some lenders may require a deposit for used vehicles or newer businesses.
No. The ATO car depreciation limit ($68,108 for 2025-26) only applies to passenger vehicles designed to carry fewer than 9 passengers and with a gross vehicle mass under 3.5 tonnes. Heavy vehicles such as trucks, buses, and prime movers are exempt from this limit. You can claim depreciation on the full cost of the vehicle.
A balloon (or residual) is a lump sum due at the end of your finance term. It reduces your regular repayments during the loan but means you owe a larger amount at the end. For heavy vehicles, balloons of 20-30% are common. You can pay it out, refinance it, or in the case of a lease, return the vehicle.
Results are estimates only and should not be relied upon for financial decisions. Actual heavy vehicle finance repayments will depend on the lender, your credit profile, and the specific terms offered. Interest rates used are for illustration purposes only and may not reflect current market rates.
Subject to lender approval, terms and conditions apply.
This calculator is general information only and is not financial advice.