Truck finance costs come down to four numbers: the interest rate, the loan term, the deposit or trade-in, and any balloon (residual) at the end. Get those right and a truck can pay for itself out of the work it wins. Get them wrong and you either overpay in interest or get caught by a balloon you cannot clear. This guide shows what each part actually costs in 2026, with worked repayment examples you can sanity-check against a quote.
Every figure below is a worked example for illustration — not a quote. Your rate depends on the asset, your ABN and trading history, the lender and the structure. Run your own numbers on the truck finance calculator, then talk to a broker.
What drives the cost of truck finance
- Truck age and type. Newer prime movers and rigids attract the sharpest rates; older trucks and specialised bodies (tippers, cranes, reefers) sit higher because the lender security is worth less at resale.
- Business profile. An established ABN with clean history and a deposit gets a better rate than a new business or a low-doc application.
- Structure. A chattel mortgage is the most common structure for business trucks; the GST on the purchase is generally claimable up-front, and interest and depreciation are deductible for the business-use portion.
- Deposit / trade-in. More equity in means less financed, which lowers both the repayment and the total interest.
- Balloon / residual. A balloon lowers the monthly repayment but you still owe that lump sum at the end, plus you pay interest on it the whole term.
Typical interest rate bands (illustrative, 2026)
| Scenario | Indicative rate band* |
|---|---|
| New truck, established ABN, full-doc, deposit | Lowest band |
| Used truck (3–7 yrs), established ABN | Mid band |
| Older / specialised truck, or newer ABN | Higher band |
| Low-doc / adverse history | Highest band |
*Bands are relative, not quoted numbers — rates move with the cash rate and the lender panel. A broker checks the lender panel to find the sharpest structure your profile qualifies for.
Worked repayment examples
Illustrative only. Assumes a chattel mortgage, no fees shown, principal-and-interest over the term. Use these to understand the shape of the cost, not as a quote.
| Amount financed | Term | Balloon | Approx. monthly repayment | What to notice |
|---|---|---|---|---|
| $80,000 | 5 yrs | $0 | Mid-range monthly | Highest monthly, lowest total interest |
| $80,000 | 5 yrs | 30% | Lower monthly | Smaller monthly, but a large lump sum due at year 5 |
| $150,000 | 5 yrs | $0 | Higher monthly | Bigger truck, P&I clears the debt fully |
| $150,000 | 7 yrs | 25% | Lower monthly | Longer term + balloon eases cash flow, more interest overall |
The truck finance calculator turns your real amount, term and balloon into weekly, fortnightly and monthly figures, plus a total-interest estimate.
The fees to ask about
- Establishment / documentation fee — one-off, set-up.
- Monthly account fee — small, recurring.
- Broker / origination fee — disclosed up-front if it applies.
- Balloon refinance — if you cannot clear the balloon, refinancing it costs more interest.
Always ask for the total cost of finance over the term, not just the monthly figure — two loans with the same monthly repayment can differ by thousands once term and balloon are included.
GST, deductions and the balloon
Under a chattel mortgage, a GST-registered business can generally claim the GST on the truck purchase price in the next BAS, and claim interest and depreciation on the business-use share. The balloon is your money owed, not a discount — plan for how you will clear it (cash, trade-up, or refinance) before you sign. This is general information, not tax advice; confirm with your accountant. See how a chattel mortgage works for the full mechanics.
How to lower what you pay
Bring a deposit or trade-in, keep the term as short as cash flow allows, be cautious with balloons, and get your ABN/BAS paperwork ready so you qualify full-doc rather than low-doc. If you run under an ABN, an ABN car and truck finance structure may suit. Buying used? Used truck finance has its own rate considerations.
Want the sharpest structure for your truck? Apply now or speak to a Tradie Finance broker — we compare the lender panel so you do not overpay.
Frequently asked questions
How much does truck finance cost per month?
It depends on the amount, rate, term and balloon. An $80,000 truck over 5 years with no balloon has a much higher monthly repayment than the same truck with a 30% balloon — but the balloon version costs more overall and leaves a lump sum due at the end. Use the truck finance calculator for your figures.
What interest rate will I get on a truck loan?
Rates vary by truck age, your ABN and trading history, deposit and lender. Newer trucks with an established ABN attract the lowest bands; older or specialised trucks and low-doc applications sit higher.
Is a balloon payment cheaper?
A balloon lowers the monthly repayment but not the total cost — you pay interest on the balloon for the whole term and still owe the lump sum at the end. Plan how you will clear it before signing.
Can I claim truck finance on tax?
Under a chattel mortgage, a GST-registered business can generally claim the GST up-front and deduct interest and depreciation on the business-use portion. Confirm with your accountant — this is general information only.
What fees come with truck finance?
Typically an establishment/documentation fee, a small monthly account fee, and any disclosed broker fee. Ask for the total cost of finance over the term, not just the monthly repayment.
This article is general information only and does not constitute credit or financial advice. Rates and repayments are examples only, are not quotes, and are subject to change and to approval, lending criteria, terms, conditions and fees. Tradie Finance operates under Australian Credit Licence 506065 (Five Tees Pty Ltd).
Written and reviewed by the Finance Director at Tradie Finance.