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Truck Finance · Chattel Mortgage

Truck chattel mortgage

Fund truck 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

Truck finance structured as chattel mortgage means you own it from day one, with GST on the asset claimable upfront. Truck finance in New Zealand funds light, medium and heavy commercial trucks for transport, logistics, civil, construction and freight businesses. Most NZ truck finance is structured as hire purchase or chattel mortgage so the business owns the truck at the end.

Is chattel mortgage right for truck?

If you are GST registered, a chattel mortgage lets you claim the GST on the vehicle upfront and take ownership from day one — useful when the cash flow from that GST refund matters to the business.

About truck finance

Truck finance in New Zealand funds light, medium and heavy commercial trucks for transport, logistics, civil, construction and freight businesses. Most NZ truck finance is structured as hire purchase or chattel mortgage so the business owns the truck at the end. Indicative rates start from around 7.6% p.a. for prime borrowers on new trucks from a recognised dealer, with up to 100% finance available and conditional approval often inside 1–2 business days. Used trucks are funded across the major NZ asset-finance lenders, typically up to 8–10 years of age at end of term.

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

Truck finance at a glance

Indicative rate
From ~7.6% p.a. (new, prime borrower) — subject to credit
Typical term
36–60 months (light/medium); up to 72 months on prime movers
Deposit / LVR
Up to 100% on new trucks from a recognised dealer; 80–90% on used
Lenders
UDC Finance, Heartland Bank, BNZ Asset Finance

What you can fund

Heavy trucks (8x4, 6x4, 6x2 rigid)Prime movers and tractor unitsLight and medium trucksCurtain-siders, flat-decks, tippers, transportersRefrigerated trucks and reefer unitsTrailers, semi-trailers, dollies

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 truck 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 truck 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.