If you’re looking to finance a truck, there’s no doubt you’ve spent a long time contemplating whether to go new or used. Both options have their benefits, but when finance is involved, the differences can have a big impact on your bottom line.
At Loans Unlimited, we work with 40+ lenders willing to finance new and used truck sales. Whether you’re hauling freight or running deliveries, we can help you find a fair and manageable deal.
Here’s what you need to know about new and used trucks in Western Australia. For more information, get in touch with our crew.
It’s no surprise that a new truck means a higher price tag. Don’t forget that that can affect your borrowing power and deposit requirements – a larger loan often needs to be supported by a larger down payment.
A tip from our crew: With the Loans Unlimited truck finance calculator, you can estimate different repayment and deposit combos. Crunch some numbers and see what’s affordable before applying.
Lenders see new vehicles as less risky. They hold more value, are less likely to break down and might even come with a warranty. Because of that, they’ll offer better financing rates for new trucks.
But if your looking at a pre-owned truck, finance might come with slightly higher rates. Lenders aren’t huge fans of older vehicles or high mileage and might even have an age limit (15 years, for example).
Our team know commercial truck loans like the backs of their hands and have formed strong relationships with flexible lenders. So if you’re looking at a vehicle that is a bit older, we’ll match you to the right loan.
New trucks often qualify for longer loan terms. You’ll enjoy more flexibility in determining your repayments and might even be able to include a balloon payment, which lowers your monthly repayments by deferring a lump sum to the end.
On the other hand, lenders put shorter term caps on used trucks. If, for example, you’re financing a 10 year old vehicle, you might only be able to stretch the loan over 4-5 years.
A new truck has more value and there’ll be higher insurance premium to cover that. But on the flip side, it will likely require less maintenance in the first few years and won’t come with too many surprises.
Used trucks are the opposite. You’ll save on insurance, but may need more frequent servicing and parts replacement. Make sure you double check the truck’s condition before you apply for a commercial loan (lenders may ask for those details).
New trucks can lose as much as 20-30% of their value in the first couple of years. That’s important to recognise if you plan to upgrade or resell in short time.
Used vehicles depreciate slower and the asset will hold more of its value during the loan term. For many, that offers a more stable and comforting option when truck finance is involved.
New or used? It’s the number 1 question for countless commercial truck loan applicants.
Here’s a quick way to look at it:
Choose New If… | Choose Used If… |
|---|---|
You want the latest tech or warranty | You want a lower overall loan |
You’re eligible for low-interest offers | You need lower repayments or less upfront cost |
You plan to use the truck heavily over many years | You only need the truck part-time or short-term |
You want to claim tax benefits or GST credits | You’re running lean and need to stick to budget |
Truck finance will never have a ‘one size fits all’ solution. Whether you choose to go new or used will come down to what makes sense for you business and cash flow and how long you plan to keep the asset.
At Loans Unlimited, our crew help West Aussies finance new and used trucks and we know a host of lenders ready to offer the best options for each. Whether you’re adding to your fleeting or just getting started, we’ll get you sorted with financing that matches your goals.
Click ‘Apply Now’ at the top of your screen and get pre-approved today.
