What interest rates to expect on truck finance in 2025–26, what drives them, and how to secure the best rate for your situation.
Truck finance rates in Australia vary significantly based on your profile, the asset, and the structure you choose. Here's a general guide for 2025–26:
| Profile | New Truck | Used Truck (under 5 yrs) | Used Truck (5–10 yrs) |
|---|---|---|---|
| Strong credit, 2+ years trading | 5.5–7.5% | 6.0–8.0% | 7.0–9.5% |
| Good credit, 1–2 years trading | 6.5–8.5% | 7.0–9.5% | 8.0–11.0% |
| New ABN / low-doc | 8.0–11.0% | 9.0–12.0% | 10.0–14.0% |
| Impaired credit | 10.0–15.0% | 11.0–16.0% | 12.0–18.0% |
Rates are indicative only and change with market conditions. Always get multiple quotes for your specific situation.
Your credit score and history is the single biggest factor. A clean credit file with no defaults and a score above 600 puts you in the best rate tier. Defaults, judgments, or a thin credit file push rates up significantly.
Lenders reward trading history. 2+ years with consistent BAS lodgements gets the best rates. 1–2 years is acceptable. Under 12 months means low-doc or specialist products with higher rates.
New trucks from recognised manufacturers (Kenworth, Volvo, Scania, Isuzu, Hino) attract the best rates due to strong resale value. Older trucks or niche brands carry higher rates because of depreciation and resale uncertainty.
A larger deposit reduces LVR and lender risk. Financing 80% of the asset value gets better rates than 100% financing. Some lenders offer rate discounts at specific LVR thresholds (e.g., below 70%).
Shorter terms (3 years) sometimes attract slightly lower rates than longer terms (5–7 years), though the difference is often small. The bigger impact is on total interest paid — shorter terms mean less interest overall.
Balloon payments don't directly lower your rate, but they reduce monthly repayments which improves serviceability assessments. This can indirectly help with approval on borderline applications.
Different structures can carry slightly different rates. Chattel mortgages and hire purchase are typically the most competitive because the lender has clear security. Leases may carry a small premium.
Most truck finance in Australia is offered at a fixed rate for the term. This gives you certainty — your repayments won't change regardless of RBA rate movements.
Variable rates are less common in truck finance but may be available from some lenders. They start lower but carry the risk of increasing if the cash rate rises.
Always check the comparison rate, not just the headline rate. The comparison rate includes fees and charges, giving a truer picture of total cost. It's a legal requirement for lenders to disclose both under the National Consumer Credit Protection Act.
A lower rate doesn't always mean a lower total cost. Consider these factors:
| Factor | Impact |
|---|---|
| Establishment fee | $0–$990 upfront (included in comparison rate) |
| Monthly account fee | $0–$15/month — adds up over a 5-year term |
| Early termination fee | Some lenders charge if you pay out early |
| Balloon/residual | Reduces repayments but increases total interest |
| Tax benefits | Different structures have different after-tax costs |
For established businesses with good credit financing a new truck, rates typically range from 5.5–8.0% in 2025–26. The "average" most borrowers achieve is around 6.5–7.5% on a 5-year chattel mortgage.
Fixed-rate truck finance doesn't change once locked in. However, the rates offered to new borrowers are influenced by the RBA cash rate, swap rates, and lender funding costs. When the cash rate drops, new fixed rates tend to follow — though not always immediately or proportionally.
Often yes. A 3-year term at 7% costs significantly less total interest than a 5-year term at 6.5%. The monthly repayments are higher, but if your cash flow supports it, you'll save thousands and own the truck sooner.
Yes. Rates aren't fixed in stone — especially through brokers who can access panel rates and have relationships with multiple lenders. Having quotes from multiple sources gives you leverage to negotiate.
Plug in different rates, terms, and balloon amounts to see how they affect your monthly repayments and total cost.
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