Truck Finance Perth

Truck Finance Perth – the tax benefits, the cost implications, and finding the ideal solution for your business

Low rate truck loan options in Perth

Flexible commercial vehicle finance options

Whether companies are in mining or farming, and no matter what load they need to haul – truck finance is an essential component of doing business in Perth and all over Australia. With vast distances to cover and harsh conditions all year round, Western Australian industry needs modern, reliable trucks – and a range of flexible options for funding.

Matching the nature of your business with specialist lenders is the key to finding the most cost-effective finance solutions for transport.  

How we help with your ideal finance option

At Savvy, we understand that time off the road is usually money down the drain, and that’s why we take your funding needs seriously – and find your solutions fast. Our highly-trained commercial finance brokers will look at your business specifics and what you need to achieve, and then they’ll present practical, tailored options.

We deal with more than twenty-five specialist lenders who offer a wide range of products designed specifically for the transport industry.  

Why you should choose Savvy to find truck finance

When they’re sourcing truck finance, Perth businesses turn to Savvy. More lenders, expert consultants, quicker solutions

Truck finance options

Finance Lease

finance lease comes with a residual amount which is due at the end of the term. That essentially means you're only paying down the vehicle's depreciation during the agreement – not the total value of the truck. When the term ends, you can pay the residual and own the vehicle, refinance and extend the lease, or trade the truck in and start a new agreement. You account for finance as an operating expense until the term ends, so you can't claim for depreciation, but all payments are tax-deductible.  

The best practice is being upfront with your property ownership details, ongoing expenses, and debts or other loans. You’ll also need to provide information on the car’s make, model, colour, and Vehicle Identification Number (VIN), registration details, and purchase price before a lender or broker will approve your car loan. Unsure about applying for a car loan? Talk to the team at Savvy for expert advice and help.

Operating Lease

A truck or heavy vehicle operating lease provides businesses with a fully maintained truck, but they carry none of the risks of ownership or asset disposal. Operating leases include running costs like insurance and fuel, servicing and maintenance, and even registration. You pay one monthly charge for everything, removing most of the administrative burden of operating individual or fleets of heavy vehicles. At the end of the lease, you can hand the truck back, or you can make an offer to buy.  

Finance Lease 

Operating Lease 

1 – 5 Years 

1 – 5 Years 

The business eventually owns the asset 

The lender owns the asset 

The business maintains the asset and is responsible for the administration 

The lender maintains the asset and is responsible for the administration 

The lease is based on the GST-free value of the truck. Claim GST on repayments 

Claim GST on the rental payments throughout the lease term 

Tax-deductible repayments 

Tax-deductible payments 

Interest is tax-deductible 

Interest is tax-deductible 

Own the asset or trade in for a new truck 

Hand the asset back or make an offer to purchase 

Residual gets fixed as per ATO guidelines – business carries the resale/residual risk 

No residual amount and the lender carries all the resale risk 


Chattel Mortgage

Chattel mortgage truck finance is an excellent option if you'd prefer to own your vehicle from the start of your agreement. The lender forwards funds to the vehicle vendor, and there's a mortgage on your truck until you repay the loan. That keeps the interest rate lower, and you can claim depreciation during the finance term. Chattel mortgages work well for many haulage companies, logistics businesses, and even farmers or construction firms that need to run relatively expensive heavy vehicles for more extended periods. Residuals aren't ATO-set, so can be adjusted to match cash flow projections. 


While a chattel mortgage is a more traditional secured truck finance option, leasing means the lender retains ownership of the asset until the term ends. That makes accounting for a lease different. Rather than claiming depreciation and GST on the purchase price, lease payments become a cost of doing business and are therefore tax-deductible. Perhaps the least flexible aspect of a lease is down to the fact the lender owns the asset. That means the residual isn't adjustable – so your business wouldn't be able to tailor repayments in the same way you could if you were using a chattel mortgage. 

Chattel Mortgage 


Truck Lease  

Terms run between one and seven years 

Terms run between one and five years 

You own the asset during the finance term 

The lender owns the asset during the term 

Interest on all the repayments is tax-deductible 

All lease payments are fully tax-deductible 

You can adjust the residual to make repayments more manageable 

Any residual gets set according to ATO guidelines and can't be adjusted 

Your business finances the purchase price plus GST 

The lease gets based on the ex-GST value of the truck 

Choose to use a deposit or borrow 100% 

You can't use a deposit 

There is no further GST to pay – either on repayments or the residual 

You pay GST on the repayments and any residual amount 

You claim depreciation during and after the finance term 

The lender claims depreciation during the lease agreement 

Your business claims 100% of the purchase price GST when you file your next BAS 

Your business claims GST on repayments back throughout the term 


Your car loan questions answered

Answers to the questions about truck finance Perth customers most frequently ask

Can I apply for a loan if I am just starting a business?

You can. In the case of a new business, Savvy’s expert commercial finance consultants can advise on the best option. It could be that a bad credit truck lender will work best – as having a lack of credit history is similar to having a lower credit score. 

Can I get finance to buy a used truck?

You can use most truck finance options to buy either new or second-hand vehicles, but all lenders have upper limits which apply to the truck’s age at the end of the finance term. 

What’s a low doc truck loan?

A low doc truck finance option might be a solution for you if you need to upgrade or increase your fleet before your latest financial statement or tax return has been prepared. It works by using alternative paperwork and evidence – and some lenders insist on additional conditions or request personal guarantees before approval. 

How can I make a balloon payment work for my business?

Chattel mortgage balloon payments can be adjusted up or down to decrease or increase the monthly cost of repayments, respectively. Most lenders allow for a considerable amount of play in the residual, so many businesses use it to tailor repayments to their cash flow.

What’s the difference between a chattel mortgage and a hire purchase?

A chattel mortgage gives you immediate ownership of a truck – albeit with a mortgage on it. With hire purchase, ownership is the result of paying down 100% of the finance cost. With the former, you account for the asset, with the latter, you account for operating capital.  

How does bad credit truck finance work?

If your business credit rating is less than ideal, Savvy partners with a range of lenders who will consider an application for bad credit truck finance. Interest rates for higher-risk borrowers tend to be slightly higher, but one of our expert commercial finance brokers will work with you to find a cost-effective solution. 

How does my business benefit from using a broker like Savvy?

Brokers benefit borrowers in two primary ways. Firstly, they remove a lot of the time-consuming aspects of applying for finance – like research, liaising and dealing with the lender, and understanding some of the complexities and tax implications of different products. Secondly, brokers serve to drive down the cost of borrowing because they assemble a large panel of partner lenders and force them to compete for business.  

Helpful information on car loans

Read some of the helpful information on car loans to help you make a right decision

Buying New or Used – What’s the best for you?

Buying new is more expensive, buying used is cheaper. But is it so cut and dry? Often buying new means massive (and instant) depreciation. Buying used may only drive you so far until you need repairs and replacement parts. What is best for your situation? If you are buying new and you’re planning for a family, buying something larger may suit you well for five or even ten years. A comparable used car may have a much shorter lifespan.

When Zero doesn’t equal “nothing” – 0% loans

Chances are you’ve seen car dealers offer “zero percent” loans on TV or radio. These may sound enticing, but are not all they’re cracked up to be. Dealers offering “zero” percent loans may add hidden fees, penalties and force you to buy older models at the retail price. That might mean paying more for last year’s model. Buying a retail car loan from a reputable broker or lender while negotiating a better price is a better option that will save you money in the long run.

Car loan repayments and your budget

Buying a car with finance means monthly repayments. It makes financial sense to budget for your repayments so you never run into trouble. But does it give you the full picture of how much you’ll be paying? Budgeting for repayments is a good first step, but you must also consider consumables and other expenses. Insurance, fuel, servicing and incidentals such as cleaning may play into your bottom line.

Buying private vs dealer purchase – what’s best?

In the car buying world the age-old debate of buying private and buying from a dealer rages on. What is best? It depends on your objectives. If you want to save money and don’t mind the inconvenience of travel, no-shows and checking documents and VINs online, buying private is the way to go. Dealer sales are almost always more expensive, but you get warranties, protection under consumer law and after-sales support. What is more important? Price, convenience or added safety?