Vehicle finance for couriers and last-mile delivery

The courier’s vehicle is the business

For an owner-driver, the van is the income. No van, no deliveries, no pay. That makes three things matter more than anything else in courier vehicle finance: getting approval as fast as possible, choosing a vehicle that can handle the kilometres, and planning the next replacement before the current vehicle becomes unreliable.

Who we help in delivery

• owner-drivers subcontracting to parcel and freight companies;
• platform drivers delivering through app-based services;
• last-mile delivery businesses running a few vans across a city;
• specialist couriers — medical, legal documents, same-day business deliveries;
• food and grocery delivery operators, including refrigerated vans.

Which vehicle for which route?

Work	Often suits
City parcels, tight streets	Small or medium van; electric where charging is reliable
Suburban multi-drop	Medium to large van
Bulky goods, furniture, white goods	Large van or light truck
Refrigerated food	Van or light truck with a refrigeration unit
Documents and small items	Small car or compact van

See van finance and light truck finance for vehicle-specific detail.

What lenders want from couriers

Evidence	Why it matters
Contract or subcontract	Shows guaranteed or regular work
Platform earnings history	Shows real income over time
Bank statements	Confirms deposits and spending pattern
ABN and GST history	Shows how long you’ve been operating
Driving experience	Especially if the ABN is new
Vehicle choice	Must suit the route and the kilometres

If you’re new to running your own vehicle, a contract in hand and years of driving for someone else make a strong case. See vehicle finance for new ABNs.

Kilometres, balloons and replacement

Courier vans rack up kilometres quickly. That affects finance in two ways:

1. Balloons need care. A van with very high kilometres can be worth less than expected at the end of the term. If you use a balloon, keep it conservative.
2. Replacement planning matters. Decide when you’ll replace the van — by kilometres or years — and set the finance term to match. Changing over before reliability drops protects your income.

Electric vans for delivery

Electric vans can suit delivery work: predictable daily kilometres, stop-start driving and overnight charging at home or a depot. Before you commit:

• check real-world range with your typical load and in summer heat;
• confirm you can charge reliably — at home, at a depot or nearby;
• check battery warranty and service options in your area;
• compare total running costs, not just the purchase price.

See electric vehicle finance.

Tax basics for couriers

If you’re registered for GST and buy from a dealer, you can usually claim the GST in the price for business use. Vans designed mainly to carry goods are generally outside the car limit. For car expenses, sole traders can use the cents-per-kilometre or logbook method; for vans and other non-car vehicles, the ATO says actual costs apply. Your accountant will set this up properly — keep fuel, toll and service receipts from day one.

From one van to a small fleet

Many courier businesses start with one owner-driver and grow by adding vans and drivers. Once you’ve got three or more, aligning finance terms and planning replacements together saves headaches. See fleet finance.

Illustrative example: an owner-driver’s second van

Illustrative only. An owner-driver has subcontracted to a parcel company for three years. He’s offered a second run and needs another van and driver. With three years of bank statements showing steady contract income and a clean repayment history on his first van, he finances a late-model medium van through a chattel mortgage, matching the term to his first van so both can be replaced together.

Contract, subcontract or platform: how lenders see each

Not all courier income looks the same to a lender:

Income type	How lenders tend to view it
Direct contract with a business customer	Strong, especially with a fixed term
Subcontract to a parcel or freight company	Strong if there’s a track record or written agreement
App-based platform work	Viewed on earnings history; longer history helps
Ad hoc jobs	Harder to rely on; bank statements need to show consistency

Mixing income sources is common, and that’s fine. What matters is that your bank statements show steady, explainable deposits.

Downtime planning

For a courier, a van in the workshop means a run handed to someone else — and sometimes a contract at risk. Before you buy, think about:

• warranty and service intervals, and whether the dealer offers loan vehicles;
• roadside assistance that covers commercial vehicles;
• a relief vehicle plan, such as a short-term rental arrangement;
• replacement timing, so the van is changed before reliability drops.

Insurance requirements

Lenders require comprehensive insurance on financed vehicles. Couriers should also think about goods-in-transit cover and whether their contract requires specific insurance. Factor premiums into your budget when you work out what you can comfortably repay.

Need a van for your next run?

Tell us about the work and the vehicle — the enquiry takes about a minute.

There’s no credit check when you first enquire. Your details stay with one specialist rather than being shopped to a bunch of lenders, and that person calls you to understand your contract or platform income and the vehicle you need. Please be accurate about your earnings and how long you’ve been driving — it’s what gets you matched with the right lender first time. Start your enquiry.