How much deposit do you actually need? From zero-deposit options to why a bigger deposit almost always means a better deal.
Not always — but in most cases, a deposit improves your approval chances, lowers your interest rate, and reduces your total cost. The minimum deposit depends on your credit profile, business history, and the lender you're applying with.
| Borrower Profile | Typical Minimum | Recommended |
|---|---|---|
| Established business, strong credit (2+ yrs) | 0% (no deposit) | 10% for better rate |
| Good credit, 1–2 years trading | 5–10% | 10–15% |
| New ABN / low-doc | 10–20% | 20% |
| Impaired credit | 20–30% | 30%+ |
| Used truck (older than 10 years) | 10–20% | 20%+ |
A larger deposit reduces the lender's risk (lower loan-to-value ratio). Many lenders offer rate tiers — for example, a 0.5–1% rate reduction for deposits over 20%.
Less borrowed = lower monthly repayments. On a $150,000 truck over 5 years at 7%, a 20% deposit saves approximately $350/month compared to zero deposit.
You pay interest on the financed amount. A $30,000 deposit on a $150,000 truck at 7% over 5 years saves approximately $11,200 in total interest.
Deposits demonstrate financial discipline and reduce lender exposure. For borderline applications (new ABN, credit issues), a deposit can be the difference between approval and decline.
$200,000 truck, 5-year term, 7% interest rate, no balloon:
| Deposit | Amount Financed | Monthly Payment | Total Interest | Total Cost |
|---|---|---|---|---|
| $0 (0%) | $200,000 | $3,960 | $37,624 | $237,624 |
| $20,000 (10%) | $180,000 | $3,564 | $33,862 | $233,862 |
| $40,000 (20%) | $160,000 | $3,168 | $30,099 | $230,099 |
| $60,000 (30%) | $140,000 | $2,772 | $26,337 | $226,337 |
Plus potential rate improvements with larger deposits which would further reduce total cost.
100% financing (no deposit) is available for established businesses with strong credit profiles. Lenders are comfortable financing the full asset value when:
Zero-deposit finance typically carries a small rate premium (0.25–0.5%) compared to applications with a 10%+ deposit.
If you're upgrading an existing truck, the trade-in value or private sale proceeds can serve as your deposit. This is common in the transport industry where owner drivers upgrade every 5–8 years.
It depends on your cash flow needs and the rate difference. If a 20% deposit drops your rate by 1%, the interest savings may outweigh keeping that cash. But if your business needs working capital for operations, a smaller deposit with slightly higher rate might be the better overall decision. Model both scenarios in our calculator.
Not directly as a deposit, but some lenders may consider additional assets as security, which can improve your application and reduce the rate. The deposit itself typically needs to be cash or a trade-in value applied to the purchase.
No — the deposit reduces the amount financed at the start. If you pay out the loan early, you save on remaining interest but the deposit was already applied to the purchase price. You retain the equity in the truck, which you'd realise when selling or trading in.
See exactly how different deposit amounts affect your monthly repayments and total finance cost.
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