What to Know Before Financing a Work Vehicle

Whether you're a sole trader, small business owner, or looking to expand your operations, financing a work vehicle is a big step - and a smart one when done right. The right commercial vehicle can be the backbone of your business, helping you move faster, deliver more, and maintain a professional image with your clients. But before you hit the road, it's important to understand your options and responsibilities.

Here's everything you need to know before financing a work vehicle in Australia.

Start with the Right Vehicle for the Job

Before thinking about finance, think about the vehicle itself. Consider how you'll use it day-to-day. Do you need space for tools, a refrigeration setup, extra seating, or towing capacity?

Common commercial vehicles include:

• Utes for tradespeople needing open trays and off-road capability
• Vans for couriers, mobile services, or deliveries
• Small trucks for heavier loads or business growth
• Cars for business reps, consultants, or shared company use
• Tractors or specialised vehicles for agricultural or site-based work

Choosing a vehicle that suits your current needs - as well as future growth - can help you get better value over time.

Understand the Different Finance Options

Commercial vehicle finance can look different depending on your structure and goals. It's important to choose the right type of loan for your business.

At AFS, we offer tailored loan solutions, including:

• Chattel Mortgages - A popular option where the vehicle is owned by the business from day one. Great for claiming GST and tax deductions (speak with your accountant).
• Commercial Vehicle Loans - Structured to suit your business's cash flow with fixed repayments.
• Balloon Payment Loans - Lower monthly repayments with a larger final amount due at the end of the term (you can refinance or pay it outright).

Each option has it's own pros and cons, so it's worth having a chat with a finance professional to make the best choice for your setup.

Check the Loan Eligibility Requirements

At AFS, we understand that not every business fits into a neat box - and we don't expect it to. We assess each application individually and offer finance to a wide range of business types, including:

• Sole traders
• Small business owners
• Start-ups with strong income
• ABN holders with a short trading history

While eligibility may vary, having a valid ABN, proof of income (like recent bank statements), and a good repayment history will all help strengthen your application.

Consider Whether You're Buying New or Used

Both options have their benefits.

• New Vehicles offer the latest features, better warranties, and lower running costs.
• Used Vehicles are more affordable and may suit businesses looking to avoid large upfront expenses.

Unlike some lenders, AFS doesn't restrict vehicle age, meaning you can finance older, well-maintained vehicles that still serve your business needs.

Think About Insurance and Running Costs

Financing a vehicle is just one part of the picture. It's essential to plan for ongoing costs such as:

• Insurance (comprehensive cover may be required under your loan term)
• Registration and servicing
• Fuel and tyres
• Modifications or signage

These costs affect your budget, so it's smart to factor them in early.

Documentation You May Need

To make the application process as smooth as possible, have the following documents ready:

• ABN and business details
• Proof of income (bank statements, BAS, or accountant's letter)
• Personal ID
• Asset details (if you've already found the vehicle)

The more information you can provide, the quicker we can process your application and get you moving.

Your Credit Profile Matters - but It's Not Everything

We know that business owners can face unique challenges - especially in the early years. That's why AFS looks beyond just your credit score. We consider the overall picture of your business, your ability to repay the loan, and the asset you're financing.

Even if you've had small defaults or limited credit history, we may still be able to help.

Pre-Approval Can Give You an Advantage

If you haven't found the vehicle yet, applying for pre-approval with AFS is a great first step. It gives you a clear understanding of your borrowing power and puts you in a stronger position to negotiate when you're ready to buy.

Pre-approval also saves you time and avoids delays once you find the right vehicle.

Why Choose AFS for Commercial Vehicle Finance?

We've been helping business owners across Australia since 1988, and we understand that a vehicle is more than a set of wheels - it's a key part of your operation.

What sets us apart:

• No asset age restrictions
• Fast, flexible approvals
• Loans tailored for real businesses - not bank boxes
• A team that genuinely cares about your success

We're here to help motoring enthusiasts and hard-working business owners get the right finance without the runaround.

Final Thoughts

Financing a work vehicle is a big decision, but with the right guidance, it can be a smart move for your business growth. Think carefully about the vehicle, your repayment capacity, and how the loan structure fits into your long-term plans.

At AFS, we're ready to work with you to find the right commercial vehicle finance - so you can focus on running your business, not chasing finance.