Heavy truck finance is how most Australian transport and logistics businesses fund the purchase of prime movers, rigids, tippers and other heavy vehicles, spreading the cost over a set term rather than paying cash upfront. The right structure, rate and documentation path depend on the vehicle, the applicant's credit history and how the business wants the asset to sit on its books.
What Heavy Truck Finance Actually Covers
Heavy truck finance is a funding arrangement that lets a business acquire a prime mover, rigid, tipper or other heavy commercial vehicle without paying the full purchase price upfront. Loan amounts typically range from $20,000 to $10 million or more, covering everything from a single second-hand rigid to a fleet upgrade for an established transport operation. The vehicle usually secures the loan, which is one reason approvals can move faster than many business owners expect.
Common Finance Structures
Most heavy truck finance in Australia is arranged as a chattel mortgage, finance lease or commercial hire purchase, each with different implications for ownership timing, GST treatment and balance sheet reporting. A chattel mortgage is popular with GST-registered operators because ownership sits with the business from day one and interest costs may be deductible, while a lease can suit businesses wanting lower upfront costs or more predictable cash flow. Choosing the right structure depends on your accounting position, so it is worth discussing with your accountant alongside your broker.
How Rates and Terms Are Set
Lenders price heavy truck finance based on the age and type of vehicle, the loan term, the deposit or trade-in offered, and the strength of the applicant's credit and trading history. Rates start from 6.55% p.a. for well-qualified applicants and stronger assets, rising to around 15% p.a. for higher-risk profiles, with terms generally running from one to seven years. These figures are indicative only and subject to lender criteria, credit assessment, fees, individual circumstances and final approval.
Documentation and Deposit Options
Not every application needs a full financial package. Low-doc, lite-doc or no-doc arrangements may be available for eligible businesses seeking up to $500,000, often based on a signed declaration of financial position rather than full financials, while full-doc applications support loan amounts up to $10 million or more for larger fleet or asset purchases. No-deposit finance, or options funding up to 100% of the vehicle's value, can also help operators preserve working capital rather than tying it up in an upfront payment, subject to lender criteria and approval.
Why Timing Matters for Approval
Heavy vehicles are often needed to fill a contract, replace a breakdown or capitalise on a growth opportunity, so approval speed genuinely matters. Some eligible applications may receive a same-day pre-approval, with formal approval potentially following within 24 to 48 hours, subject to lender assessment, giving operators more confidence to negotiate with a dealer or private seller before finance is finalised. Having ABN, trading history and asset details ready in advance helps keep the process moving as quickly as possible, though timeframes will vary case by case.
The Value of Comparing Lenders
Heavy truck finance is not a one-size-fits-all product, and pricing, appetite for risk, and documentation requirements vary considerably between banks and non-bank lenders. As a broker, Overdrive Truck Finance compares options across more than 80 banks and non-bank lenders to match each application with a suitable structure and rate, rather than relying on a single lender's policy. This comparison process is particularly valuable for older trucks, newer businesses or non-standard credit histories, where one lender's decline can be another's approval.
Get an Obligation-Free Quote
If you are weighing up heavy truck finance for a prime mover, rigid or fleet expansion, Overdrive Truck Finance can put together an obligation-free quote tailored to your business and the asset you have in mind. Enquiring is a soft credit check only, so it will not affect your credit score, and you can compare your options before deciding whether to proceed.
Ready to compare cheap rates?
Free quote in minutes, decisions in 24–48 hours. No credit-score impact to enquire.