New vs Used Truck Finance

Side-by-Side Comparison

Factor	New Truck	Used Truck
Interest rate	5.5%–7.5%	6.5%–9%+
Deposit required	0–10%	10–20%
Max loan term	5–7 years	5 years (age-dependent)
Age limit	N/A	Typically <12–15 yrs at end of term
Warranty	Full manufacturer warranty	Varies — may have none
Depreciation (Year 1)	Higher — new trucks depreciate fastest	Lower — bulk of depreciation already occurred
Instant write-off	Eligible (if criteria met)	Eligible (if criteria met)
Resale value risk	Higher (more to lose)	Lower (already depreciated)

When New Makes Sense

You need the latest emission standards (Euro 6) for compliance
Full warranty coverage reduces the risk of unexpected repair costs
Lower interest rates make the total cost competitive despite higher purchase price
Technology features (telematics, ADAS, fuel efficiency improvements) deliver operational savings
You plan to keep the truck 7+ years and want maximum useful life

When Used Makes Sense

Budget is tight — a 3-year-old truck can cost 30–40% less than new
You're starting out and need lower monthly repayments
The truck will be used for local or metro work (lower km, less wear)
You're an experienced operator who can assess mechanical condition
You plan to own for 3–4 years then upgrade

Cost Comparison Example

	New Rigid ($180K)	Used 3yr ($120K)
Deposit (10%)	$18,000	$12,000
Financed amount	$162,000	$108,000
Rate	6.5%	7.5%
Term	5 years	5 years
Monthly payment	$3,169	$2,165
Total interest	$28,106	$21,886
Total cost (deposit + payments)	$208,106	$141,886

Estimates only. Use our calculator with your specific numbers.

Tips for Buying Used

Check service history — complete records indicate a well-maintained truck
Get an independent inspection — $300–$500 can save you thousands on hidden issues
Verify odometer and hours — check for consistency with service records
Check for finance encumbrances — use a PPSR search to ensure the truck isn't still under finance
Factor in reconditioning — tyres, brakes, and fluids may need immediate attention

Frequently Asked Questions

Not necessarily. A higher rate on a lower purchase price can still mean lower total cost. In the example above, the used truck costs $66,000 less in total despite a 1% higher rate. Always compare total cost, not just the rate.

Yes. The instant asset write-off applies to both new and used assets, provided you meet the eligibility criteria and use a chattel mortgage (you must own the asset).