Short answer: If you work on an ABN and the ute is mainly for work, a chattel mortgage in your business name is the most common setup. It may let you claim interest, depreciation and the GST credit. PAYG tradies usually take a standard secured car loan. Either way, lenders look at your income, your credit history and the ute itself, including any fit-out.
ABN or personal loan?
| ABN (business) finance | Personal car loan | |
|---|---|---|
| Who it suits | Sole traders, partnerships and companies using the ute mainly for work | Employed tradies and apprentices, or mainly private use |
| Typical structure | Chattel mortgage, sometimes a lease | Secured car loan |
| Income evidence | BAS, business bank statements, tax returns or an accountant's letter | Payslips and bank statements |
| Tax and GST | Business-use share may be claimable. The GST credit is usually claimable if you're registered | Generally not claimable |
The one-tonne payload question
The ATO car limit, which caps the cost you can depreciate, applies to "cars". A vehicle designed to carry a load of one tonne or more isn't a car under those rules. Some utes, especially single cabs and cab chassis with trays, are rated at or above one tonne of payload. Many dual cabs with a tub are not. Check the manufacturer's payload figure and confirm the tax treatment with your accountant or the ATO. Don't assume every ute qualifies.
Accessories and fit-outs
- Trays, canopies, toolboxes, racks, drawers and tow bars can often be included if they're on the dealer or fitter's tax invoice.
- Lenders may cap how much of the loan can go on accessories, because they add little to resale value.
- GVM upgrades and heavy modifications need proper certification. Tell your insurer too, or a claim could be affected.
New vs used
Used utes are popular with tradies, but work utes can be hard-worn. Check the service history, look for towing wear and run a PPSR search on private sales. Some lenders limit how old the ute can be at the end of the loan. New utes cost more upfront but are simpler to finance and come with warranty.
What lenders usually ask for
- ABN and GST registration details, or payslips if you're PAYG
- Recent BAS and bank statements. Many low doc lenders want an ABN of at least 1 to 2 years
- ID and details of existing debts, including other vehicle or equipment loans
- The ute's details: dealer invoice or private sale details, VIN, year and kilometres
Balloons and cash flow
A balloon can lower repayments while work is building. But a flogged work ute may be worth less than the balloon at the end. Set it at a level you can realistically pay or refinance.
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Related guides
- Low doc loans for cars, utes and vans
- Chattel mortgages on an ABN
- Tax deductions for business vehicle loans
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.
