Becoming an owner-driver is a goal for many people who have spent years behind someone else's wheel. It brings independence, but also responsibility for everything the employer used to cover: the truck, the insurance, the maintenance, the paperwork and the cash flow when work is slow. Here are the things to think through before you sign for a first truck.
Start with the work, not the truck
It is tempting to look at trucks first. A better starting point is the work you intend to do. Who will you drive for? What loads, distances and trailers? Do you have contracts or relationships in place, or are you hoping to find work once you own the truck? The kind of work dictates the truck, and a truck bought without work lined up can become an expensive ornament.
Talk to people already doing the job. Ask what a week looks like, what the quiet periods are, and what surprised them in the first year. Their experience is worth more than any brochure.
Match the truck to the job
A prime mover suits some work and a rigid suits other work, and the choice affects licence, insurance, running costs and resale. Our truck types guide gives a general overview, and the post on rigid versus prime mover goes further. Consider:
- The payload and body or trailer type you need.
- Whether you need a sleeper cab for long runs.
- Whether the truck can access the sites and routes you will work.
- Parts and service availability for the make in your area.
Check your licence and compliance
Make sure you hold the licence class needed for the vehicle and combination. Understand the registration, work diary and fatigue rules that apply to your type of work. The National Heavy Vehicle Regulator publishes information on the national scheme, and rules can differ depending on the state and the work. Do not rely on a seller or a mate for this; check with the authority.
Think about new versus used
A used truck usually costs less up front, but it comes with more unknowns. A new truck comes with a warranty and fewer surprises, at a higher cost. Neither is automatically right. If you buy used, inspect carefully and consider a mechanical inspection from someone independent. Our buyer checklist is a good place to start.
Understand the full cost of ownership
The purchase price is only the beginning. Think about fuel, tyres, servicing, repairs, registration, insurance, tolls, finance repayments, accounting and downtime. Our post on running costs lists the main categories. Build a realistic budget, and include a buffer for the weeks when the truck is off the road or work slows down.
Finance and cash flow
If you plan to finance the truck, speak to lenders early and understand the terms before you commit. Look closely at the total cost, fees, any balloon payment, and what happens if you fall behind. Remember that approval is never certain and depends on the lender's criteria and your circumstances. Our finance guide has general information, and ASIC MoneySmart offers independent help on borrowing. A lender you may wish to talk to is our finance partner, though you should compare options.
Get professional advice
Before you buy, talk to an accountant about how to structure the business, how the truck will be treated for tax, and what records you need to keep. The Australian Taxation Office has guidance for people running a business. An insurance broker can explain the cover you need for the truck, the load and your own income.
Take your time
A first truck is a major decision, and pressure to buy quickly rarely serves the buyer. Inspect more than one, ask questions and walk away if something does not feel right. This post is general information and does not replace advice tailored to you.
When you are ready to look, browse trucks on the marketplace, and when you move on from your first truck, you can list it free.
