Truck and trailer finance: your questions answered

Most heavy vehicle lenders look at the age of the truck at the end of the proposed term rather than its age today. A common ceiling is around 15 to 20 years at term end for a prime mover, with trailers often treated more generously because they hold value and have fewer mechanical parts. An older unit can still be financed, usually with a shorter term, a deposit or a higher rate, and sometimes with an inspection or valuation required.

It is possible and we arrange these regularly, but it is assessed more carefully than a repeat purchase. Lenders want to see relevant driving experience, a licence class matching the vehicle, and ideally a signed contract, sub-contract agreement or letter of intent showing where the work is coming from. Property ownership or a deposit of around 10% to 20% strengthens the file considerably. Nothing here guarantees approval — each lender makes its own decision.

They are usually written as separate contracts even when bought together, because the assets have different lives and resale patterns. That lets you set a longer term on the trailer and a shorter one on the prime mover, or pay one out ahead of the other. Some lenders will bundle them under a single master facility with two commitment schedules, which keeps the paperwork simple while preserving separate terms for each asset.

Three things carry most weight: a contract or letter of intent showing where the work will come from, a deposit or trade-in of around 10 to 20 per cent, and relevant driving or industry experience. An owner-driver with a signed subcontract from a transport company, a clean licence and a modest deposit is a strong application even without years of financials. Established operators with financials and a fleet can usually borrow the full price. Lyft Money knows which lenders back new owner-drivers.

Yes. Used prime movers, rigids and vocational trucks are financed routinely, from dealers, private sellers and auctions. Most lenders allow the truck to be up to around 15 to 20 years old at the end of the term, so a ten-year-old prime mover can usually be financed over five years, with an inspection for private sales. Older or high-kilometre trucks attract shorter terms and higher rates, and some specialist lenders will finance older gear with a larger deposit.

Terms run from one to seven years, and the right term follows the contract and the truck. A prime mover on a five-year linehaul contract is often financed over five years so the repayments and the income line up. Vocational trucks such as tow trucks, crane trucks and tippers, which hold value well, are commonly financed over five to seven years. Shorter terms cost less in total interest but more per month.

Yes, and it is common. The prime mover and trailer can be financed under one application with either a single loan or two loans settled together, so the repayments are structured as one freight task. Financing them separately is also possible, for example when a trailer is added later or when different lenders offer better terms on each. Your broker structures whichever gives the lowest total cost and the simplest paperwork.

Established operators with financials can usually finance 100 per cent of the price. New owner-drivers are generally asked for 10 to 20 per cent, either as cash or a trade-in, and a deposit also improves the rate and widens the panel of lenders. Some lenders will accept equity in property in place of a cash deposit.

Established operators are often approved within 24 to 72 hours and can settle as soon as the dealer invoice and insurance are in place. New owner-drivers and private sales take a few days longer for contract verification and inspection. If a truck is on hold with a dealer, tell your broker so the approval is prioritised.

Almost any commercial trailer: semi-trailers, B-double sets, tippers and side-tippers, refrigerated trailers, curtainsiders, flat tops, drop decks, floats and low loaders, tag and dog trailers, tankers and livestock crates. New trailers from manufacturers and dealers are the simplest; used trailers are financed with an inspection. Specialised or heavily modified trailers may need a valuation because resale demand is narrower.

Yes. A trailer can be financed on its own chattel mortgage or lease, whether you are adding capacity to an existing rig, replacing a worn trailer or buying a second set for a new contract. Lenders assess it like any equipment purchase: the trailer is the security, and the business or operator’s history supports the application. Amounts commonly range from $15,000 for a tag trailer to $1 million for specialised sets.

Trailers hold their value and their working life is long, so most lenders allow a trailer to be 15 to 20 years old at the end of the term, and some go further for well-maintained equipment with a valuation. Private-sale trailers need a PPSR check and usually an inspection. Terms are typically shorter on older trailers.

One to seven years, with five years the most common for new trailers. Longer terms lower the repayment and suit trailers that will be in service for a decade or more; shorter terms suit trailers on a fixed-length contract. Your broker aligns the term with the freight task and any prime mover finance so the two run together.

Yes. Many trailers are built to order, and lenders can settle on delivery against the manufacturer’s invoice, with some able to fund progress payments or a deposit to the builder for larger builds. Lead times of several months are common, so getting the approval in place when you place the order avoids delays when the trailer is ready. Your broker coordinates settlement with the manufacturer.

Usually within 24 to 72 hours for established operators, and settlement follows as soon as the invoice and insurance are confirmed. Private sales take a few days longer for the PPSR check and inspection. For a trailer already on order, approval can be arranged ahead of delivery so the builder is paid on the day.