Key highlights
- Delivery vans are financed on your ABN via chattel mortgage
- Match the loan term to high-kilometre working life
- Low-doc options are available for many established operators
- Compare 80+ lenders to match repayments to delivery income
To finance a delivery van, you apply on your ABN for a chattel mortgage or lease secured against the vehicle, then repay over a term matched to your delivery volumes. Because delivery vans cover high kilometres, term and reliability matter as much as rate. Overdrive compares more than 80 banks and non-bank lenders on one application, helping businesses and owner-drivers finance a new or used delivery van without approaching each lender separately.
Financing a delivery van
Most delivery businesses fund their vans with a chattel mortgage, where the lender advances the purchase price and holds the van as security until the loan is repaid, and you own it throughout. That usually allows a claim for interest and depreciation on the business-use portion, which your accountant should confirm. Delivery vans work hard and cover high kilometres, so matching the loan term to the van's realistic working life is important — you do not want to be repaying a van you have already retired. Terms typically run one to seven years, with balloon options available, and both compact and large panel vans finance readily.
New, used and multiple vans
New delivery vans finance easily and attract competitive rates. Used vans are widely funded and can reduce your outlay, though high-kilometre vehicles may be priced higher or offered on shorter terms. If you run more than one van, you can finance each separately or explore a facility covering several, which keeps rates and administration consistent as you scale. A broker can compare both approaches so your delivery operation stays efficient on the books as well as on the road.
Documents and approval
For a straightforward application you will generally need your ABN, identification and the purchase invoice. Established operators can often apply with low-doc options that need fewer financial documents, while newer businesses may provide bank statements or a deposit. If you deliver under a contract with a retailer or logistics network, showing that agreement can strengthen your application. For eligible applicants, same-day pre-approval and quick settlement may be available, subject to lender criteria.
Rates and running costs
Delivery van finance starts from around 6.55% p.a. for strong, asset-backed deals, with lower-doc, older or cheaper vans and weaker credit priced higher — indicative and subject to lender assessment. Since delivery margins can be tight, weigh the rate alongside fees, fuel, servicing and how often you expect to upgrade. Comparing lenders at once helps you protect your margin and choose a structure that suits how your delivery business earns.
Keeping your deliveries on schedule? Get a free quote and let Overdrive compare 80+ lenders to find delivery van finance that matches your kilometres, contracts and cash flow.
Frequently Asked Questions
Can I finance more than one delivery van?
Yes. You can finance each van separately or explore a facility covering several vehicles, which keeps rates and administration consistent as you scale. The right approach depends on how many vans you run and your growth plans. A broker can compare both options across multiple lenders for your operation.
Does a delivery contract help my application?
It can. A signed agreement with a retailer or logistics network demonstrates expected income, which reassures lenders assessing a newer or growing business. It is not always required, but it can strengthen a borderline application. Pair it with your ABN, identification and any requested financials to keep the process moving.
Should I finance a new or used delivery van?
Both are financed regularly. A used van lowers repayments and can suit tight delivery margins, but consider kilometres, reliability and running costs. High-kilometre vans may attract higher rates or shorter terms. Matching the van's condition and the loan term to your delivery volumes keeps total costs sensible over time.
Can I claim a delivery van on tax?
Where the van is used for deliveries, you may claim the business-use portion of interest and depreciation, and running costs like fuel and servicing may also be deductible. The exact treatment depends on your structure and records, so keep a logbook and confirm your claims with your accountant.
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