Should You Finance the Trailer Separately in FY27?
Trailer Finance: Split From the Truck? | Switchboard Finance
Truckie Hub
Asset Finance · Trailer · Chattel Mortgage
Should You Finance the Trailer Separately in FY27?
FY27 is when a lot of owner-drivers add a trailer to the fleet. The structuring question is whether to split the trailer onto its own facility or fold it into the truck loan. That single call shapes your rate, your cashflow and how clean your next finance application looks.
Quick Answer
In most cases, splitting the trailer onto its own low doc asset finance facility keeps the prime mover line clean and the structure flexible. Bundling can be simpler, but a separate asset finance facility usually gives you more room to move.
Should you finance a trailer separately from the truck?
Splitting the trailer onto its own facility is the cleaner move for most owner-drivers heading into FY27. A trailer is a depreciating asset with a clear business use, which means it sits comfortably on low doc asset finance in its own right, rather than riding on the truck loan. Keeping the prime mover line clean matters here: when the truck facility is not also carrying the trailer, your next application reads simpler and your borrowing room on the truck stays intact.
The trade is a second facility to manage, but the flexibility usually outweighs it. If the truck itself is the question rather than the trailer, our low doc vehicle finance page covers that, and the guide on sole trader versus company finance shows how the structure changes with your entity.
Which split suits your FY27 plan?
The right structure depends on what you are buying and when. Pick the situation that matches your year and see where the decision tends to land.
Select your scenario
Split it onto asset finance
If the truck stays and only the trailer is new, finance the trailer on its own low doc asset finance facility. It keeps the prime mover line clean and lets you match the term to how the trailer earns.
Cleanest structureWe have also covered the case for bundling the truck and trailer on one facility, which still suits some operators. Either way, rates and balloon appetite vary between the major banks, non-bank lenders and specialist funders, so it pays to price both structures before you commit.
What makes a trailer facility move faster
In the trailer files I structure, the split that keeps the prime mover line clean almost always reads better, and a tidy file gets to a decision faster. Here is what speeds an asset finance approval and what slows it down.
Moves Faster
- ABN active and registered, ideally past the sweet spot around 2 years, indicative
- A trailer with a clear business use and a real quote or invoice
- The prime mover line kept clean and separate
- Up to date BAS and a tidy bank statement read
Slows It Down
- A trailer bundled onto an already stretched truck loan
- A newly registered ABN with little trading history
- Private sale paperwork with gaps or no formal quote
- A balloon set with no view of the cashflow it has to fit
One more thing that moves a file is knowing the trailer type and build before you apply. A standard box or curtainsider on a common spec is read faster than a specialised or one-off trailer, because the lender can value it against known resale data rather than guessing. If the trailer is unusual, a clear quote and a few comparable sales help the file along.
Get the depreciation and write-off timing right
The other half of the trailer decision is timing. A trailer bought and in use before year end can change how the depreciation falls, and the instant asset write-off settings matter here. The $20,000 instant asset write-off applies for 2025-26 for small businesses under the turnover threshold, and the Government has announced it will be made permanent from 1 July 2026. That change is not yet law, so without enabling legislation the threshold reverts to around $1,000 from 1 July 2026 (see business.gov.au). Because the rules sit across two financial years, the call on whether to buy before or after 30 June is worth running past your accountant and a broker together.
A chattel mortgage is the usual structure for a trailer on asset finance, with the lender holding security while you own it from day one. A balloon set to suit cashflow, example only, can keep the monthly cost in step with what the trailer earns. Our truckie loan pack lays out what to have ready so the structure is settled before you sign.
Match the term to how long you will run the trailer, not the truck that pulls it. Trailers often outlast the prime mover, so a term set to the trailer's working life keeps the cost honest and stops a balloon landing while the asset is still earning. Where the trailer is registered to the business and used to produce income, the GST on the purchase price is generally claimable through your activity statement, though how and when depends on your registration and accounting method, so confirm the treatment with your accountant. Getting the term and the registration right at the start is cheaper than restructuring once the facility is live.
What happens when the trailer term ends
The end of the facility is where a split structure pays off again. When the trailer sits on its own line, you can deal with it on its own timetable rather than waiting on the truck. If a balloon is due, the usual options are to pay it out, refinance the residual onto a fresh term, or trade the trailer and roll into a replacement, and none of those moves disturb the prime mover line.
Which option fits depends on whether the trailer still earns and whether you plan to keep running it. A trailer in good order with years of work left often suits refinancing the residual, while a unit near the end of its working life is usually cleaner to trade or pay out. Keeping the facilities separate is what makes this a single, contained decision rather than one tangled up with the truck. If you are weighing it up, the truckie loan pack sets out what to have ready before you refinance or replace.
Splitting the trailer onto its own asset finance facility is the structure that keeps your FY27 options open: a clean prime mover line, a term and balloon matched to the trailer, and room to upgrade without unwinding the truck loan. Bundling can still suit operators buying truck and trailer together, but it is a choice to make on purpose, not by default. The Truckie Hub ties the rest of the year together.
Key takeaway: Split the trailer onto its own low doc asset finance facility unless there is a clear reason to bundle, and confirm the write-off timing before 30 June.Frequently Asked Questions
Financing a trailer separately from the truck is the cleaner structure for most owner-drivers, because it keeps the prime mover line free and lets each asset carry its own term. Splitting the trailer onto its own low doc asset finance facility also means your next finance application reads simpler. Bundling can suit operators buying both at once, but it is worth deciding on purpose.
A trailer can be financed on asset finance in its own right, because it is a depreciating asset with a clear business use. Most owner-drivers use a low doc facility where the trailer secures the loan and full financials are not required. The structure is the same one used for other business equipment.
A trailer is usually financed with a chattel mortgage, which is the default structure for a business asset. The lender takes security over the trailer while you own it from day one, and a balloon can be set to suit cashflow, example only. It is the same structure most operators use for the truck.
You do not need to own property to finance a trailer, since asset finance is secured by the trailer itself. That said, if you do have equity, a property-backed facility can get the sharper rate, indicative and varies by lender, so it is worth pricing both ways. A sole trader or company structure can also change how the file is read.
A trailer used in the business may qualify for the instant asset write-off if it is installed and ready for use before year end and the business is under the turnover threshold. The $20,000 write-off applies for 2025-26 and is announced to become permanent from 1 July 2026, though that change is not yet law. Confirm the timing with your accountant, because it sits across two financial years.
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