Financing a rigid truck usually starts with a chattel mortgage: the loan is secured against the truck, you own it from settlement, and you repay over one to seven years with an optional balloon. Rigids cover a huge range of bodies and weights, so lenders assess the configuration and your business. Overdrive compares 80+ banks and non-bank lenders on one application to match the structure to how you use the truck.
Key highlights
- Chattel mortgage is the go-to structure for rigid trucks.
- Rigid configurations vary widely, from light bodies to heavy tandems.
- Balloon payments reduce monthly repayments to suit cash flow.
- Pre-approval sets your budget and speeds up settlement.
Overdrive is a specialist truck finance broker comparing 80+ banks and non-bank lenders on one application. Compare truck finance options or get a free quote in minutes.
Choosing a finance structure
A rigid truck, where the cab and load area sit on one chassis rather than an articulated trailer, is most often financed with a chattel mortgage. You take ownership from settlement, the lender holds security against the truck, and you repay over one to seven years. A balloon or residual payment at the end can lower your monthly repayments. Because rigids come in so many forms, from small curtain-siders to heavy tandem-drive units with specialist bodies, the right term and structure depend on the body type, how long you will keep it and your tax position. Comparing lenders helps you match the loan to the truck.
What lenders assess
Lenders consider the truck and the business together. For the asset, they look at the make, age, kilometres, gross vehicle mass and body type, since a newer, versatile rigid holds value while an older or highly specialised one may be priced higher. On the business side, they review your ABN and GST registration, time trading, any freight or supply contracts, and your credit history. Established operators may access low-doc finance without full financials. Newer businesses can still be approved, particularly with a deposit, a supporting contract or property security to help offset limited history and sharpen the rate, subject to lender criteria.
Deposit, balloon and repayments
Rigids suit a wide range of operators, so repayment structures are flexible. A balloon of 20 to 40 per cent lowers your monthly repayments to match your cash flow, and payments can be set weekly, fortnightly or monthly to line up with when invoices are paid. No deposit is common for strong applicants, while a deposit or trade reduces the amount financed and can improve the rate. Just remember any balloon is still owed at term end and will need to be paid, refinanced or traded. Indicative rates start from around 6.55% p.a. for strong, asset-backed deals; older trucks or weaker credit are priced higher, subject to lender assessment.
Get pre-approved first
Pre-approval tells you your budget and lets you negotiate as a cash buyer, whether you are buying from a dealer, privately or at auction. Have your ABN, GST and licence details, a rough idea of the truck and price, any freight contracts, and recent bank statements ready. A broker submits one application and compares lenders behind the scenes, so you are not filling in the same forms for multiple banks. For eligible applicants, same-day pre-approval and 24 to 48 hour settlement may be available, which helps when the right rigid becomes available and you want to secure it promptly.
Whatever body your rigid carries, Simon Kendrick at Overdrive can compare 80+ lenders and structure repayments around your work. Request a free quote to see an indicative rate and get pre-approved before you buy.
Frequently Asked Questions
What is the difference between a rigid and an articulated truck for finance?
A rigid has the cab and load area on one chassis, while an articulated setup uses a prime mover and separate trailer. Both are financed similarly, usually with a chattel mortgage, but an articulated combination may be financed as two assets. Lenders assess each on its condition, value and your business, subject to lender criteria.
Can I finance a rigid truck with a specialised body?
Yes. Rigids with tipper, tanker, crane or box bodies are financed regularly, usually under one chattel mortgage covering the truck and body. Lenders may look more closely at highly specialised bodies because they affect resale value. Comparing lenders helps you find one comfortable with your configuration, subject to lender assessment.
How much can I borrow for a rigid truck?
Loan amounts are indicative and depend on the truck's value, your deposit and your business strength. Rigids span a wide price range, so borrowing capacity varies. Comparing multiple lenders helps you access the amount and structure that suit the purchase and your cash flow, subject to lender criteria.
Is rigid truck finance tax deductible?
Generally, a chattel mortgage may let you claim interest and depreciation as business expenses, and GST on the purchase can often be claimed in your next activity statement. Treatment depends on how the truck is used and your circumstances, so always confirm the detail with your accountant.
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