July 1, 2026 Automotive & Transport

How Truck Dealership Owners Approach a Commercial Mortgage

If you run a truck dealership, the showroom, hardstand and workshop anchor your sales, service and parts income. Buying that site turns rent into repayments and builds a long-term asset for the business. At Ardent Capital Group we speak with dealership owners about this kind of commercial property purchase, and this guide walks through how a lender reads one.

Ardent Capital Group is a specialist in commercial mortgages for truck dealership operators across Australia. Our team can help you move from tenant to owner, and give you clear lending advice on structure and strategy.

Access finance from $100K to $10M+, structured for owner-occupiers and investors.
Over $500M in funding facilitated across more than a decade for 1,000+ borrowers.
National coverage across Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra, Hobart and surrounding regional towns.
Strategy-led lending advice on LVR, structure and repayment profile for truck dealership premises.

Our brokers work the full lender panel for a dealership property loan, not a single bank.

Why truck dealership owners choose to buy

A dealership's value is anchored to the site. You need wide frontage to highway traffic, large hardstand with B-double access, compliant wash bays and oil separators, a workshop with heavy-vehicle pits or hoists, high-clearance doors and strong three-phase power. Relocation is expensive and disrupts sales, parts logistics and booked servicing. Ownership gives control over site upgrades, signage rights and yard configuration, while repayments build equity inside the business.

Main drivers for truck dealership property ownership:

Control and continuity over a specialised site, with fit-out and apron built for heavy vehicles and regular demonstration drives.
Capital capture where repayments build an owned asset, supported by diversified revenue from new and used sales, service, and parts.
Stability on operating costs through negotiated terms that reduce exposure to rent rises and make long-term yard improvements viable.
Bank appetite for owner-occupiers in resilient transport-adjacent sectors that show consistent service and parts income through cycles.

Buying may not suit every plan. A short lease horizon, an expected OEM network move, a desire to shift to a larger highway frontage, or capital that is better deployed into inventory and floorplan rotation may point you to wait. The decision is yours.

How lenders approach a truck dealership purchase

Deposit and LVR. A truck dealership site is standard commercial security, and with the lenders that gear industrial and automotive property it can reach up to 80 per cent of value, so a deposit from around 20 per cent. A dealership carries a lot of hardstand, and the more yard and the less building a site is, the closer the LVR sits to 65 per cent, which means a larger deposit. Owner-occupiers and stronger sites tend to access the higher end, and additional property as security can support higher gearing again.

Loan term and structure. Terms commonly run 15 to 25 years, and non-banks can go longer than the banks, which usually publish 10 to 15. Repayments can be principal and interest to build equity faster, or interest only for a period to prioritise cash flow around seasonal sales or manufacturer campaigns.

Security and serviceability. The property is the primary security. Lenders assess business financials, including multi-year profitability, gross margins across new and used truck sales, and the stability of service and parts revenue. They will review existing floorplan facilities, ensure the mortgage sits outside inventory funding, and test serviceability with interest rate buffers. Guarantees and a general security agreement may be required.

Owner-occupier treatment. Lenders generally view owner-occupied premises favourably. Control of the property, lower vacancy risk and a trading business that relies on the site tend to support stronger credit outcomes.

Ownership structures a lender sees

Many truck dealership operators already hold the trading business in one entity and the premises in another, often a company or a separate trust that leases the site to the dealership at a commercial rent. A lender reads that inter-entity rent as the serviceability line, and the arrangement keeps the property and the trading risk in separate hands. Where a dealership sits inside a group, lenders are used to seeing a holding company over an operating company, with guarantees and a general security agreement across the structure.

Some operators hold commercial premises through a self-managed super fund. Where the building qualifies as business real property, an SMSF can own it under a limited recourse borrowing arrangement and lease it back to the trading company at market rent, with the asset held on a bare (custodian) trust. Gearing is lower under these rules and the detail is specific. The finance is ours to arrange, your accountant confirms the tax and entity detail, and a licensed SMSF adviser signs off the fund side where one is used.

The lender's checklist

Business financials and stability across 2 to 3 years, including sales mix, workshop utilisation, and parts contribution margin.
Serviceability tested with interest buffers, treatment of floorplan interest, and addbacks that reflect normalised earnings.
The property and its valuation, including land size, hardstand specification, drainage, wash bay compliance, workshop fit-out, cranes or pits, signage rights, and truck access for B-doubles.
Location and zoning, with weight to highway exposure, proximity to freight corridors, ports and industrial precincts, and correct zoning for dealership use.
Environmental risk such as historical contamination, underground tanks, oil interceptors and EPA compliance reports.
Deposit and equity position, including sources, and how you plan to leverage your equity in other assets if required.
Lease and occupancy, including an internal lease to your trading entity at market rent for serviceability clarity.

A specialist broker who knows how lenders view truck dealerships can shorten the path to a workable approval and reduce surprises at valuation.

One way this can play out

This is an illustrative scenario that shows the kind of situation we can assist with, and how the thinking might run.

Situation: A regional NSW dealer rents a 1.2 hectare site with highway frontage. The landlord offers the property for sale at $7,200,000.
Objectives: Secure long-term control of the yard and workshop, preserve cash for floorplan and marketing, and keep repayments within service and parts coverage.
Options weighed:
- Buy through a property trust with a commercial mortgage around 70 to 75 per cent LVR, rent set to market for serviceability.
- Target 80 per cent LVR using additional security from an existing warehouse, or leverage your equity in the director's home to reduce the cash deposit.
- Hold part of the ownership through an SMSF where the numbers suit, with the balance in a company or trust.
Structures considered: Principal and interest over 20 years for faster equity build, or an initial three-year interest only period to align with an OEM model change and yard resurfacing.
Adjacent finance: Asset finance for two heavy-vehicle hoists, a roller brake tester and a wheel aligner, kept off the property loan.
Indicative gearing: A mortgage in the $5,040,000 to $5,760,000 range at 70 to 80 per cent LVR, with repayments shaped to serviceability tested on normalised EBITDA.
How we would approach it: We would map the ranges, structures and repayments, then talk through the path that fits the dealership's cash flow and risk settings. The figures above are illustrative, not confirmed outcomes.

Other lending we can help with

Asset finance for workshop and yard equipment. Fund hoists, pits, cranes, scan tools, alignment machines, wash bay systems and yard lighting on dealership equipment finance, kept off the property loan.
Fit-out and refurbishment finance. Spread the cost of heavy-duty slabs, drainage upgrades, oil interceptors and a showroom refresh across a practical term.
Working capital. Support campaign activity, used-stock reconditioning and parts purchasing through seasonal cycles with working capital for a dealership.
Business overdraft. Manage timing between floorplan settlements, trade-ins and retail deliveries without straining cash.
Refinancing and debt consolidation. Reset mismatched facilities, simplify covenants and improve interest costs where the profile supports it.
Construction and yard upgrades. Fund new hardstand, canopy extensions, additional service bays or a parts mezzanine with staged drawdowns.
Business or premises acquisition finance. Back buying in, buying out a partner, or securing a neighbouring lot to expand display capacity.

Owning the premises can free equity over time, and a refinance can consolidate facilities and improve headroom for growth.

Talk to a truck dealership finance specialist

Ardent Capital Group is a specialist in commercial mortgages for truck dealerships. We arrange and structure finance around how you intend to hold the property and how your dealership occupies it. Our team services Sydney, Melbourne, Brisbane, Gold Coast, Perth, Adelaide, Canberra and surrounding metro and regional areas. We have helped facilitate over $500M in funding over a decade for over 1,000 borrowers. If you want clear answers and a path to optimal financial outcomes, talk to us.

Questions we're often asked

What deposit do I need to buy a truck dealership property? Most purchases sit at 65 to 80 per cent LVR, which means a 20 to 35 per cent deposit. Higher gearing can be possible with additional security or a strong owner-occupier profile.

Can my SMSF buy the dealership premises and lease it to my trading company? Commercial premises generally meet business real property rules, so an SMSF can hold the asset and lease it back at market rent. Gearing is usually lower and the rules are strict, so your accountant should confirm the detail before you proceed.

How do lenders treat floorplan finance in the mortgage assessment? Floorplan sits outside the property security, but lenders will include floorplan interest and any recourse in serviceability testing to ensure cash flow covers both facilities.

Will environmental factors affect the valuation and approval? Yes. Wash bay design, oil interceptors, any underground tanks, drainage and historical use are reviewed. A clean environmental report and compliant infrastructure support both valuation and credit appetite.

Can I include workshop fit-out costs in the property loan? Some fit-out can be included, especially fixed improvements like slabs and drainage. Movable equipment such as hoists, testers and scan tools are better placed under asset finance to keep the mortgage clean.

What term and repayment profile suits a dealership? Many owners choose 20 to 25 years principal and interest for steady equity build, or an initial interest only period to align with OEM changeovers, facility upgrades or growth campaigns.

Can regional locations achieve the same LVR as metro sites? Strong regional sites with highway exposure and transport demand can achieve similar LVRs, subject to valuation evidence and depth of buyer demand.

Written by

Nick Chong

Managing Director, M.AppFin, Dip. Mortgage Mgmt

Nick holds a Bachelor of Agricultural Economics, a Master of Applied Finance and an Advanced Diploma in Financial Planning. He founded Ardent Capital in 2016 after more than a decade in financial planning and mortgage broking. For the past ten years he has led a team of finance specialists, mortgage advisers, brokers and credit analysts, all working to secure optimal outcomes for clients and always acting in their best interests. The team brings both a qualitative and a quantitative approach to every deal.