Used truck finance can be arranged directly through a bank or through a truck finance broker. The better option depends on the business, the truck being purchased, the documentation available and how closely the application fits the lender's criteria.

A bank assesses the application against its own commercial vehicle finance products and lending policy. A broker can compare lenders with different requirements around used truck age, kilometres, ABN history, low doc applications, private sales and credit profile.

The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders. TAFS uses an internal credit team to assess applications before making a formal lender submission.

For businesses buying a used truck, lender selection can be particularly important because the age, condition, purchase method and value of the vehicle can all affect which finance options are available.

This guide compares using a truck finance broker with applying directly for a bank truck loan when purchasing a used commercial vehicle in Australia.

Should I Use a Broker or a Bank for Used Truck Finance?

Either can be suitable.

A bank can make sense for an established business with strong financials, a straightforward truck purchase and an existing banking relationship.

A truck finance broker can be useful when you want to compare multiple lenders or when the transaction involves factors such as:

• An older used truck
• Higher kilometres
• A private seller
• An auction purchase
• A newer ABN
• Low doc finance
• Previous credit issues
• Existing commercial finance
• A trade-in
• A more specialised vehicle

The key difference is lender access.

When you apply directly to a bank, that bank assesses the transaction against its own credit and asset criteria.

When you use a broker, the application can be assessed across lenders with different requirements before the formal application is made.

Used Truck Finance Broker vs Bank

Neither option is automatically better.

The right choice depends on the business and the truck.

How Does a Bank Loan for a Used Truck Work?

When you approach a bank directly, the bank assesses the truck finance application using its own lending criteria.

The bank may consider:

• ABN and trading history
• Business income
• Financial statements
• Business Activity Statements
• Tax returns
• Business bank statements
• Existing finance commitments
• Credit history
• Truck purchase price
• Truck age
• Truck kilometres
• Market value
• Deposit or trade-in
• Repayment capacity

If the application meets the bank's requirements, the bank can provide a commercial vehicle loan or asset finance structure.

For an established business with strong financial information and a truck that fits the bank's asset criteria, applying directly can be straightforward.

The limitation is that you are assessing one lender's option.

If the bank is not comfortable with the truck's age, the business's documentation or another part of the transaction, you may need to look elsewhere.

How Does a Truck Finance Broker Work?

A truck finance broker assesses the business and proposed truck purchase before determining which lenders may suit the transaction.

At TAFS, the assessment can include:

• ABN history
• Transport experience
• Business income
• Recent bank statements
• Existing finance
• Credit profile
• Truck age
• Truck kilometres
• Purchase price
• Seller type
• Deposit or trade-in

The internal credit team can then compare the application against suitable lender criteria.

TAFS has access to more than 80 lenders, including bank and non-bank options.

Once a suitable option has been selected, the formal application is made to that lender.

Why Used Trucks Can Require More Lender Comparison

A new truck generally gives lenders a straightforward asset to assess.

Used trucks can vary significantly.

Two trucks with the same purchase price might have completely different lender options because of differences in:

• Age
• Kilometres
• Condition
• Make and model
• Service history
• Market value
• Expected working life
• Seller
• Intended use

Lenders can also have different maximum asset ages at the end of the finance term.

For example, one lender might be comfortable financing a particular used prime mover over five years while another may offer a shorter term because of the truck's age.

This is why used truck finance is not only about finding the lowest advertised interest rate.

The lender first needs to be comfortable financing the truck itself.

What Do Lenders Look at When Financing a Used Truck?

The lender assesses both the business and the vehicle.

Truck Age

The year of manufacture can affect:

• Available lenders
• Maximum finance term
• Deposit requirements
• Valuation requirements

Older does not automatically mean unfinanceable.

It may simply change which lenders and structures are available.

Kilometres

Kilometres help the lender understand how heavily the truck has already been used.

A higher-kilometre truck may still be financeable when its value and condition support the transaction.

Purchase Price

The lender will consider whether the price appears reasonable for the asset.

A truck purchased materially above market value may require additional explanation or valuation.

Condition

The lender may consider:

• General condition
• Service history
• Mechanical condition
• Remaining working life

Some transactions may require an inspection.

Make and Model

Established truck brands with a clear resale market can be easier for a lender to value.

Specialised vehicles can also be financed, but the lender may need additional information about the asset and its intended use.

Business Use

The lender needs to understand what the truck will do.

This might include:

• Interstate linehaul
• Metro freight
• Civil construction
• Tipper work
• Refrigerated transport
• Courier work
• Waste transport
• Agricultural work
• Specialist haulage

The truck should make sense for the work and expected business income.

Is a Bank Better for an Established Business Buying a Used Truck?

It can be.

A bank may suit a business that has:

• Several years of trading history
• Strong financial statements
• Consistent bank statement income
• Good existing repayment history
• An established relationship with the bank
• A straightforward used truck purchase
• A vehicle that fits the bank's age requirements

Even in that situation, it can still be worth comparing the complete finance structure.

Look at:

• Interest rate
• Monthly repayment
• Finance term
• Balloon
• Deposit
• Total estimated amount repayable
• Early payout conditions

The bank rate is only one part of the decision.

When Does a Truck Finance Broker Make Sense?

A broker can be particularly useful when the used truck transaction needs more lender flexibility.

That may include:

The Truck Is Older

Different lenders have different policies around vehicle age.

A broker can compare those criteria before deciding where the application should be submitted.

The Truck Has Higher Kilometres

Higher kilometres do not automatically prevent truck finance.

The available options will depend on the vehicle, its condition, purchase price and lender.

You're Buying Privately

Private-sale finance requires additional seller and vehicle checks.

Selected lenders are comfortable with these transactions.

You're Buying at Auction

Auction purchases often have short settlement timeframes.

Having the finance position assessed before bidding can help.

Your ABN Is Newer

Selected lenders can consider newer businesses where the applicant has relevant industry experience and a clear source of work.

You Need Low Doc Finance

Selected lenders can assess commercial vehicle finance using alternative documentation instead of complete financial statements.

Your Credit Position Needs More Explanation

Lenders have different approaches to previous credit issues.

A broker can assess the circumstances before selecting a lender.

Can You Finance an Older Used Truck?

Yes. Older trucks can be financed through selected lenders.

The lender may assess:

• Year of manufacture
• Kilometres
• Purchase price
• Condition
• Market value
• Expected working life
• Finance term
• Deposit
• Applicant strength

The available finance term may become shorter as the truck gets older.

This matters because the term affects the repayment.

A shorter term means the principal is repaid faster, which can increase the regular payment.

When comparing an older truck with a newer one, consider both the purchase price and the finance structure.

Is a Cheap Older Truck Always Easier to Finance?

No.

A lower purchase price can reduce the amount being borrowed, but the lender still needs to be comfortable with the truck as security.

For example, a very old prime mover might cost considerably less than a newer vehicle but have:

• Fewer available lenders
• A shorter maximum finance term
• Higher expected maintenance costs
• A greater likelihood of requiring an inspection
• Lower expected future value

Buying used can be a strong commercial decision, but price should be considered alongside condition and remaining working life.

What Should You Check Before Buying a Used Truck?

Before committing to a used truck, consider:

• Purchase price
• Market value
• Current kilometres
• Service history
• Mechanical condition
• Tyres
• Registration
• Major repairs completed
• Major repairs likely to be required
• Remaining working life
• Fuel consumption
• Insurance cost
• Expected downtime
• Finance term available

The cheapest truck on the day is not necessarily the lowest-cost truck to own.

Finance repayments should be considered alongside maintenance and operating costs.

Can You Finance a Used Prime Mover?

Yes.

Used prime mover finance is available through selected lenders.

A lender may consider:

• Prime mover age
• Kilometres
• Make and model
• Purchase price
• Condition
• Type of work
• Expected annual kilometres
• Business income
• Existing truck finance

For an owner-operator, the lender may also want to understand the work source and how the truck will generate income.

Can You Finance a Used Rigid Truck?

Yes.

Used rigid trucks can be financed for purposes including:

• Metro freight
• Courier work
• Refrigerated transport
• Furniture transport
• Construction
• Trade work
• General delivery

The lender assesses the business and truck in the same way as other commercial vehicle finance applications.

The body type can also affect value and lender assessment.

Can You Finance a Used Tipper?

Yes.

Used tipper finance can be available for:

• Civil contractors
• Earthmoving businesses
• Owner-drivers
• Quarry work
• Landscaping
• Construction transport

The lender may consider both the truck and body.

The work available to the business can also support the application.

Can You Finance a Truck Bought From a Private Seller?

Yes.

Selected lenders finance used trucks purchased privately.

Private-sale truck finance can require additional checks compared with a dealer purchase.

These can include:

• Seller identification
• Proof of ownership
• VIN
• Registration
• Purchase price
• Existing finance or security
• Vehicle condition
• Market value

The aim is to confirm that the seller owns the truck and that the lender will receive suitable security over the asset.

TAFS can coordinate these requirements between the buyer, seller and lender.

Can You Finance a Used Truck Bought at Auction?

Yes.

Selected lenders consider auction purchases.

Before bidding, it can help to complete an initial finance assessment.

This can give you an idea of:

• Approximate finance amount
• Deposit requirement
• Suitable truck age
• Expected finance term
• Potential repayment

Final approval will depend on the truck actually purchased.

When setting your bidding limit, also consider:

• Buyer's premium
• GST where applicable
• Transport
• Registration
• Insurance
• Servicing
• Immediate repairs

The hammer price is not always the complete cost of getting the truck on the road.

Can a New ABN Finance a Used Truck?

Potentially.

Selected lenders consider used truck finance for newer businesses.

Where trading history is limited, the lender may consider:

• Previous transport experience
• Current contracts
• Work source
• Personal credit profile
• Bank statements
• Available savings
• Deposit
• Truck value

A used truck can reduce the amount a new owner-operator needs to borrow compared with purchasing new.

The lender will still want confidence that the vehicle is suitable for the work and that the business can manage both the repayment and operating expenses.

Can Sole Traders Get Used Truck Finance?

Yes.

Sole traders can apply for commercial vehicle finance.

The lender may assess:

• ABN history
• Industry experience
• Business income
• Bank statements
• Credit position
• Current contracts
• Existing debts
• Truck value
• Deposit or trade-in

Complete financial statements are not always required.

Selected low doc lenders can use alternative supporting information depending on the application.

What Is Low Doc Used Truck Finance?

Low doc truck finance allows eligible businesses to apply without always supplying complete financial statements and tax returns.

Instead, the lender may use:

• Business bank statements
• ABN details
• Credit information
• Transport experience
• Current work
• Contracts
• Existing commitments
• Truck information

Low doc does not mean no assessment.

The lender still needs to understand the business, income and proposed transaction.

Can You Get Used Truck Finance With Credit Issues?

Potentially.

Previous credit issues do not automatically rule out every lender.

The available options will depend on factors such as:

• Type of credit issue
• When it occurred
• Whether defaults have been paid
• Current repayment conduct
• Deposit
• Business income
• Truck value
• Existing debts

Different lenders can assess these circumstances differently.

TAFS reviews the credit position before making the formal lender submission. TAFS starts with a soft credit check and internal assessment before submitting one formal application to the selected lender.

Does Using a Broker Mean Applying to Lots of Lenders?

Not through the TAFS process.

TAFS begins with a soft credit check and internal credit assessment.

The scenario is reviewed before the formal lender application is made.

Once the business selects a suitable option, the formal application is submitted to the chosen lender.

This is different from making separate applications to several lenders without knowing whether their policies suit the truck or business.

What Is the Main Finance Structure for a Used Truck?

The main truck finance structure TAFS arranges is a chattel mortgage.

Under a chattel mortgage:

• The business owns the truck from settlement
• The lender registers a security interest over the truck
• The finance is repaid over an agreed term
• A deposit may be included
• A trade-in may contribute toward the purchase
• A balloon may be available
• The lender's security is removed once the finance is repaid

A balloon payment leaves an agreed amount until the end of the finance term.

This can reduce regular repayments but creates a larger final amount.

The business may be able to claim eligible GST, interest and depreciation amounts depending on its circumstances. Speak with your accountant regarding the tax treatment that applies.

Does a Used Truck Need a Deposit?

Not every application requires a deposit.

The lender may consider:

• Truck age
• Purchase price
• Market value
• Business history
• Credit position
• Documentation
• Finance amount

A deposit can:

• Reduce the amount financed
• Reduce repayments
• Improve the loan-to-value position

A trade-in may also provide equity toward the purchase.

Using a large deposit should still be considered against the amount of working capital the business needs after settlement.

Can You Use a Trade-In?

Yes.

If you are replacing an existing truck, its trade-in value can potentially contribute toward the new purchase.

Where there is existing finance, the current facility may need to be paid out first.

For example:

Trade-in value: $70,000
Existing loan payout: $40,000
Potential remaining equity: $30,000

That remaining equity may contribute toward the replacement truck, subject to the final transaction.

The actual figures will depend on the dealer offer and existing finance balance.

What Documents Are Needed for Used Truck Finance?

The documents depend on the business and lender.

For an initial assessment, you may need:

• Driver's licence
• ABN details
• Business bank statements
• Existing finance details
• Information about current work
• Transport experience
• Assets and liabilities

Depending on the application, the lender may also request:

• BAS
• Financial statements
• Tax returns
• Contracts
• Accountant information
• Existing finance statements

Once the truck has been selected, you may need:

• Dealer invoice
• Make and model
• Year
• VIN
• Registration
• Kilometres
• Private seller details
• Auction invoice
• Inspection or valuation

You do not necessarily need the final truck invoice before beginning the initial finance assessment.

Broker vs Bank for a Dealer Used Truck

A dealer transaction is generally more straightforward because the dealer provides formal vehicle and sale information.

A bank can suit the purchase where:

• The business meets the bank's credit criteria
• The truck meets its asset policy
• Documentation is available
• The borrower is comfortable with the offer

A broker can still be useful where the buyer wants to compare:

• Interest rates
• Terms
• Balloon options
• Deposit requirements
• Different lender asset-age policies

Broker vs Bank for a Private-Sale Truck

A private sale can make lender selection more important because lenders have different approaches to these transactions.

The lender may need to verify:

• Seller
• Ownership
• Vehicle
• Value
• Existing security
• Settlement process

A broker can identify lenders that consider private sales before the formal application is made.

Broker vs Bank for an Older Truck

The older the truck, the more important the lender's asset criteria can become.

A bank may still finance the truck if it falls within its policy.

A broker can compare lenders with different rules around:

• Maximum vehicle age
• Maximum age at end of term
• Kilometres
• Loan term
• Inspection requirements
• Deposit

The best lender for a three-year-old truck may not be the best lender for a fifteen-year-old truck.

What Should You Compare Besides the Interest Rate?

When comparing truck financing, look at the entire structure.

Consider:

1. Purchase price
2. Amount financed
3. Deposit
4. Interest rate
5. Regular repayment
6. Finance term
7. Balloon payment
8. Establishment costs
9. Total estimated amount repayable
10. Early payout conditions
11. Truck age requirements
12. Documentation
13. Approval conditions

A lower monthly repayment does not automatically mean cheaper finance.

It may come from:

• A longer term
• A larger balloon
• A larger deposit

The right structure should make sense for both the truck and the business.

How Fast Can Used Truck Finance Be Approved?

TAFS can arrange approvals in as little as 24 hours for straightforward applications once the required information is available.

Used truck applications can take longer when they involve:

• Older vehicles
• Private sellers
• Newer businesses
• Credit issues
• Low doc applications
• Asset inspections
• Valuations
• More complex ownership structures

Approval and settlement are also different stages.

A lender may approve the business quickly but still need to complete vehicle or seller checks before settlement.

How the TAFS Used Truck Finance Process Works

1. Initial Assessment

TAFS reviews:

• Business history
• ABN age
• Transport experience
• Available documentation
• Credit position
• Proposed used truck purchase

2. Soft Credit Check

The initial assessment begins with a soft credit check that leaves no mark on the applicant's credit file.

3. Internal Credit Review

The TAFS credit team assesses the application and identifies suitable lender options.

4. Compare Lenders

TAFS has access to more than 80 bank and non-bank lenders.

The application can be assessed based on:

• Truck age
• Kilometres
• Seller type
• ABN age
• Documentation
• Credit position
• Finance amount

5. Review the Finance Structure

Before proceeding, review:

• Amount financed
• Interest rate
• Deposit
• Term
• Repayment
• Balloon

6. Submit One Formal Application

The formal application is submitted to the selected lender.

7. Approval and Settlement

TAFS coordinates the lender requirements and settlement with the dealer, private seller or other approved seller.

Questions to Ask a Bank Before Financing a Used Truck

Ask:

1. What is the maximum truck age you will finance?
2. Is there a maximum age at the end of the loan?
3. Do you have kilometre restrictions?
4. Can you finance a private-sale truck?
5. Can you finance auction purchases?
6. Is an inspection required?
7. Is a valuation required?
8. What documents do you need?
9. Is low doc finance available?
10. Is a deposit required?
11. What finance term is available?
12. Can a balloon be included?
13. What is the interest rate?
14. What is the regular repayment?
15. What is the total estimated amount repayable?

Questions to Ask a Truck Finance Broker

Ask:

1. How many lenders can you access?
2. Do you work with bank and non-bank lenders?
3. Do you regularly finance used commercial vehicles?
4. Can you finance this truck's age?
5. Do you assist with higher-kilometre vehicles?
6. Can you arrange private-sale finance?
7. Can you finance auction purchases?
8. Do you offer a soft credit check first?
9. Do you have an internal credit team?
10. Are low doc options available?
11. Can you assist newer ABNs?
12. What deposit is required?
13. What term is available?
14. Is a balloon suitable?
15. What is the total estimated finance cost?
16. Who manages the settlement process?

Frequently Asked Questions

Should I Use a Broker or a Bank for Used Truck Finance?

It depends on the business and truck.

A bank can suit an established business purchasing a used truck that fits the bank's criteria.

A truck finance broker can be useful when you want to compare several lenders or when the truck is older, purchased privately, bought at auction or requires a more tailored finance assessment.

Is a Truck Finance Broker Better for an Older Used Truck?

A broker can compare lenders with different vehicle age and condition requirements.

This can provide more options than relying on one lender's asset policy.

Are Bank Truck Loans Cheaper?

Not necessarily.

The available rate and overall cost depend on the business, truck, finance term, deposit, balloon and lender.

Compare the complete finance structure rather than assuming one type of provider is always cheaper.

Can a Bank Finance a Used Truck?

Yes.

Banks provide finance for eligible used commercial vehicles that meet their credit and asset requirements.

Can a Broker Finance Used Trucks?

Yes.

TAFS can compare suitable lenders for used truck purchases. Truck age, kilometres, condition and market value will affect the available options.

Can I Finance an Older Truck?

Potentially.

Selected lenders finance older trucks, although the vehicle's age can affect the available lender, term and deposit.

Can I Finance a High-Kilometre Truck?

Potentially.

Kilometres are one part of the vehicle assessment. The lender can also consider age, condition, purchase price and market value.

Can I Finance a Truck From a Private Seller?

Yes.

Selected lenders provide private-sale truck finance. Additional seller, ownership and vehicle checks are generally required before settlement.

Can I Finance a Used Truck From an Auction?

Yes.

Selected lenders consider auction purchases. Pre-approval may also be available before bidding.

Can a New ABN Finance a Used Truck?

Potentially.

Selected lenders consider newer businesses based on factors such as industry experience, expected work, bank statements, credit position and the truck being purchased.

Can a Sole Trader Get Used Truck Finance?

Yes.

Sole traders can apply for commercial vehicle finance, including low doc options through selected lenders.

Do I Need Financial Statements?

Not always.

Selected lenders provide low doc truck finance using alternative supporting information such as bank statements, ABN details, business activity and industry experience.

Does Using TAFS Mean My Application Goes to Multiple Lenders?

No.

TAFS begins with a soft credit check and internal assessment before making one formal application to the selected lender.

How Quickly Can Used Truck Finance Be Approved?

Straightforward applications can be approved in as little as 24 hours once the required information has been provided.

Private-sale transactions, older trucks, valuations and more complex applications can take longer.

Compare Used Truck Finance With TAFS

Buying used can be a practical way to put the right truck into the business without taking on the cost of a brand-new vehicle.

The important part is finding finance that suits both the business and the truck.

TAFS can assess the vehicle age, kilometres, seller, ABN history, documentation and overall application before comparing suitable truck finance options through access to more than 80 lenders.

Contact The Asset Finance Shop or apply online at www.tafs.com.au.

The Asset Finance Shop (TAFS) is a commercial asset finance brokerage based in Sydney.
Information on this page is general in nature and doesn't take your personal circumstances into account. Speak to a TAFS broker for options tailored to your business, and to your accountant regarding tax treatment.