Quick answer
Mobile service businesses — mechanics, dog groomers, detailers, cleaners, locksmiths, hairdressers and more — rely on a van or ute fitted out to do the work at the customer's door. Finance is usually a chattel mortgage covering the vehicle and, where invoiced together, the fit-out. Lenders look at your experience, bookings or customer base, and the fit-out's builder and value.
Key points
- The vehicle and fit-out together are your workshop — finance both if you can.
- Fit-outs supplied and invoiced with the vehicle are easiest to include.
- Experience and existing customers strengthen new-business applications.
- Downtime costs bookings, so reliability matters more than price alone.
- Common vehicles
- Small and medium vans, utes
- Usual structure
- Chattel mortgage
- Fit-outs
- Often financeable with the vehicle
- Key factor
- Experience and bookings
Taking the business to the customer
Plenty of small businesses now run without a shopfront. Instead of renting a shop or workshop, the business goes to the customer: a groomer in the driveway, a mechanic in the office car park, a detailer at the house, a locksmith at the front door. The van is the shopfront, the workshop and the storeroom.
Who we help
| Business | Typical vehicle and fit-out |
|---|---|
| Mobile mechanics | Van or ute with racking, compressor, tools |
| Dog groomers | Van with tub, water tank, dryer, table |
| Car detailers | Van or ute with water tank, pressure washer, generator |
| Cleaners | Van with storage for equipment and chemicals |
| Locksmiths | Van with key-cutting equipment |
| Mobile hairdressers and beauty | Van or car with storage |
| Windscreen and tyre services | Van or ute with specialist racks |
| Pest control | Ute or van with chemical storage |
How mobile service vehicles are financed
Most mobile businesses use a chattel mortgage: the business owns the van, the lender holds security over it, and a GST-registered business can usually claim the GST in a dealer price for business use. Vans designed mainly to carry goods generally sit outside the car limit.
Getting the fit-out into the finance
The fit-out is often what makes the business work, and it can be a big part of the cost. Finance is easiest when:
- the fit-out is installed by the dealer or a recognised fit-out company;
- it appears on the same invoice as the vehicle, or on a separate invoice approved by the lender before settlement;
- it’s itemised, so the lender can see what it’s paying for.
Fit-outs added later usually need separate funding. Lower-cost separate items may qualify for the instant asset write-off if your business is eligible.
Going mobile for the first time
Many mobile businesses are started by people leaving a salon, workshop or employer. Lenders view new ABNs cautiously, but experience counts. What helps:
- your qualifications and years in the trade;
- clients who are likely to follow you;
- confirmed bookings or contracts;
- a deposit or trade-in;
- a sensible vehicle choice.
See vehicle finance for new ABNs.
Reliability over price
For a mobile business, every day the van is off the road is a day of cancelled bookings. That changes the maths on new versus used. A new or demo van with warranty can cost more up front but less in lost income. A well-kept used van with history can work too, if you have a trusted mechanic. See new, used or demo.
Tax basics
- GST — usually claimable on a dealer purchase for business use if you’re registered.
- Running costs — the business-use share is generally deductible. For sole traders, the ATO says vehicles other than cars use the actual costs method, so keep every receipt.
- Depreciation — the business-use share of the van and fit-out, worked out by your accountant.
Electric vans for mobile services
Electric vans can suit mobile services with predictable daily routes and home charging. Some fit-outs need power from a generator or battery system — check how that works with an EV. See electric vehicle finance.
Illustrative example: a mobile dog groomer
Illustrative only. A groomer with six years’ salon experience goes mobile. She buys a new medium van with a professional grooming fit-out from a recognised converter, invoiced with the van. With her experience, a list of salon clients keen to follow her and a deposit, a lender approves a chattel mortgage covering the van and fit-out. She’s grooming in driveways within a fortnight.
Choosing between a van and a ute
Most mobile services use vans, but some are better in a ute:
| Consideration | Van | Ute |
|---|---|---|
| Weather protection | Fully enclosed | Needs a canopy |
| Secure storage | Lockable, out of sight | Canopy drawers and boxes |
| Working inside | Possible — grooming, key cutting | Not really |
| Towing | Possible with some models | Usually stronger |
| Parking | Can be tight with high roofs | Usually easier |
If customers or pets need to be inside the vehicle, or you work in bad weather, a van usually wins. If you carry heavy equipment or tow a trailer, a ute might suit better. See van finance and ute finance.
Signage and branding
A well-signwritten van works as advertising every time it’s parked outside a customer’s home. Signwriting is usually a separate cost from the vehicle and fit-out, so budget for it, and check with your lender if you’d like it included in the finance.
When to add a second van
A second van makes sense when you’re turning away bookings regularly, have a trusted person to drive it, and the extra income comfortably covers repayments and wages. Starting with a slightly older second van can keep the risk lower while you test demand.
Protecting the fit-out
Specialised fit-outs can be expensive to replace. Check that your insurance covers the fit-out and equipment as well as the vehicle, and keep the itemised invoice somewhere safe. If the van is written off, those records make an insurance claim far simpler.
Ready to take your business on the road?
If you’re in mobile food, see food truck finance. Otherwise, tell us about your van and fit-out — it takes about a minute.
Enquiring doesn’t involve a credit check, and your details aren’t passed around to lenders. One specialist reads your enquiry and calls you to understand your trade, your customers and the vehicle. Accurate details about the fit-out and your experience help us find the right lender first time. Start your enquiry.
Frequently asked questions
Can I finance a van with a grooming or detailing fit-out?
Yes, if the fit-out is supplied and invoiced with the van or by a recognised fit-out company before settlement with the lender's agreement. Specialised fit-outs may suit fewer lenders, so mention it when you enquire.
I'm leaving a salon or workshop job to go mobile. Can I get finance?
Often, yes. Your experience in the trade, any clients following you and a deposit all help. A sensible vehicle choice also makes approval easier.
Should I buy new or used?
If downtime would cost you bookings, a new or demo van with warranty may be worth the extra. A good used van with service history can work well on a tighter budget.
Can I claim the van's costs at tax time?
Generally, the business-use share of running costs and depreciation can be claimed. Sole traders using a van (not a car) use actual costs. Keep receipts and a record of use.