Quick answer
Truck finance funds commercial vehicles such as light trucks, tippers, rigid trucks, prime movers and trailers, usually with the vehicle as security under a chattel mortgage, lease or hire purchase. Lenders consider the truck's age, type and resale market, the operator's experience and contracts, and the business's trading history. New operators can find finance, but experience and committed work make a significant difference.
Key points
- The truck usually secures the loan, registered on the PPSR.
- Operator experience and contracted work strongly influence approval.
- Older trucks can be financed, but age limits and deposits vary.
- Running costs and downtime must fit inside the cash flow alongside repayments.
At a glance
- Vehicles
- Light trucks, rigids, tippers, prime movers, trailers
- Structures
- Chattel mortgage, finance lease, hire purchase
- Security
- The truck or trailer, sometimes with additional security
- Key factors
- Truck age, operator experience, contracts and trading history
Our review: truck finance at a glance
What works well
- Truck acts as security, often without property
- Terms can match the vehicle's working life
- Balloons can lower repayments
- Supports growth into bigger contracts
What to watch
- Heavy vehicles carry high running and maintenance costs
- Downtime directly affects ability to repay
- Specialised trailers and older trucks can be harder to fund
- Balloons can exceed resale value on hard-worked trucks
Usually suits
- Owner-drivers with experience and steady contracts
- Transport and logistics businesses growing their fleet
- Construction, earthmoving and agricultural operators
Probably look elsewhere if
- Work is uncertain or not yet contracted
- Running costs have not been budgeted
- A balloon would leave you exposed at the end of the term
A truck is not a car with a bigger engine. It is a small business on wheels: it earns only when it is working, it costs a great deal to run and maintain, and its value depends on how hard it has been used. Lenders know this, which is why truck finance is assessed on the operator and the work as much as on the vehicle.
How truck finance is structured
Most truck finance is a chattel mortgage, a finance lease or hire purchase, with the truck or trailer as security registered on the Personal Property Securities Register. Terms are usually set against the vehicle’s expected working life, and balloon or residual payments are common to keep repayments manageable. Prime movers and trailers can be financed together or separately.
What lenders weigh
| Factor | Why it matters |
|---|---|
| Operator experience | Proven drivers and operators are more likely to keep the truck earning |
| Contracts and customers | Committed work shows where repayments will come from |
| Truck age and type | Age at the end of the term, make and resale market all matter |
| Business history | Trading record, bank statements and credit history |
| Deposit or trade-in | Reduces risk and the amount financed |
New owner-drivers are not shut out, but expect lenders to ask more about experience and work lined up. A letter of engagement from a transport company can carry real weight.
Count the whole cost of the truck
The repayment is only one line in a truck’s budget. Fuel, tyres, registration, insurance, servicing, compliance and downtime all come out of the same revenue. A balloon that lowers repayments today needs to be paid when the truck is older and worth less. Before committing, estimate monthly earnings in a slow month and subtract every running cost. If the remainder does not comfortably cover the repayment, the deal is too tight. The repayment coverage calculator helps test the numbers.
Used trucks and trailers
Used trucks can be good value and are widely financed, but lenders apply age limits and may ask for a larger deposit or shorter term. Get a mechanical inspection, check the service history and run a PPSR search to make sure no finance is owing. Our guide to financing used equipment covers the checks in more detail. For compliance and safety rules, the National Heavy Vehicle Regulator is the official source.
Growing a fleet
For operators adding trucks, lenders look at fleet utilisation, existing commitments and the contracts supporting expansion. Spreading finance across several lenders can make it harder to manage; consolidating can simplify reporting. Our transport and logistics industry guide explains how lenders read transport businesses.
An illustrative example
A made-up owner-driver with eight years driving for a transport company buys a used prime mover and goes contract to the same company. A letter confirming the ongoing work accompanies the application. The truck is financed with a chattel mortgage over five years with a moderate balloon.
Before signing, the driver builds a monthly budget: contract revenue in a quiet month, minus fuel, tyres, registration, insurance, servicing and a downtime allowance. The repayment fits with room to spare. The balloon is set below what similar trucks of that age sell for, so the driver will not owe more than the truck is worth when the term ends.
Questions to ask before signing
- What is the total of all repayments plus the balloon?
- Is there an age limit on the truck at the end of the term?
- What insurance must be held, and with what interests noted?
- Can the truck be traded or upgraded before the term ends, and at what cost?
- Are trailers included or financed separately?
Financing a truck or trailer
If you have the experience and the work to keep a truck earning, finance can be the way to get it on the road without draining cash. To explore options, make one enquiry. There is no credit check when you first enquire, a real person reviews it and your details are not sent to a list of lenders. Tell us the vehicle type, its age, the approximate price and the work it will do. Contracted work is worth mentioning in your enquiry, because it often decides the answer.
Frequently asked questions
Can I get truck finance as a new owner-driver?
It is possible, particularly if you have driving experience in the industry, a deposit and contracted work. Lenders weigh experience heavily because a truck only earns when it is working.
How old can a truck be to get finance?
Each lender sets its own age limits and terms for older vehicles. Older trucks may need a larger deposit or a shorter term. Ask about the age at the end of the term, not just today.
Can trailers be financed separately?
Yes. Trailers are often financed separately or together with the prime mover, depending on the lender and the deal.
What documents do I need for truck finance?
Usually ID, licence details, ABN information, bank statements and, for larger or established businesses, financial statements and tax returns. Contracts or letters of engagement help, especially for new operators.
Sources and further reading
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