What a lender will add to a chattel mortgage: on-road costs, duty, rego, CTP, insurance, accessories and fees, and how GST and luxury car tax apply.
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Chattel Mortgage · On-Road Costs · Amount Financed
Stamp duty, rego, CTP, accessories and some fees can usually go into a chattel mortgage. Here is what lenders add, what stays out of pocket, and how GST and luxury car tax apply to the extras.
Quick Answer
Most lenders will include on-road costs, accessories fitted before settlement and some loan fees in a chattel mortgage, as long as they appear on the dealer's tax invoice and the vehicle's value supports the total. Insurance and warranties are optional extras, and GST and luxury car tax follow the price whether you finance it or not.
Also called: amount financed, financed on-road costs, drive-away finance. The first is the lender's term for the total loan; drive-away is the dealer's term for the price with on-road costs included.
Can you include on-road costs in a chattel mortgage?
You can usually include on-road costs in a chattel mortgage, because the lender finances the drive-away price on the dealer's tax invoice rather than the advertised vehicle price alone. Stamp duty, registration, compulsory third party insurance and dealer delivery all sit on that invoice when you buy from a dealer, and most lenders will fund the total. In plain terms, on-road costs are usually financed with the vehicle, though each lender sets its own limit.
A chattel mortgage is a loan secured against the vehicle, so the question is not really whether a cost is allowed. From the underwriter's seat, the question is whether the cost is on the tax invoice, whether it is tied to the vehicle, and whether the vehicle's value still supports the amount financed once the extras are added. Duty and rego add nothing to resale value, so they push the loan above what the vehicle is worth on day one.
That is why some lenders cap the total at a share of the vehicle's value, while others will finance the full drive-away figure for an established business with clean conduct. How far above the vehicle's value a lender will go is its own topic, covered in what LVR means in asset finance. This post stays on what goes into the number. For the product itself, start with our chattel mortgage page.
Which on-road costs do lenders usually finance and which must you pay upfront?
Lenders usually finance the on-road costs that the dealer itemises and collects at settlement, and leave you to pay anything you arrange yourself after the sale. The simplest test is whether a cost is on the tax invoice or out of your pocket. If the dealer collects it and lists it, the lender can see it and fund it. If you pay a government agency or another supplier directly, the lender has nothing to fund against.
On the tax invoice
- Vehicle price and dealer delivery
- Stamp duty collected by the dealer
- Registration and CTP for the first period
- Accessories fitted before settlement
- Luxury car tax built into the price
Out of your pocket
- Duty and transfer fees on a private sale
- Accessories bought after you take delivery
- Renewal rego and CTP in later years
- Fuel, tolls, servicing and tyres
- Anything quoted verbally but not invoiced
A private sale works differently. You pay the seller, then you pay transfer duty and the registration transfer to your state's transport authority yourself, so those costs typically sit outside the loan. The NSW Government's guide to vehicle finance and contracts is a useful plain-English read on what a buyer signs and pays for, whichever state you are in.
Which vehicles and add-ons a business can finance at all is covered in our business vehicle finance guide. If you are still deciding whether a chattel mortgage is the right structure, our small business chattel mortgage guide walks through the basics first.
Can you add insurance, extended warranties or gap cover to the loan?
Some lenders will add gap cover, extended warranties or loan protection to the amount financed, but an add-on is optional, never a condition of approval. If a dealer tells you the finance depends on buying one, ask them to show you where the lender says so. It will not.
The cover lenders do insist on is comprehensive insurance on the vehicle, with the lender noted as an interested party. Many businesses pay that premium directly to their insurer each year, and that is usually the cleaner option. Financing a year of insurance into a five year loan means you are still paying interest on that premium long after the policy has expired.
The same logic runs through every extra: what the lender adds, it charges interest on. A warranty or gap policy financed over the full term costs more than its sticker price. Regulators have raised concerns about add-on insurance sold alongside car finance, mostly on consumer loans, and the lessons carry across. The add-ons that cause regret are usually the ones agreed to at the finance desk without a written quote or a cooling-off window.
- Gap cover. Pays the difference between the insurance payout and the loan balance after a write-off. Most useful when the loan starts well above the vehicle's value.
- Extended warranty. Check what the manufacturer warranty already covers before paying for more.
- Loan protection. Read the exclusions for self-employed borrowers closely; some policies are written for employees.
Can accessories and fit-outs like canopies, toolboxes and signwriting be financed?
Accessories and fit-outs can usually be financed when they are fitted before settlement and listed on the dealer's tax invoice with the vehicle. Canopies, toolboxes, roof racks, towbars, drawer systems and ladder racks are the common ones on a work ute. The rule that matters is timing: accessories fitted before settlement, not after.
Once the loan settles, the lender's security is the vehicle as it stood on the invoice. A canopy bolted on a month later is a separate purchase, and you would need cash, a separate loan or a top-up for it. If you know the build you want, get the dealer or their fit-out partner to quote and invoice it as part of the sale.
On a heavily fitted vehicle, the lender's first question is whether the fit-out adds resale value or is specific to your business. A quality canopy or tray generally holds value. Signwriting, custom shelving and electronics tied to your trade usually do not, and some lenders will fund them only up to a modest share of the total. For bigger builds on trucks and bodies, our truck add-ons valuation pack explains how lenders value the extras.
If the vehicle is a passenger car rather than a ute, accessories fitted at purchase also count toward the car's cost for GST, depreciation and luxury car tax, which the next section covers. Our vehicle finance page covers the wider range of vehicles we arrange finance for.
How does GST and luxury car tax work on financed extras?
GST and luxury car tax are worked out on the purchase price, including the extras, whether or not you finance them. Financing a cost does not change its tax treatment. If your business is registered for GST, you typically claim the GST on the purchase in the business activity statement for the period you buy, for the business use share, even though you repay the loan over years.
Two limits apply to cars. First, the GST credit stops at the car limit. For the 2026-27 financial year the car limit is $69,883, so the most GST you can claim on a car is $6,353, however much you spend. A ute or van designed to carry a tonne or more is typically not a car for this rule, which is one reason work vehicles and executive cars are treated so differently.
Second, luxury car tax is part of the price, not a fee. It is charged at 33% on the amount above the threshold, which for 2026-27 is $91,661 for fuel-efficient vehicles and $80,809 for other vehicles. Dealer-fitted accessories count toward that value, so a premium fit-out can push a car over the line. Because it is in the price, the lender will usually finance it with the vehicle. How lenders approach higher-value cars is covered in luxury car finance for business owners.
| Cost | Usually financed (varies by lender) | GST credit for a registered business | Note |
|---|---|---|---|
| Vehicle price | Yes | Usually, for the business use share | On a car, capped at the car limit credit |
| Dealer delivery | Usually, when invoiced | Usually | Forms part of the vehicle's cost |
| Stamp duty | Usually, on a dealer sale | No | A state duty, no GST charged |
| Registration | Usually, first period only | Typically no | Government fee; renewals are paid by you |
| CTP insurance | Usually, first period only | Varies by state and scheme | Ask your accountant how your state's premium is treated |
| Comprehensive insurance | Sometimes | Usually, for the business use share | Often cleaner to pay the insurer directly |
| Extended warranty | Sometimes | Usually | Optional; interest runs for the full term |
| Accessories on the invoice | Usually, if fitted before settlement | Usually | On a car, counts toward the car limit and LCT value |
| Luxury car tax | Usually, as part of the price | No | No credit for the tax itself |
| Establishment fee | Often added to the loan | Typically no | Finance charges are generally input taxed |
Sources: Australian Taxation Office, Luxury car tax rate and thresholds, last updated 1 June 2026. Australian Taxation Office, Purchasing a motor vehicle, last updated 3 June 2026. Both read 10 November 2026.
If your business is not registered for GST, none of the credits above apply and the full price is your cost. Our guide to a chattel mortgage when you are not registered for GST covers that case. Depreciation follows the same cost base, so an accessory financed at purchase is usually depreciated with the vehicle.
Can lender and broker fees be added to the amount financed?
Lender establishment fees and the registration of the lender's security on the PPSR are usually added to the amount financed rather than paid upfront, though this varies by lender. Most borrowers prefer it that way because it keeps cash in the business at settlement, and the cost is modest beside the vehicle price.
The trade-off is the same as every other extra: the fee is now earning interest for the whole term. On a small loan, a fixed fee can make a noticeable difference to the comparison rate, which is why it pays to compare the total cost, not only the repayment. What each fee is for, and which ones are worth questioning, is set out in our breakdown of low doc asset finance fees.
In practice the split is simple. Fees that are part of setting up the loan go into the loan. Monthly account fees are charged with each repayment. Early payout and late payment fees are not part of the amount financed at all, because they only arise later. For current pricing across the market, see our chattel mortgage rates guide.
How much more does it cost to finance the extras?
Financing the extras costs the interest on them for the full loan term, plus any effect on the rate if they lift the loan well above the vehicle's value. Nothing else changes. If you finance a few thousand dollars of duty, rego and accessories over five years, you repay those dollars plus interest at the same rate as the vehicle itself.
The less obvious cost is the loan to value ratio. Duty, rego, insurance and most fees have no resale value, so a fully loaded drive-away loan can start well above the vehicle's worth. Some lenders price that risk into the rate or ask for a deposit, others are comfortable for a strong file. If you also add a balloon, the balance at the end is higher too.
- Ask for the invoice itemised. See every on-road cost and accessory as its own line before you sign.
- Decide line by line. Pay small one-off items in cash if the business can carry them; finance the rest.
- Run both versions. Use our chattel mortgage calculator with and without the extras to see the difference in repayment and total interest.
- Check the tax side. Confirm with your accountant which costs carry a GST credit and how each is depreciated.
For a fuller walk through the product from approval to the final repayment, our chattel mortgage guide is the place to start, and the Business Owners Hub collects everything else we write for business owners.
A chattel mortgage can usually carry the full drive-away price: the vehicle, dealer delivery, stamp duty, first rego and CTP, accessories fitted before settlement, luxury car tax and the lender's setup fees. What stays out is anything bought after settlement, anything paid to someone other than the dealer, and the running costs. Every financed dollar earns interest for the whole term, so finance the extras because it suits your cash flow, not by default, and remember the GST credit on a car is capped however much you spend.
Key takeaway: get every extra itemised on the dealer's tax invoice before settlement, then decide line by line what to finance and what to pay in cash.Frequently Asked Questions
On-road costs can usually be included in a chattel mortgage when the dealer lists them on the tax invoice with the vehicle. That covers stamp duty, first registration, CTP and dealer delivery in most cases, though some lenders cap the total against the vehicle's value. Our chattel mortgage calculator shows the repayment with and without the extras.
Stamp duty and registration on a business car can usually be financed when you buy from a dealer, because both are collected at settlement and itemised on the invoice. On a private sale you pay them to your state transport authority yourself, so they typically sit outside the loan. Our vehicle finance page covers dealer and private purchases.
Insurance can sometimes be added to a chattel mortgage, but it is optional and never a condition of approval. Lenders require comprehensive insurance with their interest noted, and many businesses pay that premium directly so they are not paying interest on it for years. Gap cover and warranties can be financed by some lenders if you choose them.
A canopy or toolbox can usually be financed with the ute when it is fitted before settlement and appears on the dealer's tax invoice. Anything added after settlement is a separate purchase that needs cash or separate finance. Our ABN car loan page covers financing work utes for ABN holders.
You can claim GST on some on-road costs if your business is registered for GST, but not all of them carry GST. Dealer delivery, accessories and insurance usually do, while stamp duty, registration fees and luxury car tax do not, and on a car the total credit is capped at the car limit. If you are not registered, see our post on a chattel mortgage when you are not registered for GST, and confirm the details with your accountant.
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