Truck and prime mover finance: chattel mortgage, finance lease and balloons

Last updated 6 November 2026 · Reviewed by 360 Asset Finance Compliance

What kinds of trucks can be financed?

Lenders on our panel finance prime movers, rigid trucks, tippers, trailers and specialist heavy vehicles. All funding is subject to the lender's assessment.

Can I finance a used truck or one from a private seller?

Often, yes. It depends on the truck, its age and condition, and the lender's criteria. For a private sale, the lender may need an inspection, an invoice and a PPSR check that there's no money owing on the truck.

How do chattel mortgage, finance lease, CHP and operating lease compare for a truck?

A general summary only: exact terms depend on the lender and the agreement.

How do balloon payments work on a finance lease for a new prime mover?

On a finance lease, the lump sum left until the end is called a residual. It's agreed at the start and written into the lease. Because your payments don't have to cover that part of the cost, each payment is lower.

When the lease ends, the residual falls due. Depending on the agreement, you can pay it and take over the prime mover, refinance it, or trade the truck in and put the proceeds towards it. Finance charges apply to the residual for the whole term, so the total cost is higher. Don't assume the truck will be worth the residual at the end, especially after high kilometres. Whether a residual is available, and its size, depends on the lender, the truck and the agreement.

Chattel mortgage or finance lease for a new prime mover: what about tax and cash flow?

Neither suits every business. The trade-offs:

• Ownership. Under a chattel mortgage your business owns the truck. Under a finance lease the lender owns it.
• GST. Ask your accountant how GST applies to your business.
• Cash flow. Both can lower regular payments with a balloon or residual, with a lump sum at the end and a higher total cost.
• Tax. Depreciation, interest and lease payments are treated differently, depending on your business and how the truck is used.

Your accountant can tell you how each would be treated for your business, and your broker can compare repayments and total cost across our panel.

What are the pros and cons of financing a truck?

Possible advantages

• You can spread the cost of the truck instead of paying for it all at once.
• It can leave working capital free for fuel, wages and maintenance.
• You can choose a structure, with or without a balloon or residual, to suit how you run the truck.

Possible drawbacks

• Interest and fees add to the total cost of the truck.
• A balloon or residual leaves a lump sum to pay at the end.
• The truck is security for the finance, and with a lease you don't own it during the term.

How do I apply for truck finance, step by step?

1. Choose the truck, prime mover or trailer and get a quote or invoice.
2. Talk to your accountant about how each structure would be treated for tax in your business.
3. Tell your broker about the truck, your business and how you'll use it.
4. Compare structures, balloon or residual options and total cost across the panel, and choose one.
5. Your broker prepares the application. The lender will assess your application against its criteria.
6. If it's approved, you sign the documents and the lender pays the seller at settlement.

How can 360 Asset Finance help?

Lenders specialise in different assets and set their own criteria for trucks and trailers. We're a broker, not tied to one lender. We can:

• arrange chattel mortgages, finance leases, CHP and operating leases for trucks, prime movers and trailers through our lender panel, subject to the lender's criteria;
• compare repayments, balloon or residual options and total cost across our panel;
• tell you what the lender needs, commonly a quote or invoice for the truck, your ABN and business details;
• work alongside your accountant, who can explain the tax side;
• prepare the application, work with the lender and keep you updated through to settlement;
• help you plan the next truck as your business grows.

FAQs

Sources and further reading:business.gov.au: Leasing or buying vehicles and equipment · ATO: GST and motor vehicles · ATO: Simpler depreciation rules for small business

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. Finance is provided by the lender you choose and is subject to its lending criteria; fees and charges apply. 360 Asset Finance is a trading name of Kuone Consulting Pty Ltd (ABN 75 647 329 002), Australian Credit Licence 566705.