Used ute prices are down 12.6% on the same period last year — and utes are falling faster than any other used vehicle category, according to CarExpert market data. For Melbourne tradies, builders, courier operators and SMEs with a work vehicle on the to-do list, the opening weeks of FY2027 are a genuine buying window. Asset prices are softer, lender appetite for business vehicle finance is strong, and a clean credit file can get a work ute or van settled in days. Here's what you need to know about financing a ute, van or light commercial in the new financial year — and how to avoid the traps that cost SMEs thousands.
Why the Ute Market Is Soft Right Now — and What That Means for Buyers
The CarExpert data tells the story clearly: used ute and SUV prices are down 12.6% year-on-year, compared to a 6.1% fall for passenger cars. Three things are driving this correction:
Fleet rotations hitting the market at scale. Corporate and government fleets that bought heavily in 2021–22 — when supply was constrained and new vehicle prices were inflated — are now cycling out. Pickles Auctions is running regular national disposal events featuring late-model Toyota HiLux, Ford Ranger, Isuzu D-MAX and HiAce vans, many with full fleet service histories and sub-100,000 km. These are well-maintained vehicles at materially lower prices than two years ago.
New competition compressing used pricing. The arrival of competitively priced utes from GWM (Cannon), LDV (T60) and JAC (T9) — starting from the high $30,000s drive-away — has applied downward pressure across the used ute board. A tradie who might have paid $55,000 for a clean used HiLux SR5 two years ago may find equivalent stock trading at $44,000–$48,000 today.
New ute demand softening. New ute segment sales are down approximately 18% year-on-year in 2026. That softness in the new market flows directly into used pricing — less competition for the same stock.
The window is real, but it won't last indefinitely. When rate cuts stimulate SME confidence and fleet replenishment begins again in earnest, used ute pricing typically tightens. The SMEs acting now are buying the same vehicles at softer prices and locking in repayments before that cycle turns.
If you want help sourcing the right vehicle before arranging finance, IFG's vehicle sourcing service connects Melbourne businesses directly with dealer and wholesale networks — including prestige European commercial vehicles — often well below advertised retail price.
What Finance Structure Is Right for a Work Ute or Van?
Most ABN-holding businesses funding a work vehicle use one of three structures: chattel mortgage, finance lease, or hire purchase. Each has different ownership mechanics, balloon/residual treatment and end-of-term obligations — and the right choice depends on your cashflow, how you use the vehicle, and what your accountant recommends on the tax side.
For a full breakdown of how the three structures compare on credit mechanics, balloon payments and ownership — read our guide: Chattel Mortgage vs Finance Lease vs Hire Purchase: Which Structure Suits Your Business?
For most tradies and SMEs, chattel mortgage is the default for a reason.
Chattel mortgage — how it works: You own the vehicle from settlement day one. The lender holds a charge over it (the "chattel") as security for the loan. You make fixed monthly repayments — typically over 3–5 years — with an optional balloon payment at the end to reduce your monthly commitment. Because ownership transfers immediately, GST and depreciation treatment may apply — speak with your accountant on the tax implications. IFG handles the credit structure and lender placement.
Finance lease and hire purchase suit different scenarios — particularly where the business doesn't want ownership risk on the asset's residual value, or where a fleet arrangement is in place. Our car and asset finance page covers these in detail, and a director can walk you through the right fit for your situation.
Can I Finance a Used Ute With a Chattel Mortgage?
Yes — and this question comes up constantly among Melbourne tradies. Many small business owners assume chattel mortgage is reserved for new vehicles. That's not the case.
Lenders will finance used vehicles, but they apply asset age criteria. The most common rule is that the vehicle must be no older than 12–15 years at the end of the loan term. A 2020 Toyota HiLux financed today on a 5-year term would be approximately 11–12 years old at term end — well within most lenders' appetite.
Key factors lenders assess for used vehicle finance:
- Vehicle age and kilometres — older, higher-km assets attract tighter loan-to-value ratios (LVRs) from most lenders, meaning a larger deposit or equity contribution may be required.
- PPSR check — lenders require a clear Personal Property Securities Register search to confirm no existing finance encumbrance or write-off history against the vehicle.
- Valuation against market — most lenders use Glass's Guide or Red Book benchmarks to confirm the purchase price is within market. Auction prices often come in favourably against these guides in the current softening market.
Whether you're buying from a Pickles Auction, a private seller, or a dealer, all three scenarios are financeable through IFG. The settlement timeline and documentation differ — an experienced broker navigates those requirements routinely, so approval and settlement move faster than if you approach lenders directly. Use our loan repayment calculator to model payments at different loan amounts, terms and balloon levels before you submit.
What Do I Need to Get Approved? Low-Doc Finance Explained
The answer depends on your business profile. There are two main lanes for business vehicle finance approval:
| Finance Lane | Typical Requirements | Who It Suits |
|---|---|---|
| Full doc | 2 years trading, 2 years tax returns, recent BAS statements, 3–6 months bank statements | Established businesses with complete financials — best rate positioning |
| Low doc | ABN (6–24 months minimum depending on lender), 2–4 quarters BAS, 3–6 months business bank statements, driver's licence | Tradies, sole traders, SMEs without current full financials — approved on cashflow evidence |
Low-doc asset finance is built specifically for the tradie and SME segment — businesses that run lean admin but have strong, demonstrable cashflow. In FY2027, non-bank and specialist lenders have materially increased their appetite for low-doc vehicle business, with many writing deals up to $150,000–$250,000 on the strength of an ABN, BAS and bank statements alone — without requiring full financials.
The combination that achieves the sharpest rate positioning within the low-doc tier is BAS plus business bank statements. Both are third-party verified and difficult to dispute, so lenders price them more favourably than a self-prepared income declaration. If your BAS numbers are solid, your bank statements mirror them, and the asset is clean — you're in a strong position.
Brian and Frank have been placing low-doc vehicle deals since their business banking days at NAB from 2003 — 45+ years combined experience means they know which lenders suit which profiles, and how to structure the file for best approval outcome.
Dealer Finance vs Broker — What ASIC's 2026 Review Found
If you've ever bought a vehicle through a dealership and been offered finance on the spot, you've encountered dealer-arranged finance. The convenience is real. The cost, however, can be significant.
ASIC's April 2026 motor vehicle finance review (report 26-132MR) examined more than 350,000 loans across eight major car finance providers. Among the findings: establishment fees of up to $9,000 on a loan of $49,000 at some lenders operating through dealer channels. The review also identified shortcomings in lender oversight of dealer distribution, with problematic sales practices flagged for regulatory action.
AFIA's new Finance Industry Code of Practice — the first of its kind for Australia's non-bank and specialist lending sector — comes into effect on 1 October 2026, tightening standards across the board. We cover the full ASIC findings and what they mean for SME borrowers in our earlier post: ASIC's Car Finance Review: What It Means for Your Next Vehicle Loan.
A commercial finance broker like IFG operates on a fundamentally different model. We're not tied to a single lender's product. We assess your business profile, the vehicle, and the deal structure — then place it with the lender offering the best combination of rate, approval likelihood and terms for your situation. You get a director-level response the same business day, not a junior processor running a single lender's scorecard.
Melbourne's Most Common Work Vehicles — and Typical Finance Ranges
Based on what Melbourne tradies and SMEs are financing through IFG's asset finance book in 2026, here are the most in-demand commercial vehicles and indicative finance ranges:
| Vehicle | Primary Use | Typical Finance Range |
|---|---|---|
| Toyota HiLux (used 2019–22) | Construction, trades, agriculture | $38,000–$52,000 |
| Ford Ranger (new/used) | Builders, site managers, service | $42,000–$68,000 |
| Isuzu D-MAX (new/used) | Trades, towing, logistics | $46,000–$72,000 |
| Toyota HiAce van | Couriers, electricians, plumbers | $36,000–$56,000 |
| Mercedes-Benz Sprinter | Prestige trades, medical, specialist | $65,000–$105,000 |
| Isuzu NPR / NLR light truck | Waste, hospitality, distribution | $65,000–$125,000 |
For prestige European commercial vehicles — Sprinter, Transit, Crafter — IFG's vehicle sourcing network can negotiate directly with dealer and wholesale contacts before the finance is arranged. That combination of sourcing and finance under one roof, handled by directors with 45+ years combined business banking experience, is something dealer finance simply doesn't offer.
For heavier equipment, plant or industry-specific asset finance — medical imaging, construction machinery, hospitality fit-out — see our commercial lending page for the full scope of what IFG arranges.
Frequently Asked Questions
- Can I use a chattel mortgage to finance a used ute?
- Yes. Chattel mortgage is available for both new and used vehicles. Lenders typically require the vehicle to be no older than 12–15 years at the end of the loan term, so most used utes from 2018 onwards are well within appetite. The vehicle also needs a clear PPSR search and a purchase price that aligns with Glass's Guide or Red Book valuation benchmarks.
- What documents do I need for low-doc business vehicle finance?
- Most low-doc lenders require: your ABN (usually 6–24 months registered), 2–4 quarters of BAS statements, 3–6 months of business bank statements, and a driver's licence. Full financial statements are not required. The combination of BAS plus bank statements typically achieves the best rate within the low-doc tier, as both are third-party verified. Loan amounts up to $150,000–$250,000 can generally be approved on this basis.
- Is dealer finance or broker finance better for a work vehicle?
- A broker typically offers access to a wider range of lenders and structures — meaning better rate competition and more flexibility on approval. ASIC's 2026 motor vehicle finance review found dealer-arranged loans can include establishment fees as high as $9,000 on a $49,000 loan. A broker like IFG is not tied to a single lender, so we place your deal where it's priced best for your profile — with director-level oversight at every step.
- How quickly can IFG settle business vehicle finance?
- For a clean file — clear ABN, solid BAS, straightforward vehicle — conditional approval can often be achieved same-day or next business day, with settlement within 2–5 business days depending on the vendor and settlement requirements. Brian or Frank will give you a realistic timeline on your first call. Enquiries are answered the same business day — by a director, not an assistant.
Talk to a director about your situation
Enquiries answered the same business day — by a director, not an assistant.
Book Your Strategy Session or call 0401 333 636 (Brian) · 0413 032 898 (Frank)
General information only — not credit, financial or taxation advice. Brian Hermosilla CR 485802 · Frank Marin CR 486546 · BLSSA Pty Ltd ACL 391237.