Finance the Ride / Business finance
How to Finance a Vacuum Excavation Truck in Australia
Finance options for hydro-vac and vacuum excavation trucks, what lenders check on specialised trucks, and new versus used considerations.
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Short answer: Vacuum excavation (hydro-vac) trucks are usually financed as business equipment, most often through a chattel mortgage or a finance lease. Because they're specialised and expensive, lenders look closely at your experience, your work pipeline, the truck's age and your deposit. Expect more questions than you'd get on a ute.
Why lenders treat these trucks differently
A vac truck is really two assets in one: a heavy truck chassis and a specialised excavation body with tanks, pumps, a blower and a boom. The chassis has a broad resale market. The body is worth a lot to the right buyer and much less to everyone else. Lenders take that into account. On older or imported units they may ask for a larger deposit, a shorter term or an independent valuation.
New units commonly cost well into six figures. Check the whole cost, not just the purchase price: registration and heavy-vehicle charges, stamp duty (which varies by state), insurance, operator training, servicing, and waste disposal fees.
Common finance structures
| Structure | Who owns it | Worth knowing |
|---|---|---|
| Chattel mortgage | Your business, with the lender holding security | You may be able to claim depreciation and interest, and GST credits if registered. A balloon can lower repayments. |
| Finance lease | The lender, until any residual is paid | Lease payments are generally deductible. A residual is due at the end. |
| Rental or dry hire | The hire company | No long-term commitment, useful to test demand. Usually the most expensive way over time. |
Low doc versions of these structures exist for established ABN holders who don't have up-to-date financials. They often come with tighter limits on loan size and truck age. Your accountant should confirm the tax treatment for your business. Our chattel mortgage guide explains the basics.
What lenders typically ask about
- Trading history and experience. How long you've held your ABN and how long you've worked in civil, utilities or excavation.
- Work pipeline. Contracts, panel arrangements or a history of regular work from councils, utilities or head contractors.
- Financials. Tax returns, BAS and bank statements for full doc, or alternative evidence for low doc.
- The asset. Make, model, year, hours, body manufacturer, invoice and, for used units, service records.
- Security position. Property ownership and existing debts, including other equipment finance.
New or used?
A new unit comes with warranty and predictable running costs, and lenders usually allow longer terms on it. A used unit costs less upfront, but check the body and pumps carefully, get a PPSR search to confirm there's no money owing on it, and allow for repairs. Private and auction purchases can be financed, but lenders may ask for an inspection or valuation first.
For registration, mass limits and roadworthiness, check the National Heavy Vehicle Regulator and your state transport authority. The rules differ in WA and the NT.
Looking at a vac truck for your business? Tell us about your situation in about 60 seconds and a licensed broker will call you. No credit check to enquire.
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General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
About this guide. Written by the Finance the Ride team and last updated . It's general information for Australian borrowers, not financial advice, and doesn't take your circumstances into account. Finance the Ride is a referral service: we don't lend money or hold an Australian Credit Licence. About us