How truck finance generally works
Many buyers use finance to spread the cost of a truck over time. Common structures include loans where the truck is security, and leases. The right structure depends on your circumstances, so it is worth understanding the options before you commit.
What lenders may ask for
- Details of the truck, such as age, type and price.
- Information about your business or income, and your financial position.
- Identification and, for businesses, ABN and trading history details.
- In some cases, a deposit or other security.
Criteria vary between lenders and approval is never certain. Finance is subject to lender criteria and credit assessment.
Rates and costs
Illustrative only
Rates, fees and terms differ by lender and by borrower. Any rate you see in a general guide is illustrative and may not be available to you. Always compare the comparison rate, which includes certain fees and charges, along with the full terms and fees before choosing. A comparison rate is calculated on a specific set of assumptions and may not reflect your loan.
Questions to ask
- What are the total fees and charges over the term?
- Is there a balloon or residual payment, and what happens at the end?
- What are the early repayment terms and costs?
- What happens if I miss a payment?
- How will the loan be secured against the truck?
Tax and independent help
How finance, depreciation and running costs are treated for tax depends on your situation. The Australian Taxation Office publishes guidance for businesses, and an accountant can advise on your circumstances. For independent information about borrowing and comparing credit, see ASIC MoneySmart.
