Ute finance for work and personal use
Buying a ute for work, for the family, or both? Here's how ute finance works, why the payload matters at tax time, and what repayments look like on a $65,000 dual cab.
My Finance Hub · Updated October 2026
Short answerFor a ute that's mainly for business, a chattel mortgage is the most common choice. For personal use, it's a secured car loan. Either way, check the payload before you buy: whether the ute is designed to carry 1 tonne or more can change how much GST and depreciation a business can claim, and whether fringe benefits tax applies.
Your finance options
- Chattel mortgage for a ute used mainly for business. You own the ute from day one and the lender takes security over it. If you're registered for GST, you can usually claim the GST in the price for the business-use portion, within the limits below. A balloon is optional. Chattel mortgage vs. lease.
- Secured car loan for a ute that's mainly for personal use. A fixed rate and fixed repayments, with the ute as security. Car loans.
- Low-doc loan if you're self-employed and your tax returns aren't up to date. Some lenders use BAS or bank statements instead. Low-doc car loans.
Why the 1-tonne payload matters
Payload is the load a ute is designed to carry, and it's listed on the spec sheet for each variant. For tax, 1 tonne is the line that matters:
- 1 tonne or more: the ute generally isn't a ‘car’ for tax purposes, so the car limit doesn't apply to depreciation or GST credits.
- Under 1 tonne: it depends on the design. If it counts as a car designed mainly to carry passengers, depreciation is based on no more than the car limit ($69,883 for 2026–27), and the most GST you can claim is $6,353.
Plenty of dual cabs come in under 1 tonne, especially plug-in hybrids, because the battery adds weight. Check the payload for the exact variant, not just the model, and ask your accountant how it applies to you.
Fringe benefits tax (FBT)
If your business provides the ute to an employee, which can include you if you work for your own company, FBT can apply. A dual cab can be exempt, but only if both of these are true:
- It's designed to carry 1 tonne or more, or it isn't designed mainly to carry passengers.
- Private use is limited to driving between home and work, travel that's part of the job, and private trips that are minor, infrequent and irregular, like an occasional run to the tip.
Using it as the family car or for weekend trips isn't exempt, and you need records to back the exemption up. The ATO explains this in why your dual cab utes may attract FBT.
Popular utes: what to check
Towing and payload vary by variant and model year, so check the spec sheet for the exact ute you're buying.
| Ute | Type | Braked towing | Payload |
|---|---|---|---|
| Toyota HiLux | Turbo-diesel, many with a 48V mild-hybrid system | Up to 3,500 kg | Varies by variant; over 1 tonne on some cab-chassis models |
| Toyota HiLux electric | Battery electric | About 1,600 kg | About 715 kg |
| Ford Ranger | Turbo-diesel | Up to 3,500 kg | Varies by variant |
| Ford Ranger PHEV | Plug-in hybrid | 3,500 kg | 808–973 kg, by variant |
| BYD Shark 6 | Plug-in hybrid | 2,500 kg (3,500 kg on the Performance version) | About 760–825 kg, by version |
| Isuzu D-Max | Turbo-diesel | Up to 3,500 kg | Around 1 tonne, by variant |
| Isuzu D-Max EV | Battery electric | 3,500 kg (claimed) | About 1,000 kg (claimed) |
Published figures from manufacturers and motoring media at the time of writing (October 2026). For tax, use the payload for your exact variant.
Electric or plug-in hybrid? Some lenders offer lower ‘green’ rates for electric and some hybrid vehicles. Ask us which lenders have green pricing for the ute you're looking at.
Example repayments on a $65,000 ute
A $65,000 ute over 5 years at an example rate of 8.5% p.a., with monthly repayments:
| Balloon | Monthly repayment | Owing at the end | Total interest |
|---|---|---|---|
| None | $1,334 | $0 | $15,014 |
| 20% | $1,159 | $13,000 | $17,537 |
| 30% | $1,072 | $19,500 | $18,798 |
Example only: principal and interest, fixed rate, repayments in arrears, no fees or charges. Try your own numbers in our repayment calculator.
Paid weekly, that's about $307, $267 or $247 a week. The 30% balloon cuts the repayment by about $262 a month, but it adds about $3,800 in interest, and you still owe $19,500 at the end. More on how balloons work.
Buying a used ute
- Private sale? The lender checks the PPSR, pays out any finance still owing and pays the seller at settlement. How private sale finance works.
- Lenders may limit how old the ute can be by the end of the loan, and older or high-kilometre utes may need a deposit or a shorter term.
- Tell us about modifications such as a lift kit, GVM upgrade or new tray. They can affect the lender's valuation and your insurance.
FAQs
Can I get ute finance with just an ABN?
Often, yes. Some lenders approve business vehicle loans with fewer documents, especially if your ABN has been registered for 2 years or more and you own property or have a strong credit history. Others ask for BAS or bank statements, and a newer ABN may need a deposit.
Can I claim the GST on a ute?
If you're registered for GST and use the ute for business, you can usually claim the GST in the price for the business-use portion. If the ute counts as a car for tax purposes, the most you can claim for 2026–27 is $6,353. Check with your accountant.
Is a dual cab ute a car for tax purposes?
It depends on the payload and design. A ute designed to carry 1 tonne or more generally isn't a car. Under 1 tonne, it depends on whether it's designed mainly to carry passengers. Your accountant can confirm for the ute you're looking at.
Can I put a balloon on a ute loan?
Yes. Balloons are common on chattel mortgages, and some lenders offer them on consumer car loans. The size depends on the lender, the loan term and the ute's age. A balloon lowers your repayments but increases the total interest.
Can I finance accessories like a canopy, tray or bull bar?
Often, yes, if they're fitted by the dealer and on the invoice when you buy. Lenders may limit how much of the loan can go toward accessories.
Talk to us
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General information only. It doesn't take into account your objectives, financial situation or needs. Credit criteria, fees and charges apply. My Finance Hub is a Credit Representative (553769) of Purple Circle Financial Services (Australian Credit Licence 486112).