Ute and van finance for tradies and sole traders

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

Which finance options suit a work ute or van?

For a vehicle used mainly in your business, the common structures are:

• Chattel mortgage: you own the vehicle straight away, and the lender takes a charge over it until the loan is repaid.
• Commercial hire purchase: you hire the vehicle with the intention of buying it, and ownership passes to you with the final payment.
• Finance lease or operating lease: the lender owns the vehicle and you pay to use it, with options at the end of the term.

If the ute is mainly for personal use, a car loan may suit instead. Lenders on our panel finance new and used utes and vans.

What is commercial hire purchase with a balloon, and could it suit a tradie buying a van?

With CHP, the lender buys the van and you hire it from them with regular payments. A balloon is a lump sum, agreed at the start, that you pay with your final payment. Because part of the cost is left until the end, your regular payments are lower, which can help with cash flow.

The trade-off is that finance charges apply to the balloon for the whole term, so the total cost is generally higher. You'll need to pay the balloon, refinance it, or sell or trade in the van to cover it. Don't assume the van will be worth the balloon amount, especially if it does high kilometres. Whether CHP suits you depends on your cash flow, how long you'll keep the van and how you'll pay the balloon.

Chattel mortgage, CHP or novated lease: how do they compare for a ute?

Can a sole trader use a novated lease?

Generally not. A novated lease is an agreement between you, your employer and the finance provider, with payments made from your pay through salary packaging. Self-employed people and sole traders generally can't use one, because there's no separate employer to make the payments. If that's you, a chattel mortgage or CHP for a vehicle used mainly in your business may be an option.

Does it matter if I use the ute for work and personal use?

Yes. If the finance is mainly for personal or household use, consumer credit laws apply, and we must check that the loan meets your needs and that you can afford the repayments. Finance for a business vehicle is generally treated differently. Your broker will explain which rules apply, and your accountant can explain how mixed use affects your tax.

My income is irregular. How does a broker help compare lenders?

Lenders set their own criteria and can ask for different evidence of income or business performance, such as bank statements or financial statements. Because we're not tied to one lender, we can compare options across our panel. Your broker will assess your income and financial situation, and the lender will assess your application against its criteria.

What are the pros and cons of financing a ute or van?

Possible advantages

• You can spread the cost of the vehicle instead of paying for it all at once.
• It can leave cash in the business for tools, materials and wages.
• A balloon can lower your regular repayments, if that suits your cash flow.

Possible drawbacks

• Interest and fees add to the total cost of the vehicle.
• A balloon leaves a lump sum to pay, refinance or cover by selling the vehicle at the end.
• The vehicle is security for the finance, so you need to keep up the repayments.

How do I finance a work ute or van, step by step?

1. Choose the ute or van and get a quote or invoice. For a private sale, the lender may need to check the vehicle and confirm there's no money owing on it through a PPSR search.
2. Work out how much you'll use it for work and how much for personal use.
3. Talk to your broker about your business and the vehicle, and compare structures across the panel.
4. Your broker prepares the application with your ABN and the documents the lender asks for. The lender will assess your application against its criteria.
5. If it's approved, you sign the documents and the lender pays the seller at settlement.

How can 360 Asset Finance help?

We're a broker working with a panel of specialist lenders. We can:

• arrange chattel mortgages, CHP and leases for utes and vans, new or used, through our lender panel, subject to the lender's criteria;
• compare repayments, balloon options and total cost across our panel;
• tell you what the lender needs, commonly a quote or invoice for the vehicle and your ABN;
• work alongside your accountant, who can explain GST, tax and mixed use;
• prepare the application, work with the lender and keep you updated through to settlement;
• help you plan your next vehicle as your business grows.

FAQs

Sources and further reading:business.gov.au: Leasing or buying vehicles and equipment · ATO: Deductions for motor vehicle expenses · Moneysmart: Car loans

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.