A chattel mortgage is the most popular way Australian businesses finance a truck. Here’s the complete guide.
Key highlights
- You own the truck from day one; the lender registers a mortgage as security
- Truck security means sharp rates, fast approvals and terms of one to seven years
- GST-registered businesses may claim the GST, plus depreciation and interest; confirm with your accountant
- A balloon can lower repayments, or be paid out to own outright
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How it works
You own the truck from day one, and the lender registers a mortgage over it as security until the loan is repaid. Because the truck secures the loan, rates are sharp and approvals are fast, with terms from one to seven years.
The tax appeal
For GST-registered businesses, you can generally claim the GST on the purchase in your next BAS, and claim depreciation and interest as deductions — confirm with your accountant. A balloon can lower repayments, or be paid out to own the truck outright.
Chattel mortgage vs lease depends on your tax position and whether you want ownership. Get an obligation-free quote and we’ll compare structures across 80+ lenders.
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