Buying your first used truck?

A used truck can be an attractive option for a first-time owner-operator or business moving into its first commercial vehicle.

The lower purchase price compared with a new truck may reduce the amount of finance required, but the lender will still want to understand the asset and the business behind it.

Lenders can look at previous industry experience, trading history, credit profile, existing work, expected truck use, purchase price, any deposit or trade-in, and the age and condition of the truck.

For newer businesses, experience in transport or the relevant industry can become particularly important. TAFS works with lenders that assess used commercial vehicles differently, allowing us to look for options suited to the complete application.

Replacing an ageing vehicle?

A used truck can be a practical replacement for an ageing vehicle without requiring the capital outlay of a brand-new truck.

This can suit businesses that need another truck quickly, want to keep purchase costs lower, have a preferred model that is no longer available new, need a specific body or configuration, or are replacing a truck that has become unreliable.

Where the old truck still has finance owing, the payout and expected sale or trade-in value need to be considered as part of the replacement transaction.

TAFS can review the existing finance alongside the used truck purchase.

Expanding the fleet?

Used trucks can also help businesses grow fleet capacity without purchasing every vehicle new. For transport and commercial operators, this can allow more capital to remain available for fuel, wages, insurance, maintenance, trailers, equipment and working capital.

The lender will still assess whether the additional repayments fit within the business. Where several used trucks are being purchased, each vehicle may need to meet the relevant lender's asset requirements.

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Kilometres matter, but they aren't the only factor

High kilometres do not automatically mean a used truck cannot be financed. Commercial trucks are built to work, and a well-maintained vehicle with higher kilometres can still have significant useful life remaining.

Lenders may consider kilometres alongside truck age, make and model, service history, overall condition, the type of work performed, purchase price and the proposed finance term.

A truck used for long-haul transport may accumulate kilometres differently from a vehicle used for local delivery or site work. The wider condition and commercial suitability of the truck can therefore be just as important as the odometer reading alone.

Service history and condition

A complete service history can help demonstrate how a used truck has been maintained. This can become more important as the vehicle gets older or the kilometres increase.

Depending on the lender and transaction, useful information can include service records, maintenance history, recent repairs, inspection reports, vehicle photos and dealer condition reports.

Not every application will require all of this information. However, having clear documentation available can help where the asset falls outside standard new or near-new vehicle criteria.