Truck finance Sydney

Everything about truck finance Sydney customers need to learn - maximising your tax advantage and cash flow via Savvy

Truck Finance Sydney

Without trucks, Australia grinds to a halt – and without effective, timely truck finance options, your business comes to a standstill too. That’s why at Savvy, we provide a seamless start-to-finish truck finance brokerage service that delivers as quickly as your business does. From flexible lease packages to affordable, convenient chattel mortgage and hire purchase solutions – when you need to upgrade or increase your fleet, we’ll have you on the road in no time.

Savvy – Keeping Your Business Moving

Our strength lies in our people, and Savvy’s knowledgeable commercial finance consultants bring a wealth of transport industry experience to the process of finding you the ideal solution – every time. Every business is different, and that demands a versatile, varied selection of lenders and products. Whatever your financial position, however you operate, Savvy partners with a lender that can service your financing needs – and that makes for faster, more cost-effective funding.

Truck Finance Sydney: Operating Lease

Operating leases provide several benefits and work well for many specific businesses. There’s no obligation to buy or risk associated with the vehicle’s value at the end of the term when you use an operating lease. It’s signed on the basis that you return the truck when the agreement ends. For companies and owner-drivers that want to upgrade their vehicles frequently, that can be a huge advantage, but operating leases offer great flexibility too. If you do decide you want to run the truck for a longer time than the lease agreement, lenders will always be open to negotiation on a price to buy.

  • Operating terms usually last between two and five years
  • Payments are fully tax-deductible and get based on the ex-GST value of the vehicle during the lease term
  • You can negotiate to buy the truck when the lease ends
  • Fully maintained operating leases allow you to bundle running costs like registration and insurance, fuel, servicing, and maintenance into the monthly payments – and take advantage of lender-negotiated rates

Truck Finance Sydney: Finance Lease

Finance leases are an excellent way to run a truck in a straightforward tax-effective way. They differ from operating leases because you commit to meeting the residual value when the term ends. That value gets calculated on ATO-approved tables based on the length of the lease agreement. When the term finishes, you can choose to pay in cash or refinance the residual and continue using the truck, trade the vehicle in for a new one, or sell it and take care of the residual that way. You might opt for a finance lease instead of an operating version if you preferred to own the truck eventually. The ATO-set residual is known from the start of the finance term, making budgeting or forecasting simpler.

  • All repayments get classed as a cost of doing business and are tax-deductible
  • Terms from 12 months to five years
  • Lenders claim back the sales tax, so your payments get based on the GST-free cost of the truck
  • Flexible end-of-lease options

Truck Finance Sydney: Hire Purchase

If you want to own the truck when the finance term ends, another option is hire purchase. That’s a very similar structure to a finance lease except you don’t have to use a residual and can pay down the full value of the truck during the term instead. It also shares some chattel mortgage traits – in that essentially, it’s a straightforward way to pay down truck finance. However, payments are fully tax-deductible as a business expense because you don’t own the asset until the term finishes. Lenders do claim depreciation and GST on the purchase price, though, so when they pass on that saving, you get tax benefits both ways.

  • Terms from one to seven years
  • Repayments get classed as a cost of doing business for tax purposes
  • You may also benefit from the lender claiming depreciation and GST during the term

Truck Finance Sydney: Chattel Mortgage

A chattel mortgage is a commercial asset loan that provides some excellent tax benefits. You also gain from fixed, lower-interest repayments because borrowing gets secured against the truck. Terms run between twelve and eighty-four months, and you can use either or both of a deposit and residual value, tailoring repayments to your business revenue cycle. Unlike with leases, residuals for chattel mortgages can be adjusted. You’re the registered owner of the truck from day one of the term, and when the finance gets repaid in full, the lender lifts their mortgage, and you have clear title.

  • You can claim all of the GST on the purchase price back in your next BAS
  • Interest on repayments is tax-deductible
  • Sales tax gets paid at the start of the term, so there’s zero GST on the residual and repayments
  • Adjust the residual or use a deposit to tailor repayments, or do both

Truck Finance Sydney: Low Doc Truck Finance

Low doc truck finance is a facility available to businesses that wish to borrow in the absence of up-to-date financial records or tax returns. Some specialist lenders will consider alternative forms of documentation if you need to expand or upgrade vehicles during the tax year and your most recent financials don’t represent your current position.

Applying for low doc finance is relatively simple. Savvy’s expert commercial vehicle finance consultants will look at your business and goals and assess your borrowing requirements before recommending the best lenders – then they’ll guide you through the approval process. Generally, the more evidence of revenue you can supply, the lower your borrowing costs will get – lenders look at things like:

  • Your business bank account statements
  • Letters and projections from your accountant
  • Any evidence you can supply concerning future orders or business
  • In the absence of the latest copy, your previous business activity statements can be useful
  • Some lenders will require you to complete their own business income declaration form

Why Sydney Truck Finance Customers Choose Savvy

Tailormade commercial finance solutions, more lender choice and lower interest rates, faster applications and approvals

The Savvy Way to Truck Finance - How the Process Works

The simplest way to find truck finance solutions that match how you trade – professional, cost-effective, and convenient

Questions About Truck Finance Sydney Customers Ask

Application turnaround times, residuals, and buying trucks privately or from the dealer – it’s all in the FAQs

Can I finance trucks or other assets?

Absolutely. Asset loans and leases can be used to fund the purchase of heavy trucks, cars, and other vehicles, as well as machinery, tools, plant, and even computer equipment.

What’s a residual?

With a lease, you only pay down the amount the vehicle depreciates during the finance term – and the residual represents what the truck is worth when that ends usually. The residual gets set according to ATO guidelines. You either return the vehicle for the lender to sell or buy the vehicle for the residual amount. With a chattel mortgage, you can adjust the residual up or down to make your monthly repayments more manageable.

Can I finance a truck from a private seller, or does it have to be a dealership?

You can source your truck from either. However, it can take slightly longer to arrange finance for a private sale. That’s mainly due to the fact the lender needs to verify the value and condition of the vehicle you’re buying.

Why use a broker and not just the bank?

Even if you’ve got a longstanding relationship with your bank, you’ll be limited to their financial products, rates, and terms and conditions. Using a broker means accessing dozens of commercial lenders, each with their own products and servicing specific sectors. That creates more competition and often results in lower interest rates.

How long does the truck finance process take?

That can depend on your financial position, how available your paperwork is, and where you’re sourcing the truck, but the process is pretty speedy. Decisions routinely get made within a few hours, and most applications are completed within 48 hours.

My business has bad credit. Can I still apply?

Savvy partners with several commercial finance providers that will consider applications from businesses with bad credit. You’ll likely pay a slightly higher interest rate, and the loan provider may insist on a deposit. Talk with one of our expert consultants; they can assess your needs and identify a viable lender

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