If you're a tradie, your ute is more than just transport — it's your mobile workshop, your billboard, and often your biggest work expense. Getting the finance right can make a real difference to your bottom line.
Here's what you need to know about financing a work ute.
Finance Options for Tradies
When you're buying a ute for work, you have more options than a standard car loan:
1. Chattel Mortgage
A chattel mortgage is a popular choice for ABN holders. You own the ute from day one, with the lender taking a "mortgage" over it as security.
Pros:
- Claim GST on the purchase price upfront
- Claim interest and depreciation as tax deductions
- You own the vehicle immediately
- Flexible balloon/residual options
Cons:
- Need to be registered for GST to claim GST credits
- The asset appears on your balance sheet
2. Commercial Hire Purchase (CHP)
Similar to a chattel mortgage, but structured slightly differently. You hire the vehicle with the intention to purchase at the end.
Pros:
- Claim GST upfront (if GST registered)
- Interest and depreciation are tax-deductible
- Flexible terms and balloon options
Cons:
- Technically don't own until final payment
- On your balance sheet
3. Finance Lease
You lease the ute for a set term, with options at the end (return, buy, or re-lease).
Pros:
- Entire lease payment can be tax-deductible
- Off-balance-sheet financing
- Good for businesses that like to upgrade regularly
Cons:
- Can't claim GST upfront in most cases
- You don't own the vehicle during the lease
- May have kilometre restrictions
4. Standard Car Loan
A regular secured car loan, like anyone else would get.
Pros:
- Simple and straightforward
- Works for sole traders not registered for GST
- No restrictions on use
Cons:
- Can only claim the business-use portion of interest
- No upfront GST credit
Which Option is Best?
The right choice depends on your business structure, GST registration, and how you want to treat the asset for tax purposes. Talk to your accountant about what works best for your situation — the tax implications can be significant.
What Ute Should You Buy?
The most popular work utes in Australia:
Best Sellers
- Toyota HiLux — the best-selling vehicle in Australia, legendary reliability
- Ford Ranger — close second, great towing and features
- Isuzu D-Max — excellent value, strong workhorse
- Mitsubishi Triton — affordable, solid performer
- Mazda BT-50 — shares platform with Isuzu, refined driving
New vs Used
For a work ute, consider:
- New: Full warranty, latest safety features, customise to your needs
- Used: Lower purchase price, let someone else take the depreciation hit
- Demo/runout: Can be the sweet spot — near-new with decent savings
Tips for Tradies Financing a Ute
- Talk to your accountant first — structure the finance in the most tax-effective way
- Get pre-approved — know your budget before you negotiate
- Consider the total cost — purchase price + finance cost + running costs
- Don't overcommit — work can be up and down, leave room in your budget
- Factor in fit-out costs — toolboxes, racks, drawers add up
- Think about resale — popular models in white/silver hold value best
What Documents Do You Need?
As a self-employed tradie, you'll typically need:
- Driver's licence
- ABN registration details
- Last 2 years of tax returns (personal and/or business)
- BAS statements (last 4 quarters)
- Business bank statements (3-6 months)
If you've been trading for less than 2 years, options are more limited but not impossible — especially with strong bank statements showing good income.
Instant Asset Write-Off
Check current tax rules around the instant asset write-off. When available, it allows businesses to immediately deduct the cost of eligible assets (like utes) rather than depreciating them over time. The rules change frequently, so check with your accountant about what applies now.
The Bottom Line
Your work ute is a major business expense — getting the finance right can save you thousands in tax and interest. The key is matching the finance structure to your business situation.
Need a work ute? Get a quote and we'll help you find the right finance option — whether that's a chattel mortgage, hire purchase, or standard loan.
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