Finance for buying a truck

A truck doesn’t make money parked in the yard. Every truck finance deal that works starts with the same question: what will this truck be doing on Monday morning, and who’s paying for it? Lenders ask it first, and so should you, because the answer decides which truck you can afford, how long the loan should run and how much cash you’ll need behind it.

Start with the work, not the truck

Before shopping for trucks, write down the work the new one will do:

• Who is the customer, and is there a contract, a subcontract arrangement or a history of regular loads?
• What does the work pay, per hour, per load or per tonne, and how much of that is left after fuel, tyres, maintenance and wages?
• How long is the work locked in? A three-year contract supports a different loan from a verbal promise.
• When do you get paid? Many freight and construction customers pay on 30-day or longer account terms.

That last point catches new operators out. A truck can be working flat out while the bank account goes backwards, because fuel, tolls and the driver’s wages are due weekly and the customer pays a month or more later. Lenders know this, and a plan that covers the gap reads far better than one that ignores it.

Specialist pages for owner-driver truckies and trucking companies cover how lenders view each type of operator.

New, used and the Euro VI line

From 1 November 2024, new heavy vehicle models approved for supply in Australia had to meet ADR 80/04, the emissions standard based on Euro VI. From 1 November 2025 the rule extended to existing models still being supplied, so every new heavy truck sold now meets it.

What that means for buyers:

• New trucks carry extra emissions equipment, which adds weight. The NHVR provides a Euro VI mass transfer allowance, letting compliant trucks shift up to 0.5 tonnes of the single steer axle limit onto the drive axle group, which helps protect payload.
• Late-model used trucks that meet Euro VI may hold their value well because they offer the same compliance at a lower price than new.
• Older pre-Euro VI trucks are cheaper to buy, and still widely financed, but lenders may want a shorter term, and some customers and sites increasingly prefer newer, cleaner fleets.

There’s no single right answer. A long-term contract on major sites might justify new. A start-up owner-driver might be better off with a sound late-model used truck and a smaller loan.

What does it cost to put a truck to work?

The purchase price is only the first cost. Lenders expect you to have budgeted for the rest.

Cost	What to know
Registration	Heavy vehicles over 4.5 tonnes pay registration charges set under a national model, varying with vehicle type and axle numbers
Insurance	Comprehensive cover is usually a condition of the finance; premiums can be funded separately
Tyres, servicing and repairs	Budget per kilometre, and more for older trucks
Fuel	The biggest running cost; fuel tax credits return part of the excise on eligible use
Body, tipper, crane or refrigeration unit	Often quoted separately and sometimes financed with the truck
Telematics and compliance	Electronic work diaries, GPS and maintenance records
Working capital	Fuel, wages and tolls until customers pay

Fuel tax credits are worth understanding before you size the loan. According to the ATO, heavy vehicles above 4.5 tonnes GVM used on public roads can generally claim credits on fuel, reduced by the road user charge. The road user charge has moved during 2026, so check the current figure rather than relying on last year’s numbers.

Already have a truck and a contract in mind? Tell us about the deal. A minute or so of your time, and your credit report isn’t pulled for an enquiry.

Matching finance to each part of the rig

What you’re buying	Finance that usually fits	Typical approach
Rigid truck or prime mover	Chattel mortgage, hire purchase or finance lease	Term matched to how long you’ll run it, optional balloon
Trailers	Separate chattel mortgage or lease	Often a longer term, since trailers tend to outlast prime movers
Bodies, cranes, tippers, fridge units	Included with the truck or separate equipment finance	Depends on whether the item can be valued separately
Insurance premiums	Insurance premium funding	Spreads the annual premium over monthly payments
Fuel, wages and the payment gap	Invoice finance or a business line of credit	Converts unpaid freight invoices into cash or gives a buffer to draw on

For tax, the ATO’s effective life tables set a capped life of 7.5 years for trucks over 3.5 tonnes GVM and 10 years for trailers over 4.5 tonnes, although many small businesses use the simplified pool instead. Ask your accountant which applies, because it affects how quickly the deductions arrive compared with your repayments.

Manufacturer finance arms such as Daimler Truck Financial Services and Volvo Financial Services compete with banks and specialist asset financiers on new trucks. Compare every offer on the total dollars you’ll pay over the term, including fees and the balloon.

Sizing the balloon and the term

A balloon lowers the monthly repayment but leaves a lump sum to clear at the end. For a truck, the safe ceiling is the price you’d realistically get for it at that point, given the kilometres your work will put on it. A linehaul prime mover clocking big distances will be worth much less after five years than a local rigid on short runs.

The term should end before the truck needs replacing or major work, and ideally before your contract does. If the contract is three years and the loan is five, have a clear idea of where the work comes from in years four and five. Our equipment finance calculator shows how term and balloon change the repayment.

Worked example: an owner-driver buys a tipper

An illustration only. An experienced driver who has worked for a quarry operator for eight years is offered a two-year subcontract carting material for a civil contractor in south-east Queensland, paid per hour with 30-day terms.

Item	Amount
Late-model used tipper, Euro VI compliant (including GST)	$210k
Registration, transfer and inspection	$12k
First-year insurance (premium funded monthly)	$14k
Working capital for six weeks of fuel, tyres and tolls	$25k
Total	$261k

The driver puts in a $20k deposit from savings. A specialist asset financier approves a chattel mortgage of $190k over four years with a balloon well below the tipper’s expected resale value, backed by the subcontract, the driver’s experience and an inspection report. The GST credit, claimed on the first BAS, rebuilds the cash buffer. The insurance is premium funded, while a modest overdraft-style facility handles fuel and tolls until the contractor’s first payment lands.

The driver’s bank had been encouraging but wanted twelve months of trading as a business before lending. The specialist financier was comfortable with the subcontract and the driver’s industry background.

Banks are worth asking, and here’s the backup

For established transport businesses, banks often offer the cheapest truck finance, and if yours offers terms that fit, that’s a good outcome. Where banks hesitate, such as for new owner-drivers, older trucks, past credit issues or tight timelines, manufacturer finance arms and specialist truck financiers are used to filling the gap. Our loan-type page on truck finance explains how those lenders assess applications.

Let’s get your truck working

A truck bought for the right work, with the running costs and the payment gap covered, pays its own way. Bought without that groundwork, even a good truck can strain a small business.

If you’d like help structuring yours, filling in our form is roughly a sixty-second job, and it leaves your credit rating alone. Your enquiry isn’t shopped around the market either. A person on our side reads about the truck and the work behind it, then picks up the phone to you. Honest figures on the rig, the contract and what you earn mean our first recommendation should fit the job.

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