Finance scenarios for used trucks in Australia: The complete buying and financing guide 2025

Discover how to finance used trucks in Australia with expert tips on loan terms, deposits, lender expectations, and risk management.

Key takeaways

• Used truck prices in Australia: Range from $25,000 to $200,000+, depending on make, model, kilometres, condition, and configuration (e.g. prime mover, rigid, tipper, tray).
• Finance terms: Typical loan terms are 3 to 5 years, with interest rates between 6.5% and 15% p.a., depending on age of truck, borrower profile, and documentation provided.
• Loan amounts: Low-doc finance is often available up to $150,000 for ABN holders trading over 12 months.
• Deposit expectations: A 10% to 30% deposit may be required, especially if the truck is older than 10 years or sourced from a private seller.
• Recommended structure: Chattel mortgage is the most popular and tax-effective for business buyers, offering GST benefits and ownership from day one.
• Truck age matters: Vehicles older than 10 years often attract shorter loan terms, higher rates, and stricter lender scrutiny.
• Broker support: A good broker can pre-vet the truck, help package your application, negotiate better rates, and flag lenders who accept older assets or private sales.
• Finance watch-outs: PPSR checks, inflated prices, hidden damage, or weak documentation can all derail loan approval or lead to bad debt decisions.
• Finance scenarios: Loan terms, deposits, and rates vary by truck price, higher price means longer terms, lower deposits, and better rates.
• Loan types: Chattel mortgage is best for long-term ownership and tax benefits; lease suits short-term or seasonal use.
  

Introduction: Why finance a used truck?

Used trucks are an essential asset for many Australian businesses, from logistics operators and construction contractors to farmers and delivery fleets. Buying a used truck can significantly reduce upfront costs while still delivering long-term value, particularly with reliable makes.

With new heavy vehicle prices soaring past $300,000 for prime movers and $120,000+ for rigids and tippers, used trucks are a practical choice for many buyers. Financing that purchase spreads the cost over time, protects cash flow, and often delivers tax benefits, but it comes with more complexity than buying new.

In this guide, we'll walk you through the key finance scenarios for used trucks in Australia, including loan types, price ranges, approval criteria, broker support, lender expectations, risks, and FAQs.

Used truck price brackets and finance structures

Different truck values require different finance approaches. Here's how typical finance scenarios break down by truck value:

For trucks under $50,000

Commonly purchased for: Local deliveries, small contractors, farm use.

• Loan structure: Chattel mortgage
• Loan term: 3 years
• Deposit: 15% to 30% often required
• Interest rate: 9% to 11%
• Low-doc: Possible up to $50,000 with strong trading history
  

For trucks $50,000 to $120,000

Typical for: Mid-sized operations, refrigerated transport, building trades.

• Loan structure: Chattel mortgage or loan with balloon
• Loan term: 4 to 5 years
• Deposit: 10%+ standard
• Balloon: Up to 30% depending on lender and truck age
• Interest rate: 8% to 10.5%
  

For trucks over $120,000

Suited for: Large logistics businesses, long-haul contractors, near-new units.

• Loan structure: Chattel mortgage with balloon
• Loan term: 5 years
• Deposit: May be optional for strong financials
• Balloon: 20% to 40%
• Interest rate: 7.5% to 9.5% for strong credit

What lenders look for in used truck finance approval

When financing used trucks, lenders perform a detailed risk assessment. Here’s what matters:

1. Age and condition of the truck

• 10 years and under: Easier to finance, full-term loans available
• 11–15 years: Limited lenders, higher deposits
• 15+ years: Niche lenders only; higher risk, short terms
• Condition factors: Service history, odometer reading, major rebuilds, and attachments
  
  

2. Borrower’s business profile

• ABN trading history: Minimum 12 months preferred
• GST registration: Improves loan options
• Industry type: Lenders favour transport, civil, construction, or logistics
  
  

3. Credit score and financials

• Business and director credit reports are reviewed
• Low-doc approval for loans up to $150,000 often requires clean credit
• Full-doc loans may need BAS, tax returns, bank statements
  
  

4. Purchase source

• Dealer sales: Easier to finance
• Private sales: Require additional verification, invoice, photos, PPSR

The role of a finance broker in used truck loans

Specialist finance brokers are crucial when it comes to structuring and securing finance for used trucks:

• Access niche lenders that accept older vehicles and private sales
• Pre-vet truck details to reduce loan rejection risks
• Package deals correctly for low-doc or full-doc submissions
• Negotiate better rates based on the borrower profile
• Assist with settlement including PPSR checks, seller verification, and invoicing
  
  

Working with a broker experienced in truck and transport equipment finance can drastically improve your approval speed and loan quality.

Key risks to avoid when financing used trucks

Used truck loans offer flexibility, but come with pitfalls. Here’s what to watch out for:

• PPSR encumbrances: Always check the truck isn’t under finance
• Overvalued listings: Ensure the truck is priced fairly with independent valuation
• Hidden defects: Get a pre-purchase inspection, especially for older units
• Incomplete documentation: Missing invoices or service history may delay or block finance
• Misaligned finance terms: Don't accept balloon structures you can’t afford to refinance
  

What to prepare before applying for truck finance

Preparing the right documents upfront can fast-track your approval:

Business documentation

• ABN (12+ months preferred)
• GST registration
• Business name and structure details
  
  

Financials

• 6 months of business bank statements
• BAS or tax returns (for full-doc deals)
• List of current loans or leases
  
  

Identity and credit

• Director ID or driver’s licence
• Recent credit report (if available)
• Notes on past defaults or arrangements
  
  

Truck details

• Make, model, year, VIN
• Seller invoice or signed quote
• Photos, odometer, service history
• PPSR certificate
  

Real-world finance scenarios for used trucks

Understanding how truck finance works at different price points can help you avoid overcapitalising or taking on more debt than your cash flow can handle. Here are three practical scenarios to help you set expectations based on the kind of truck you're buying and your financial profile.

Scenario 1 – Budget-friendly workhorse under $60,000

You're looking to buy a well-maintained used rigid truck, around 8–10 years old, for light commercial work. In this case:

• A deposit of 10%–20% may be required
• Most lenders will offer a 3–4 year term
• Interest rates typically fall between 9.5% and 11.5%
• Approval is possible with low-doc paperwork if your ABN has been trading for 12+ months
  
  

Scenario 2 – Mid-range fleet addition at $80,000–$120,000

If you're adding a newer medium-duty truck to your fleet, around 5–7 years old:

• A deposit may not be required if you have strong financials and business history
• Terms of 4–5 years are commonly available
• You may be eligible for a balloon payment structure of 20%–30% to ease monthly repayments
• Full-doc applications can secure better rates, typically between 8.5% and 10%
  
  

Scenario 3 – High-end prime mover over $150,000

For near-new heavy vehicles purchased through a dealer:

• Lenders may offer full 5-year terms with balloons up to 40%
• Interest rates can start around 7.5% depending on credit strength
• No deposit may be needed if you're asset-backed and have a clean credit profile
• Expect more paperwork for larger loan amounts, even if applying via a broker
  
  

These examples are intended to provide realistic expectations, but exact terms will vary based on truck age, condition, your financials, and lender policies.

Comparing loan types: Chattel mortgage vs. lease vs. rent-to-own

Choosing the right loan structure for your used truck is just as important as choosing the truck itself. Your decision will impact tax treatment, ownership rights, and long-term cash flow flexibility.

Chattel mortgage

This is the most popular and tax-efficient option for business-use vehicles.

• You own the truck from day one
• GST on the purchase price can often be claimed upfront (if registered)
• Interest and depreciation may be tax-deductible
• Balloon payments are available to reduce monthly repayments
• Most suited to buyers with stable businesses and clean credit
  
  

Lease or rent-to-own

These structures may suit newer businesses or seasonal operators who want to preserve cash flow.

• Ownership is only transferred at the end of the term (if at all)
• Monthly repayments may be higher than chattel mortgage
• May not be available for trucks older than 10 years
• Less tax-effective overall, but may offer flexibility for short-term use
  
  

Which should you choose?

If your business is GST-registered and intends to keep the truck long term, a chattel mortgage generally provides the best value. Leasing or rent-to-own may be considered where short-term access or off-balance-sheet treatment is more important.

FAQs: financing used trucks in Australia

Can I get truck finance with no deposit?

Yes, if the truck is under 10 years old and you have:

• Clean credit
• 2+ years ABN trading
• Strong financials
  
  

Otherwise, a 10–30% deposit may apply.

What’s the maximum loan term for a used truck?

Typically 5 years, but for trucks over 10 years old, the maximum term may reduce to 2–3 years.

Can I finance a used truck from a private seller?

Yes, but the lender will require:

• Clear invoice
• PPSR check
• Proof of ownership
• Photos and service records
  
  

Do balloon payments make sense for used trucks?

They can reduce repayments but require discipline. Ensure you:

• Understand the balloon amount
• Have a plan to refinance or pay it at term-end
  
  

What is low-doc truck finance?

 Low-doc finance allows ABN holders to get funding without full tax returns. You’ll need:

• 12+ months trading history
• GST registration preferred
• Clean credit
  
  

Are interest rates higher for used truck loans?

Yes, compared to new trucks. Expect rates from 7.5% to 11%, depending on:

• Truck age
• Your credit profile
• Whether it’s a dealer or private sale
  

Final thoughts

Financing a used truck in Australia can be a smart investment if you choose the right structure, work with an experienced broker, and prepare your documentation properly. With older assets, more scrutiny applies, but that doesn't mean funding isn’t available.

Whether you're an independent driver, a growing fleet operator, or a rural contractor, smart used truck finance can boost cash flow, preserve capital, and help scale your operations sustainably.

Always compare offers, understand your obligations, and don’t hesitate to seek broker support. In transport, your truck is your income, and getting the finance right is just as critical as getting the engine right.