Is your old truck’s performance letting you down and affecting your work? Do you visit the workshop more often than you’d like? Maybe it’s about time to think about the real cost of hanging onto that old truck and decide if you should sell it and get a new one!

Letting go of your old truck might be hard, especially if it’s been searing you well for a number of years.. Saying goodbye to an old friend is never easy.

Perhaps it’s about time to part ways with the old truck and consider getting a new one.

There are several things that you may want to consider before deciding since it involves a pretty substantial amount of Investment.

Old Truck VS Brand New Truck

Old Truck

Even if you’ve taken good care of your new truck, it won’t remain new forever and as your truck age, its value decreases. The older it gets, the more frequent you need to maintain it.

Maintaining an old truck won’t just cost you money but will also cost you your time. You have to spend time driving your truck to repair shops and you have to go without it which means you will miss a day’s work or two depending on how long it will take to be repaired.

It’s a hassle! You’ll lose a day’s worth of income from that.

Keeping an old truck may save you a lot of money by not buying a new one but eventually, the money you saved from that will be spent on maintenance of your old truck.

While it seems financially practical to keep an old truck, it is not. Your maintenance bill may be filed up over time without you even realizing it.

Unlike if you buy a new truck where you are free from stress, and hassle, you also saved money and time in visiting a repair shop.

When to sell your Old Truck?

• It needs repair every now and then
• Warranty is mostly expired
• The truck is slowing you down at work
• The repair cost is becoming more expensive than the return performance of the truck at work
• Old trucks do not have the safety features that exist with the new trucks
• Buying a new truck is cheaper than the overall cost of repairing your old truck
• Old trucks consume more gas
• Expenses in operating a truck increases

Should You Sell Your Old Truck and Get a New One?

Buying a new truck could be more affordable than your frequent visit to repair shops with your old trucks. Plus, it comes with a warranty that could cover the unexpected repair cost for its first three years.

You won’t have to worry about spending a penny when there is an unexpected problem with your truck.

Purchasing a new truck means keeping you updated with the trends and having its latest technology, especially its safety features that old trucks do not have.

Therefore, the cost of maintaining a new truck is cheaper than maintaining an old truck.

Aside from its brand new feels, working with a new truck will make you feel motivated. Thus, you will be more effective and productive at work.

Operating an old truck will make you worried all the time about the truck breaking down versus operating a new truck that helps keep your mind at ease from unexpected problems making you work efficiently.

Buying a new Truck

• It comes with a warranty and guarantees
• It saves you time and money compared to old trucks coming back and forth to repair shops
• Updated safety features and engineered for the safety of the truck operators and its passengers if there’s one
• New trucks mean greater access to updated features from the manufacturer
• It tends to have better fuel efficiency
• It is easier to maintain a new truck than an old truck
• Reliable
• Durable

Purchasing a new truck requires a lot of cash and due to some budgetary reasons, it’s not as easy as it seems to buy a new one. Thus, finding a perfect financing firm for your budget need is important!

And if you are looking for a great deal of truck loans, we at AGMFinance are here to help.

We offer a truck, trailer, and equipment finance from 5.99%.

AGMFinance is a multi-award-winning truck loan company from 2015 up to the present. With hundreds of 5-star reviews from happy customers:

“Their rates are second to none!” -Cameron Jones (Director & CEO)
“A fleet of over 100+ trucks, the only broker we use.” – Raj Deol (Director & CEO)
“Finance was flawless…an absolute pleasure.” – John Golubovic (Director)
“A great deal with a can-do attitude.” – Robin Joseph (CEO)
“Most professional finance team you can find Australia wide.” – Terry Lef (Director)

Best Australia Brokerage to Help You Buy A Brand New Truck

AGMFinance is your go-to! They gained a reputation as one of Australia’s leading brokerage firms and received multiple awards for excellence.

AGMFinance provides low-cost financial solutions to clients across the country. We work with a broad range of clients from a variety of industries.

Our highly skilled team has more than 100 years of combined industry experience, making us the right people to tailor a financial solution to your unique needs.

Today, AGMFinance is a multi-award-winning firm helping thousands of Australians and is recognized as Australia’s leading truck and equipment finance specialist.

Call Us Today on 1300 664 687 for a great deal and fast approval!

Apart from the many disruptions to our lives, COVID taught us many things. The Transport & logistics industry was tested in ways we’d never seen before. Truck drivers were stopped at borders, deliveries were delayed, store stock levels were dramatically impacted and consumers were left frustrated. On the upside, many came to realise just how important transport and truckers are to the world.

They deliver the critical goods that we need to the stores so that we can get them when needed. These essential workers put their lives on the line every day, not only in terms of road safety, but being exposed to COVID risks at every stage along the supply chain.

You may be wondering: is now the right time for you to be starting a truck business?

It certainly is so we’ve compiled some tips to help you get started.

Capital May Be Your Biggest Challenge When You Get Started

Though it is becoming easier to get loans now that things are opening back up, you may have a tough road ahead. In order to submit your new credit application you will need to have at least 2 years industry experience, a minimum of 20% cash deposit and a satisfactory credit file.

Shopping Around for Truck Finance Is a Must

With all of the banks & lenders competing for your business, all of the options can make shopping for the right truck loan time-consuming and confusing. Using an experienced truck loan broker will save you a lot of time and money. They are great at helping both individual & fleet owners find the right finance solution for both trucks and trailers.

It May Take Some Time to Find the Right Truck

With all manufacturers being affected by production and parts supply issues, the stock levels of new trucks has decreased dramatically. This has driven up demand and pricing of used trucks to unprecedented levels. You may have to widen your search well beyond your local area to find the right vehicle at a fair price.

It may also pay to approach other truck owners to see if they are interested in selling or know someone who is. Used truck dealers have staff on the phone all day searching for stock so use your personal network of contacts to see what you can find. The great thing about Australia is, we like to help a mate.

Take Your Time Hiring Drivers

If you’re not going to be a solo owner-operator, you’ll need to hire drivers.

Drivers are in short supply at the moment so you may need to advertise or ask around within industry circles. You may also consider approaching truck driving schools to recruit new drivers, or start approaching other drivers to see if they’re happy with their current company. As a smaller entity you can be more flexible so offering them more benefits may encourage more experienced drivers to work with you.

Make Sure That Preventative Maintenance Is Built-in to Your Business

It almost goes without saying but in this post-COVID climate, truck & fleet maintenance is essential to keep your truck business running.

With supply-chain issues affecting parts supply worldwide, preventative maintenance is key. Don’t wait for a breakdown as you may be off the road for a lot longer than you’re used to.

If you’re ready to get started. Talk to the team at AGM, their 25 years of experience in the trucking finance industry is widely respected. With 5 star ratings from hundreds of happy trucking clients and multiple awards from the industry, you’ll be in good hands and off to a great start with your trucking business.

The coronavirus pandemic has bought plenty of changes to the world of trucking. From the type of haulage, how businesses operate, and the day-to-day working life of drivers—changes have been rife.

The ability to purchase new and used trucks and parts has also been impacted, but thankfully, AGM Finance can help customers navigate the purchasing process with ease.

Securing Heavy Vehicle & Truck Finance Amidst Covid

The usually reliable timeline for manufacturing trucks and heavy vehicles has been put out of kilter throughout the pandemic.

Ongoing staffing issues, material and shipping delays have contributed to significantly longer wait times for new vehicles and parts.

For those looking to expand their fleet or replace old vehicles, this delay can be troubling from an operational point of view but can also present headaches when securing finance.

Loan Approval

Typically, a finance approval for a new truck or heavy vehicle purchase is valid for around three months.

Currently, some trucking businesses are waiting up to a year to receive their new purchase, meaning their finance application is expiring several times within the waiting period.

Without the help of a finance broker, a purchaser needs to apply for the same loan repeatedly.

To simplify the process and allow our clients to focus on the day-to-day operation of their business, the highly skilled team at AGM can manage your finance application from start to finish, including renewals.

We work closely with our lenders and the vehicle dealerships, ensuring you don’t need to double-handle or worry about anything.

Fast Loan Approval- Try Secondhand

For businesses that can’t wait for a new purchase to arrive in Australia, the secondhand marketplace is your best opportunity to secure vital vehicles and equipment.

Increased demand for used vehicles is pushing up prices — a great benefit if you’re looking to sell, but it’s making the marketplace competitive for buyers.

Securing pre-approved finance can help you snap up a truck or part without delay, though not every lender will finance older trucks.

The major four banks in Australia apply age restrictions to finance applications for trucks and heavy vehicles.

Those restrictions push customers into purchasing new or near-new trucks, but it doesn’t have to be that way.

With access to over 40 different lenders, the team at AGM specialises in used purchases and secure the right finance deal for your next purchase, regardless of age.

With a loan approval success rate of 98 percent, we can provide finance for trucks up to 25-years-old and trailers up to 30-years-old.

Team of Finance Specialists

To received tailored finance solutions for your next purchase, contact our team of finance specialists today.

They can provide you with an obligation-free quote and walk you through the entire purchasing process. Call 1300 664 687 or email: [email protected]

Key takeaways

• Before you apply, confirm the truck actually fits the work you have lined up and the contracts you want to win, including any client age or compliance requirements for site access.
• Lenders look at credit history, business trading time, industry experience and evidence of upcoming work. A clean file and a clear story matter more than a perfect one.
• The right finance structure depends on whether you want to own the truck outright, manage cash flow with a balloon, or keep the asset off your balance sheet. Common options include chattel mortgage, commercial hire purchase, and lease finance.
• Have your ID, ABN details, recent bank statements, financials, and truck details ready before you apply. Missing documents are the most common reason applications stall.
• A finance broker carries far more buying power than a single direct application, and protects your credit file from multiple enquiries while finding the lender with the right appetite for your transport type.

Investing in a new truck is a big decision that deserves a bit of forward planning, conversation and research before you sign anything. The right truck finance  setup keeps your cash flow steady and your business moving. The wrong one can hold back contracts, drain working capital, and make day-to-day life harder for the drivers behind the wheel.

Whether you’re an owner-driver buying your first prime mover, a transport operator growing your fleet, or a tradie picking up a tipper for site work, the steps below will help you walk into your application prepared.

Avoid common pitfalls by working through these five things first.

Five Things to Consider Before Applying for Truck Finance

1. Do you need the equipment or heavy vehicle you’re looking to purchase?

While this question might seem obvious, it’s surprising how often businesses invest in new equipment or vehicles that don’t actually fit their needs.

Answering the question of ‘need’ takes a two-pronged approach.

Firstly, you need to assess whether you have enough work lined up for it.

Put simply: will the income generated, or time saved, by the additional vehicle be greater than the cost of repaying and maintaining it?

Secondly, you need to confirm that the truck is the right age and type for your intended use (see below).

2. Are you purchasing the right truck for the task and your future clients?

To work with any business, you’ll sign a contract outlining the terms and conditions.

In the world of heavy vehicles, it’s common to see contract requirements around the age of vehicles permitted onto job sites, mine entries, and port access lanes.

Before investing in a new truck, be sure you know the fleet requirements of your major clients, as well as any you hope to work with down the track.

Then, consider whether the truck is genuinely suited to the job.

Think horsepower, GCM rating, body type, safety specs, fuel economy, and the routes you actually run.

Taking the time to assess the capabilities of your future purchase and how your clients will regard it can save plenty of headaches in the long term.

3. Do you have good credit?

Without a tidy credit history, securing finance can be slower and harder, especially if you’re applying for a loan without expert advice from a finance broker. Our highly skilled brokers at AGM Finance make sure we have all the facts before we submit any applications, which means there are no unnecessary delays.

By reviewing your credit file, we can determine your financial eligibility and decide the best course of action for you, your business, and your next acquisition.

If your credit file isn’t perfect, you still have options. We have access to over 60 lenders across Australia, so we focus on finding the one with the right appetite for your transport type rather than letting your file decide the outcome. 

Read more about how we approach this in our guide on how distance and location affect your truck finance options.

4. What sort of loan is right for your needs?

Choosing the right type of finance is as important as choosing the right truck.

To decide on the best loan type, work out if you want to own the truck outright at the end of the term or pay a final balloon payment to free up monthly cash flow along the way.

The deciding factors will be how long you plan to keep the truck and how you want to structure your repayments around the rhythm of your business.

If you intend on keeping the truck for the long haul, a longer term with a balloon payment can be more suitable.

Shorter-term purchases may suit a shorter loan, with higher monthly repayments and no balloon owing at the end.

There are several common finance structures used for trucks in Australia. The most popular are chattel mortgage, commercial hire purchase, and lease finance. Each has different implications for ownership, GST treatment, and how the truck sits on your balance sheet, so it’s worth a quick chat with your accountant before you lock anything in.

5. Use the buying power of a finance broker to secure the sharpest deal

You may assume it doesn’t make much difference whether you apply for a truck loan  yourself or use a finance broker.

The truth is, individual applications don’t carry the buying power of a broker, and you run the risk of missing opportunities if your self-submitted finance application  comes back unsuccessful.

At AGM, we have a 98 per cent success rate for loan approvals and access to 60+ lenders. That means we can guide you through your finance options and secure the sharpest deal for your transport business, regardless of where you operate or what you cart.

What to prepare before you apply for truck finance

Walking into a truck finance application with the right paperwork in hand is the single biggest thing you can do to speed up approval. Lenders don’t like surprises, and missing documents are the most common reason applications stall.

Most truck finance applications in Australia ask for some combination of the following:

• Photo ID and proof of address (driver licence works for both)
• Australian Business Number (ABN) and, where applicable, GST registration details
• Recent business bank statements, usually the last three to six months
• Financial statements or BAS lodgements, depending on how long you’ve been trading
• Asset and liability information, including any existing finance commitments
• Details of the truck you’re buying: make, model, year, VIN, kilometres, dealer or private seller invoice
• Evidence of work or contracts, especially if you’re new to the industry

Having these on hand before you start the conversation means your broker can match your file to the right lender straight away, instead of going back and forth chasing documents.

If you’re not sure what your numbers actually look like in monthly terms, run a quick scenario through our repayment calculator  before you apply. It gives you a feel for what fits your cash flow and helps you have a more useful conversation with us.

Common mistakes that can delay your truck finance approval

Even strong applications get held up by avoidable errors. The good news is that almost all of them are easy to dodge once you know what to watch for.

Applying with multiple lenders at once

Submitting applications to several lenders directly, especially in a short window, leaves multiple credit enquiries on your file. That can work against you, even if your business is sound. A broker submits to one suitable lender at a time, protecting your credit profile.

Underestimating on-road and setup costs

The drive-away price is rarely the full picture. Registration, stamp duty, insurance, signwriting, GPS, fit-outs, and any compliance work on bodies or trays can add thousands. Build these into your numbers from the start so the loan amount you apply for actually covers what you need.

Mixing personal and business finances

Lenders look closely at bank statements. Heavy personal spending running through a business account, or vice versa, makes it harder to read your cash flow. Tidying this up before you apply pays off.

Choosing the truck after you choose the finance

Pre-approval is a powerful tool. Knowing what you can comfortably borrow before you walk onto the dealer lot puts you in the buyer’s seat instead of the salesperson’s. It also stops you from falling for a truck that doesn’t actually suit your work.

For more on what brokers look at behind the scenes, read what truck finance brokers consider.

Applying for truck finance as a new business

If your ABN is less than two years old, you’ll often hear the term ‘new-to-business’ or ‘low-doc’ applicant. It doesn’t mean you can’t get finance. It just means lenders will look at slightly different things to build their confidence in you.

Most lenders will want to understand:

• Your industry experience, including time spent driving or working in transport before going out on your own
• Evidence of upcoming work, such as sub-contractor agreements, purchase orders, or signed contracts
• Your living situation, which gives lenders a feel for financial stability
• Your personal credit history, since it carries more weight when business trading history is short

A strong story matters here. We help new operators put together an application that paints a clear picture of why the business will work, not just the bare numbers on a balance sheet.

If you’re buying your very first truck, our guide to first truck purchase mistakes to avoid as a new business  is worth a read before you commit.

What happens after your truck finance application is approved

Approval isn’t the end of the process. Knowing what comes next stops nasty surprises and helps you get on the road faster.

Once your application is approved, the typical steps are:

1. Loan documents are prepared and sent to you for signing.
2. You return signed documents, along with any supporting items the lender still needs (proof of insurance is a common one).
3. The lender reviews and certifies the file for settlement.
4. Settlement is booked with the dealer or private seller, and funds are paid directly to them.
5. Registration is transferred into your name or business name.
6. You collect the keys and get to work.

For most clients, the gap between approval and settlement is a matter of days, not weeks, provided everyone responds promptly. Keep your phone close and any outstanding documents ready to go.

Ready to start your truck finance application?

Once you’ve worked through the five things above and put your documents together, the next step is a quick chat. Call our award-winning finance experts on 1300 664 687, or apply for finance online. We’re here to walk you through it.

We’ve been arranging truck finance for owner-drivers, transport operators, and trade businesses across Brisbane, Sydney, Melbourne, Adelaide, Perth, Canberra, and regional Australia for 30 years.

FAQs

How long does truck finance take in Australia?

It depends on how clean the application is and how quickly documents are returned. With everything in order, many of our clients move from initial conversation to settlement within a few business days. More complex cases, like start-up businesses or private sales, can take a little longer.

Can I get truck finance for a used truck?

Yes. Used trucks are financed every day in Australia, and many of our clients buy used as a way to manage cash flow. Lenders consider the age, hours, kilometres, and condition of the truck when assessing the deal. Our truck loans  page goes into more detail on what we can fund.

Do I need a deposit for truck finance?

Not always. Some clients put cash in to lower their repayments. Others structure the deal with no deposit and use a balloon to keep monthly outgoings manageable. With 60+ lenders on our panel, we work to match the structure to your business rather than forcing your business to fit a single lender’s policy.

Can new businesses get truck finance?

Yes. New ABN holders are a big part of the Australian transport industry, and lenders know it. Approval comes down to how well your application is presented: industry experience, evidence of work, and a clean personal credit file all carry weight when your business trading history is short.

Can I get truck finance with a less-than-perfect credit history?

Often, yes. Past defaults, late payments, or other marks on your file aren’t automatic deal-breakers. Our role as a broker is to find the lender with the right appetite for your situation, rather than putting your file in front of a lender who was never going to say yes.

What’s the difference between truck finance and a truck loan?

The terms are often used interchangeably, but in practice they cover slightly different ground. Truck finance  is the umbrella category that includes structures like chattel mortgage, commercial hire purchase, and lease finance. A truck loan  usually refers to the funding itself once a structure has been chosen. AGM can help with both.