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Forklift Finance · Chattel Mortgage

Forklift chattel mortgage

Fund forklift on chattel mortgage and own it from day one, with GST on the asset claimable upfront. Indicative rates From ~7.6% p.a. (new, prime borrower) — subject to credit.

Quick answer

Forklift finance structured as chattel mortgage means you own it from day one, with GST on the asset claimable upfront. Forklift finance funds counterbalance forklifts, reach trucks, walkie stackers, pallet jacks, order pickers and telehandlers for NZ warehousing, logistics, manufacturing and yard operations. Most NZ forklift finance is structured as hire purchase, chattel mortgage or operating lease (commonly bundled with servicing for fleets).

Is chattel mortgage right for forklift?

A chattel mortgage gives day-one ownership and an upfront GST claim on the plant — common for civil and construction businesses buying excavators, loaders and forklifts.

About forklift finance

Forklift finance funds counterbalance forklifts, reach trucks, walkie stackers, pallet jacks, order pickers and telehandlers for NZ warehousing, logistics, manufacturing and yard operations. Most NZ forklift finance is structured as hire purchase, chattel mortgage or operating lease (commonly bundled with servicing for fleets). Indicative rates from ~7.6% p.a. for new forklifts from a recognised dealer, with terms up to 84 months. Used forklifts including ex-rental and auction units are funded by specialist NZ non-bank lenders.

Why chattel mortgage

  • ✓You own the asset from day one — it sits on your balance sheet immediately
  • ✓Claim full GST on the asset cost in the period of purchase (subject to GST basis)
  • ✓Claim depreciation and the interest portion of repayments
  • ✓Fixed rate, fixed payments — easy to budget
  • ✓Lender registers PPSR security; otherwise unencumbered by lender ownership

Trade-offs to weigh

  • –You bear depreciation risk over the term
  • –Sale before end-of-term requires paying out the loan first
  • –Asset and liability both on balance sheet — increases gearing optics

Forklift finance at a glance

Indicative rate
From ~7.6% p.a. (new, prime borrower) — subject to credit
Typical term
48–84 months
Deposit / LVR
Up to 100% on new from a recognised dealer; 80–90% on used
Lenders
UDC Finance, Heartland Bank, Toyota Financial Services

What you can fund

LPG, diesel and electric counterbalance forkliftsReach trucksWalkie stackers and pallet jacksOrder pickersTelehandlers (rough-terrain forklifts)Container handlers and heavy industrial lifts

How chattel mortgage is treated

Ownership from day one You (business)
Who claims depreciation You
GST treatment Claim full GST on asset cost upfront (cash/invoice basis)
Typical term 24–60 months

See the full breakdown in the chattel mortgage guide, compare all four structures on the comparison page, or read more on forklift finance.

Rates, terms and LVR are indicative market ranges for guidance only — not a quote, not financial or tax advice, and subject to lender credit approval. Confirm tax and accounting treatment with your accountant.

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Frequently asked questions

Yes. Chattel Mortgage is a common way to fund forklift for New Zealand businesses — it means you own it from day one, with GST on the asset claimable upfront. A chattel mortgage is a finance structure where you (the business) take legal ownership of the asset on day one, and the lender registers a security interest over it on the Personal Property Securities Register (PPSR). You pay regular instalments over the agreed term, claim depreciation and the interest portion of each payment, and you can claim the full GST on the asset cost upfront in your next return. All applications are subject to lender credit approval.