Trucks and semi-trailers are essential assets for Australian transport and logistics businesses, but purchasing them outright can strain working capital. Truck finance (also called prime mover finance or semi finance) allows you to acquire the equipment you need while preserving cash flow, with rates typically ranging from 7-12% p.a. depending on your business profile and the vehicle’s age and type.
Whether you’re an owner-operator expanding your fleet or an established transport business upgrading equipment, understanding your truck and trailer finance options helps you make informed decisions that support your business growth. The right financing structure can provide tax advantages, maintain cash reserves for operational expenses, and allow you to upgrade equipment as your business needs evolve.
Truck & Semi-Trailer Finance Options
Australian transport businesses have three primary financing structures for trucks and trailers, each with distinct advantages depending on your business circumstances and financial objectives.
💼 Chattel Mortgage
The most popular choice for truck and semi-trailer finance among Australian transport businesses. You own the vehicle from day one while the lender holds security over it. Benefits include immediate ownership, potential tax benefits including GST credits, tax-deductible interest payments, and depreciation claims on the asset. Best for established transport businesses wanting maximum tax advantages and long-term ownership.
📋 Finance Lease
The lender purchases the truck or semi-trailer and leases it to your business. At the end of the lease term, you may have the option to purchase it for a predetermined residual value. Features lower monthly payments compared to chattel mortgage, off-balance-sheet financing, easier equipment upgrades, and potentially tax-deductible lease payments. Best for businesses wanting to preserve balance sheet capacity or those who upgrade equipment regularly.
🔑 Commercial Hire Purchase
You hire the truck or trailer and make regular payments, with ownership transferring to you after the final payment. Offers structured repayments with eventual ownership, typically no large balloon payment, potential tax deductions on payments, and straightforward structure. Best for businesses wanting eventual ownership with predictable, structured payments.
Tax benefits are subject to business use and individual circumstances. Always consult your accountant before making financing decisions.
What Can You Finance?
Australian lenders typically finance a wide range of trucks and trailers, giving transport businesses flexibility in building and expanding their fleets.
Trucks
- Prime movers - Heavy-duty trucks designed to haul semi-trailers
- Semi trucks - Complete tractor-trailer combinations
- Rigid trucks - Single-unit trucks with attached cargo area
- Tippers and tipper combinations - For earthmoving and construction materials
- Crane trucks - Mounted crane equipment for lifting operations
- Tilt tray trucks - For vehicle transport and recovery
- Refrigerated trucks - Temperature-controlled freight transport
- Tanker trucks - Liquid or bulk material transport
- Delivery trucks and pantech trucks - General freight and distribution
Trailers
- Flat-top trailers and drop-deck trailers - Versatile freight hauling
- Curtain-siders - Easy side-loading access for palletised goods
- Refrigerated trailers (reefers) - Cold chain logistics
- Tanker trailers - Bulk liquid transport
- Livestock trailers - Animal transport with appropriate ventilation
- Car carriers - Multi-vehicle transport
- Tipper trailers - Construction and mining materials
- Skeletal trailers - Container transport
- Specialised heavy haulage trailers - Oversized or heavy loads
Combination Packages & Age Restrictions
Many lenders finance the complete package when purchasing truck and trailer together, which can sometimes provide better rates and streamlined approval processes.
While most lenders prefer vehicles under 15-20 years old, semi-trailers are often an exception. Some lenders extend financing for trailers up to 25-30 years old, particularly for well-maintained units from reputable manufacturers. Trucks typically have stricter age limits than trailers due to mechanical complexity and depreciation factors.
Typical Rates & Terms
Interest rates for truck and semi-trailer finance vary based on your business profile, the vehicle's age and condition, and your credit history. Here are indicative ranges as of October 2025:
Rates are indicative examples only. Actual rates depend on your business age, financial strength, credit history, and the trailer's age and condition.
Loan Amounts & Terms
💰 Loan Amounts
Typically $20,000 to $500,000+ depending on trailer type and your business circumstances. Larger amounts available for complete truck-trailer combinations or multiple units.
📅 Loan Terms
Commonly 1-7 years, depending on the trailer's age and expected working life. Newer equipment typically qualifies for longer terms, while older units may have shorter maximum terms.
💵 Deposit Requirements
May range from 0-30% depending on lender, business profile, and asset condition. Established businesses with strong financials may access 100% finance for newer trailers.
Qualification Guidelines
Most lenders evaluate truck and trailer finance applications based on several key criteria. While these are general guidelines, every application is assessed on its individual merit.
Business Requirements
- Valid ABN and GST registration
- Typically 12+ months trading history (some specialist lenders consider newer businesses)
- Demonstrated capacity to service repayments
- Clear business use for the trailer (51%+ business use)
Financial Indicators
- Consistent revenue through business bank statements
- Acceptable credit history for directors
- Sustainable business cash flow
Important: These are general guidelines only. If you're unsure whether you qualify, we strongly advise you to speak with our specialist brokers. If anybody can get a deal over the line on something tricky, they can.
Tax Considerations
Truck and semi-trailer finance may offer tax benefits, though this depends entirely on your individual circumstances and should always be discussed with your accountant.
⚠️ Important: Tax treatment varies based on your specific situation. Always consult your accountant before making financing decisions. The information provided here is general in nature and should not be relied upon as tax advice.
Traditional vs Streamlined Process
Traditional Approach
❌ Extensive paperwork and documentation requirements
❌ Long wait times for approval decisions
❌ Limited options if declined by one lender
❌ Manual comparison across multiple banks
Modern Comparison Approach
✅ Streamlined digital processes
✅ Quick comparison across 100+ lenders
✅ Specialist broker support for complex scenarios
✅ Efficient documentation workflow
Although each lender has different approval timeframes and your circumstances will vary, our streamlined system allows you to get approved on an apples-for-apples basis much quicker than any other broker or direct bank option.
Get Truck & Trailer Finance for Your Business
Ready to explore truck and semi-trailer finance options? Our free comparison tool connects you with specialist lenders who understand transport business needs.
Compare Truck Finance Options
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Why Choose Loan Phone
- Fast online comparison across 100+ lenders with specialised transport finance products
- Specialist transport finance expertise for unique circumstances and complex applications
- Efficient processing with streamlined documentation and digital workflows
- Support available from experienced brokers who understand transport industry needs and can navigate tricky approvals
Speak with Specialists
Need expert guidance on your truck or trailer finance application?
Email: loans@loanphone.com.au
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Related Resources
Explore these related guides to learn more about business asset financing options:
Disclaimer: This article provides general information only and should not be relied upon as financial or tax advice. Rates, terms, and eligibility vary by lender and individual circumstances. Tax benefits are subject to your specific situation and business structure. Always seek independent professional advice from a qualified accountant and financial adviser before making financing decisions.
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Last updated: 1 October 2025