Truck and van finance for removalists

The removalist’s toolkit

A removalist business needs vehicles that carry a lot, protect what they carry and get it on and off safely. That usually means:

• large high-roof vans for small moves, single items and furniture delivery;
• pantechs — light or medium rigid trucks with enclosed box bodies — for household and office moves;
• tail-lifts for heavy items;
• trailers for overflow or specialised items.

The right mix depends on the jobs you do most — apartments, family homes, offices, interstate.

Van or pantech?

	Large van	Pantech
Capacity	Small moves, single items	Full households, offices
Driver licence	Often a standard car licence	May need light or medium rigid licence
Purchase cost	Lower	Higher
Parking and access	Easier in tight streets	Harder in inner-city areas
Staffing	Wider pool of drivers	Need appropriately licensed drivers

Licence classes depend on the vehicle’s gross vehicle mass. Check with your state licensing authority before you buy, because it affects who you can hire to drive. See van finance and light truck finance.

How removalist vehicles are financed

Most removalist trucks and vans are financed through a chattel mortgage. The business owns the vehicle, the lender holds security, and a GST-registered business buying from a registered seller can usually claim the GST in the price for business use. Trucks and goods vans generally sit outside the car limit.

What lenders look at

Factor	What helps
Experience	Years in removals, even as an employee
Bookings	Steady booking history, repeat business, commercial clients
Truck body	Recognised body builder, good condition
Tail-lift	Working, serviced, compliant
Age at end of term	Within the lender’s limits
Business banking	Regular deposits, no dishonours

Buying a used pantech

Used pantechs are common, and many are good buys. Check:

• body condition — floor, walls, roller door or barn doors, tie rails;
• tail-lift operation and service records;
• mechanical condition and kilometres;
• that registration and any heavy vehicle requirements are current;
• a PPSR search on the VIN to confirm no money is owing.

If you’re buying at auction, get approval first — see auction vehicle finance.

Seasonal peaks and quiet months

Removals tend to cluster around month-ends, school holidays and the end of leases, with quieter stretches in between. That makes cash flow planning important:

• keep a cash buffer from busy months to cover repayments in quiet ones;
• think about whether a balloon keeps repayments comfortable, and plan the exit;
• ask whether lenders offer schedules that suit your income pattern.

Growing from one truck to several

Many removalist businesses start with one truck and a couple of offsiders. Adding a second truck lets you run two jobs a day. When you get to three or more, aligned terms and replacement planning help a lot. See fleet finance. If your credit has a few marks from earlier years, see past credit issues.

Illustrative example: adding a second pantech

Illustrative only. A two-truck removalist business turns away jobs every month-end. The owner finds a five-year-old pantech with a recognised body and a serviced tail-lift. With two years of business bank statements and a clean repayment history on the first truck, a lender approves a chattel mortgage. One of the existing offsiders already holds the right licence class, so the truck is working from the first weekend.

Tail-lifts and safety equipment

Tail-lifts reduce manual handling and speed up loading, but they add weight, cost and maintenance. If you’re choosing between trucks with and without one, consider the jobs you do most, your team’s safety and your insurer’s requirements. Trolleys, straps, blankets and ramps are usually separate purchases from the truck; lower-cost items may qualify for the ATO’s instant asset write-off if your business is eligible.

Interstate work

If you do long-distance moves, the truck’s fuel economy, cab comfort and reliability matter more. Interstate work may also bring heavier vehicle requirements and different registration considerations — check with your state authority and, for heavier trucks, the national heavy vehicle arrangements.

Fitting out a removalist truck

A pantech is more useful with the right fit-out: tie rails along the walls, a non-slip floor, internal lighting, a ramp or tail-lift, and storage for blankets and straps. Fit-outs supplied by the body builder or dealer on the same invoice as the truck can usually be financed with it. Items added later are typically paid for separately.

Replacing versus repairing

Removalist trucks work hard, and older bodies can need floors, doors or tail-lift repairs. When repair bills start to rival a year’s repayments on a newer truck, it may be time to replace. Our guide on whether to repair or replace a work vehicle walks through the decision step by step.

Hiring versus owning extra capacity

If you only need a second truck for month-end peaks, hiring may be cheaper than owning. Once you’re hiring most weeks, owning usually wins. Track your hire costs for a few months — the numbers will tell you when it’s time to finance your own.

Ready to move up?

Tell us about the truck or van and your business — it takes about a minute.

There’s no credit check when you first enquire. Your details stay with one specialist rather than being distributed to lenders, and that person calls you to understand your bookings, the vehicle and your drivers. Please be accurate about the truck’s age, body and your experience so we can match you with the right lender first time. Get started.