Ute and work vehicle finance for tradies
If you're a tradie or contractor, your ute or van is a key part of the business. Even Financial Melbourne helps sole traders, partnerships and companies in Melbourne and across Victoria compare finance options for work vehicles from a panel of lenders, and understand the terms before signing.
We also arrange business finance for clients Australia-wide.
Finance options to consider
- Chattel mortgage: you own the vehicle and the lender holds security over it until the loan is repaid. See our chattel mortgage page.
- Hire purchase: the lender owns the vehicle until the final payment is made.
- Leasing: the vehicle is used under a lease, with different end-of-term options.
Each structure works differently in terms of ownership, fees, end-of-term payments and tax treatment. The right choice depends on your business and the vehicle, and your accountant can advise on tax. We can talk through the differences with you.
Business use or personal use?
Lenders ask what the vehicle will mainly be used for, and the answer can affect which products are available. If a ute is used for both work and personal travel, tell us at the start so the application is accurate.
What you may need to provide
Requirements vary by lender and loan, but commonly include:
- Photo ID
- Your ABN and details of your business structure
- A quote, invoice or contract of sale for the vehicle
- Recent bank statements
- Tax returns, financials or alternative documentation where a lender accepts it
- Details of existing debts and commitments
Lenders may also consider how long you've held your ABN and how long you've been trading. Some lenders accept newer businesses, subject to their criteria.
Common mistakes to avoid
- Comparing only the repayment. Look at the total cost, including fees and any final payment.
- Not planning for a final (balloon) payment. If your loan has one, plan how you'll meet it.
- Overlooking running costs. Insurance, registration, servicing and fuel are separate to the loan.
- Choosing a term longer than you'll keep the vehicle. You may owe more than it's worth if you sell or trade early.
- Assuming the tax treatment. Speak to your accountant about GST, depreciation and any limits that apply.
- Skipping checks on a private sale. Confirm the ownership and any money owing on the vehicle before you pay. See our Private Sale Guide.
FAQs
Can I finance a used ute?
Many lenders finance used vehicles, but their policies on age, kilometres and seller type vary. Tell us about the vehicle early.
Can I finance a ute from a private seller?
Some lenders do, usually with extra checks. Our Private Sale Guide explains what to look for.
Can I apply if I'm a sole trader?
Sole traders can apply. Lenders assess each application on its own circumstances, and approval is not guaranteed.
Does a ute loan affect my tax?
Tax treatment depends on your structure, how the vehicle is used and the type of finance. This page is general information only. Please speak to your accountant.
How do I get started?
Use our chattel mortgage calculator to estimate repayments, then send an enquiry. Calculator results are estimates only and are not an offer or approval of credit.