Overdrive Funding arranges competitive business vehicle finance for Australian businesses. We compare 80+ banks and specialist lenders, negotiate the deal and manage everything from start to finish.
New finances at a lower rate. Used costs less to buy. Which one wins depends entirely on numbers most people never run — so here is how to run them.
The rate difference is smaller than the price difference
A new vehicle with full financials might get you from 6.1%. The same buyer on a three-year-old equivalent might see 7% to 8%. On a $60,000 loan over five years that difference is real but modest.
The purchase price difference is not modest. A three-year-old ute can be $20,000 cheaper than new. In almost every case that dwarfs the rate difference — which is why used generally wins on total cost, despite financing at a higher rate.
Where new actually wins
Three situations. First, where you cycle vehicles every three years — you never reach the expensive end of the maintenance curve, and you sell while resale is still strong. Second, where downtime is catastrophic, as in courier work, and warranty coverage is worth paying for. Third, where the used discount is small — Toyota being the obvious case, since a three-year-old HiLux is not cheap.
That last one matters more than people expect. On a brand with exceptional resale, the used saving may not justify taking on an out-of-warranty vehicle.
Where used wins
Where the first owner has absorbed the steepest depreciation and the vehicle has years of useful life left — which is most of the market. Ex-fleet vehicles are often the sweet spot: three to four years old, documented servicing, cycled on a schedule rather than run into the ground.
Rates and deposits
Established ABN (2+ years), new vehicle, full doc
Established ABN, used vehicle, low doc (no financials)
Newer ABN (under 12 months)
Prior credit issues or specialist lending
| Borrower profile | Indicative rate | Typical deposit |
|---|---|---|
| Established ABN (2+ years), new vehicle, full doc | From 6.1% | $0 – 10% |
| Established ABN, used vehicle, low doc (no financials) | 7% – 10% | 10% – 20% |
| Newer ABN (under 12 months) | 9% – 12% | 10% – 30% |
| Prior credit issues or specialist lending | 12% – 15% | 20% – 30% |
Rates are indicative only and subject to lender assessment, the vehicle, term and your individual circumstances. Low doc (no financials) business vehicle finance is available up to $300k for the right profiles.
Get a quote
Looking for the best rate on business vehicle finance? You're in the right place. Speak directly with Simon and our team for a free, no-obligation quote, or get a free quote online. Our service is completely free. We're paid by the lender only after a deal settles, so there's no cost to you—even if you choose not to proceed.