Key highlights
- Chattel mortgage and lease options suit most work vehicles
- Sole traders and companies can apply on their ABN
- Claim the business-use portion of interest and depreciation
- Compare 80+ lenders in one application for new or used vehicles
A work vehicle — ute, van, truck or car used for business — is generally financed with a chattel mortgage or lease on your ABN, secured against the vehicle and repaid over a term that suits your cash flow. You may claim the business-use portion at tax time. Overdrive compares more than 80 banks and non-bank lenders in one application, helping sole traders and companies finance almost any work vehicle on competitive terms without shopping each lender.
Choosing how to finance a work vehicle
The most common structure for a work vehicle is a chattel mortgage, where the lender advances the purchase price and holds the vehicle as security until the loan is repaid, and you own it throughout. This usually allows a claim for interest and depreciation on the business-use portion — confirm with your accountant. Some businesses prefer a lease or commercial hire purchase, which can be treated differently on the books. Terms typically run one to seven years, with balloon or residual options to lower monthly repayments. The best structure depends on how long you will keep the vehicle and how you want it to appear in your accounts.
Which vehicles count as work vehicles
A work vehicle is any vehicle used mainly for business — a tradie's ute, a courier's van, a rep's car, a farm 4WD or a light truck. What matters to lenders is the business use and your ability to repay, not the badge on the bonnet. Passenger vehicles like cars and some dual cabs can carry a depreciation cost limit, while commercial vehicles often do not, so the vehicle type can affect your tax position. Keep records of business use and confirm the treatment with your accountant.
What you need to apply
For a straightforward application you will generally need your ABN, identification and the purchase invoice for the vehicle. Established businesses can often apply with low-doc options that need fewer financial documents, while newer ABNs may provide bank statements or a deposit. Lenders assess your credit profile, trading history and the vehicle's value and age. For eligible applicants, same-day pre-approval and settlement within 24 to 48 hours may be available, subject to lender criteria.
Getting a competitive deal
Work vehicle finance starts from around 6.55% p.a. for strong, asset-backed deals, with lower-doc, older or cheaper vehicles and weaker credit priced higher — indicative and subject to lender assessment. Beyond the rate, compare establishment and account fees, balloon flexibility and early-payout terms. Because a broker compares many lenders at once, you can weigh cost against flexibility in one place rather than approaching each lender individually.
Need the right vehicle for the job? Get a free quote and let Overdrive compare 80+ lenders to find work vehicle finance that suits your business, cash flow and tax position.
Frequently Asked Questions
What counts as a work vehicle for finance?
Any vehicle used mainly for business — a ute, van, car, 4WD or light truck. Lenders focus on the business use and your capacity to repay rather than the vehicle type. Note that passenger vehicles can carry a depreciation cost limit for tax, which your accountant can explain for your specific vehicle and use.
Can a sole trader finance a work vehicle?
Yes. Sole traders with an active ABN can generally access business vehicle finance, often through low-doc options that need fewer documents. Approval depends on your credit, trading history and the vehicle. Many sole traders finance work vehicles this way, subject to lender criteria, with a broker comparing suitable options.
Is a chattel mortgage or lease better?
It depends on how you want the vehicle treated on your books and at tax time. A chattel mortgage means you own the asset and may claim interest and depreciation, while a lease can offer different accounting treatment. Your accountant can advise which structure best suits your business and cash flow.
Can I finance a used work vehicle?
Yes. Used work vehicles are commonly financed and can lower your total cost. Lenders assess age, kilometres and value, and older or high-kilometre vehicles may attract higher rates or shorter terms. Both dealer and private-sale purchases can usually be arranged through a broker comparing several lenders at once.
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