Fleet Finance

Financing a fleet of commercial vehicles is one of the biggest decisions a growing business makes.

Whether you are adding utes for a new crew, replacing vans across your delivery routes, or building a mixed fleet from scratch, the right finance structure can save your business thousands over the life of each vehicle.

Sierra Finance compares fleet finance options across 50+ lenders to find the structure, rate, and terms that fit your business and your cash flow.

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How Fleet Finance Works

Most fleet vehicles are financed through a chattel mortgage or finance lease. The right structure depends on your tax position, how you plan to use the vehicles, and how often you intend to turn them over.

A chattel mortgage is the most popular structure for Australian SMEs because you claim the GST on the purchase price upfront and depreciate each vehicle over its useful life. You own the vehicle from day one, which suits businesses that want full control of their fleet.

A finance lease works for businesses that prefer to keep assets off the balance sheet or want the flexibility to hand vehicles back at the end of term. The lender owns the vehicle during the lease period, and you have the option to purchase, refinance, or return it when the term ends.

For businesses that regularly replace vehicles, setting a balloon or residual value on each asset keeps repayments manageable during the term. When the vehicle reaches the end of its cycle, you sell or trade it, clear the residual, and finance the replacement. Some lenders also offer pre-approved fleet facilities so you can add or swap vehicles without going through full credit approval every time.

Fleet finance terms typically run 3 to 5 years, aligned with the vehicle's working life and your planned replacement schedule.

What You Can Finance with Fleet Finance

Fleet finance covers any commercial vehicles your business needs to operate. The most common fleet vehicles we arrange finance for include utes such as the Toyota HiLux, Ford Ranger, Isuzu D-Max, and Mitsubishi Triton. Vans including the Toyota HiAce, Hyundai Staria Load, and Ford Transit are equally common. Light trucks, SUVs, and sedans for sales or management teams are also eligible.

New and used vehicles can both be financed. Most lenders accept used vehicles up to 12 to 15 years old at the end of the loan term, though rates and terms are more competitive on newer stock. Dealer purchases, private sales, and auction buys are all covered.

Mixed fleets are standard. A construction company might finance five utes, two vans, and a light truck under the same arrangement. A courier business might run a fleet of ten vans alongside a couple of sedans. The vehicles just need to be used for business purposes under the same ABN.

Finance amounts typically range from $20,000 per vehicle for a used ute through to $150,000 or more for light trucks and specialty commercial vehicles. Total fleet exposure depends on the strength of your business and each lender's appetite, which is where having a broker compare across 50+ lenders makes the difference.

Who Fleet Finance Is For

Fleet finance is built for businesses that rely on more than one or two vehicles to operate. The industries that most commonly use fleet finance include construction and trades, where crews of utes and vans move between job sites daily. Courier and delivery services that scale vehicle numbers alongside contracts. Property maintenance and cleaning companies with teams covering regular routes. Sales teams that need vehicles across a territory. Transport and logistics operators adding to or replacing an existing fleet.

Most lenders want to see an ABN registered for at least 12 months with a clean credit history. For larger fleet facilities, full financials including business tax returns, BAS statements, and an asset and liability statement are usually required.

Businesses with newer ABNs can access fleet finance through low doc lenders, though the rates and terms reflect the higher risk. If you are growing from one or two vehicles into a structured fleet, that transition is exactly where a broker adds the most value. The right lender for a two vehicle file is often different from the right lender for a ten vehicle facility, and a broker matches the finance to where your business is now, not just where you want it to be.

Why Use a Broker for Fleet Finance

If you search for "fleet finance" online, most of the results are fleet management companies. Providers like Fleetcare, SG Fleet, and Toyota Fleet Management bundle the vehicle with fuel cards, maintenance, telematics, registration, and insurance into a single operating lease. That model works for large corporates with dedicated fleet managers, but it is expensive for SMEs and small operators. You pay for services you may not need, and you never own the vehicles.

A broker arranges the finance only. You own the vehicle through a chattel mortgage or finance lease, claim the GST and depreciation, and handle your own servicing and insurance. The total cost of ownership is significantly lower because you are not paying for a fleet management layer your business does not require.

The other advantage is lender choice. A fleet management company or your bank offers one set of products and rates. A broker compares across 50+ lenders. One lender might offer the best rate on new utes. Another might be more flexible with a mixed fleet of older vehicles. A third might have a higher total exposure limit that suits a growing fleet of ten or more assets. A broker structures the fleet across the right lenders for each vehicle type, age, and dollar amount, instead of forcing every vehicle through a single provider.

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Compare fleet finance options across 50+ lenders with no obligation. Find the right structure and rate for your fleet.

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Getting Fleet Finance

Step 1: Tell Us About Your Fleet

Share the details of the vehicles you need to finance, including how many, what types, whether they are new or used, and your preferred structure. We will also discuss your replacement cycle, budget, and any lender preferences to make sure the finance fits how your business actually operates.

Step 2: We Compare Across 50+ Lenders

We match your fleet to the right lenders based on rates, terms, total exposure limits, and approval speed. For mixed fleets, we may split the facility across lenders to get the best outcome on each vehicle type and age bracket.

Step 3: Approval and Settlement

Once you choose a lender, we handle the paperwork and manage the process through to settlement. Most fleet finance approvals come through within 24 to 48 hours for straightforward files. Your vehicles get on the road, and we stay available when it is time to add the next one or start the replacement cycle.

Frequently Asked Questions

What is fleet finance? +

Fleet finance is a funding arrangement that helps businesses purchase or lease multiple commercial vehicles. Instead of paying the full purchase price upfront for each vehicle, you spread the cost over a set term while the vehicles earn for your business. Common structures include chattel mortgage, finance lease, and hire purchase. Fleet finance is available for utes, vans, trucks, SUVs, and sedans used for business purposes.

How many vehicles do I need to qualify for fleet finance? +

Most lenders treat two or more vehicles financed under the same ABN as fleet territory. In practice, the fleet conversation around replacement cycles, consolidated facilities, and fleet policy usually becomes relevant at three to five vehicles. Even if you are starting with just two, a broker can structure the finance with future fleet growth in mind.

What types of vehicles can I finance as a fleet? +

Any commercial vehicle your business uses is eligible. The most common fleet vehicles are utes, vans, and light trucks, but sedans, SUVs, and specialty commercial vehicles are also covered. Mixed fleets combining different vehicle types under one arrangement are standard.

What is the difference between fleet finance and a single vehicle loan? +

A single vehicle loan covers one vehicle with a standalone application and approval. Fleet finance covers multiple vehicles, often under a consolidated facility with pre-approved limits. This simplifies administration, can unlock better rates across multiple assets, and allows you to add or replace vehicles without starting the approval process from scratch each time.

What fleet finance structures are available? +

The most common structures are chattel mortgage, where you own the vehicle from day one and claim GST and depreciation. Finance lease, where the lender owns the vehicle during the term and you have the option to purchase at the end. And hire purchase, which works similarly to a chattel mortgage with structured instalments. Operating leases are offered by fleet management companies but are not typically arranged through a broker.

Can I finance a mix of new and used vehicles in the same fleet? +

Yes. Lenders assess each vehicle individually within the fleet, so you can finance a combination of new and used vehicles under the same facility. Used vehicle age limits vary by lender, but most accept vehicles that will be no older than 12 to 15 years at the end of the loan term.

What deposit is required for fleet finance? +

Most fleet finance arrangements can be structured with no deposit. Putting equity into the transaction will reduce your repayments and may improve the rate offered. For used or older vehicles, some lenders may request a 10 to 20% deposit depending on the asset's age and condition.

How long are fleet finance terms? +

Fleet finance terms typically run 3 to 5 years, depending on the vehicle type and your planned replacement cycle. Shorter terms suit businesses that turn over vehicles frequently, while longer terms keep repayments lower for businesses that run vehicles closer to end of life.

What is a balloon payment on fleet finance? +

A balloon or residual value is a lump sum payable at the end of the finance term. Setting a balloon reduces your monthly repayments during the term. When the term ends, you can pay the balloon and keep the vehicle, refinance it, or sell or trade the vehicle and use the proceeds to clear the balance. Balloons are commonly used in fleet finance to align repayments with planned vehicle replacement cycles.

Can I get fleet finance with a new ABN? +

Yes, though your options will be more limited. Most mainstream lenders require at least 12 months of ABN registration and trading history. Low doc lenders can approve fleet finance for newer businesses based on BAS statements, bank statements, or an accountant's letter instead of full financials. Rates will be higher to reflect the risk, but the finance is accessible.

What documents do I need to apply for fleet finance? +

For a standard application you will need your driver's licence, ABN and business registration details, two years of business tax returns or recent BAS and bank statements for low doc applications, an asset and liability statement, and the details of each vehicle you want to finance including make, model, year, purchase price, and whether it is a dealer or private sale.

How quickly can fleet finance be approved? +

Most straightforward fleet finance applications are approved within 24 to 48 hours once documents are submitted. Larger fleet facilities, newer ABNs, or non-standard credit situations may take a few extra days. Pre-approved fleet facilities speed up future additions because the business has already been assessed.

Is fleet finance tax deductible? +

The tax treatment depends on the structure. With a chattel mortgage, you can claim the GST on the purchase price, depreciation on each vehicle, and interest on the loan as business deductions. With a finance lease, the lease payments are generally tax deductible as a business expense. Your accountant is the right person to advise on the best structure for your specific tax position.

What is the difference between fleet finance and fleet management? +

Fleet finance is the funding arrangement to purchase or lease the vehicles. Fleet management is a bundled service, usually structured as an operating lease, that includes the vehicle along with fuel cards, maintenance, insurance, registration, and telematics. Fleet management companies offer this bundled model and it suits large corporates with big fleets. For SMEs, using a broker to arrange the finance only means you own the vehicles and manage running costs yourself at a significantly lower total cost.

Can I add vehicles to my fleet finance facility later? +

Yes. Many fleet finance arrangements are structured to allow additions over time. Some lenders offer revolving or pre-approved facilities where you can add vehicles without a full reassessment for each one. Your broker can structure the initial facility with future growth in mind so expanding the fleet is straightforward as your business grows.

Ready to Finance Your Fleet?

Call 0416 960 969 or fill out the form below for a fleet finance quote. We respond the same business day.