New trucks generally attract sharper finance rates than used trucks because a newer asset is lower risk and easier for a lender to resell if needed. That said, a well-chosen, mainstream used truck in good condition can still finance competitively, with strong deals seeing indicative pricing from around 6.55% p.a., subject to lender assessment. The gap depends on the truck's age, type and your profile. Overdrive compares 80+ banks and non-bank lenders on one application, so you can see new and used options priced side by side.
Key highlights
- New trucks often finance at sharper rates than used
- A mainstream, well-kept used truck can still price competitively
- The rate gap widens with age and specialisation
- Compare new and used options across 80+ lenders
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Why new trucks often price sharper
A new truck is the lowest-risk asset a lender can secure against. It has full life ahead of it, a predictable resale market and no history of wear or hidden faults, so lenders are comfortable pricing it keenly. That is why new trucks often see the sharpest indicative rates, particularly for strong applicants with clean credit and a seasoned ABN. The certainty around the asset's value over the loan term means the lender is pricing less risk, which flows through to a lower margin and a more attractive rate for you.
How used trucks are assessed
Used trucks are absolutely financeable, but lenders look harder at age, kilometres, condition and how easily the unit resells. A late-model, mainstream used truck in good order can price close to new, while an older or high-kilometre unit carries a wider margin because its resale value is less certain. Specialised or heavily modified used trucks are viewed more cautiously still. The key point is that not all used trucks are treated the same; a well-chosen one can finance competitively, whereas an older niche unit will cost more to fund.
Where the gap comes from
The rate difference between new and used is really about predictability of value. A lender wants to know that if it has to recover the truck, it can sell it for close to what is owed. A new truck offers that certainty; a used one introduces more variables, and the older it gets, the more the margin widens to cover the risk. This is why the new-versus-used gap is small for near-new trucks and grows as the used truck ages, rather than being a fixed penalty for buying second-hand.
It is not only about the rate
A sharper rate on a new truck does not automatically make it the cheaper choice. A used truck usually costs far less upfront, so even at a slightly higher rate, the total you finance and repay can be lower. Depreciation also hits a new truck harder in the early years. Weigh the purchase price, the rate, the total cost over the term and how the truck fits your work, rather than chasing the lowest percentage alone. The best value often depends on the whole picture, not just the finance rate.
Comparing both properly
Lenders differ in how they treat used trucks, with some far more comfortable on age and kilometres than others, so the right funder matters more on a used purchase. Rather than guessing or applying around yourself and risking multiple credit enquiries, a broker can match your chosen truck and profile to the lenders most comfortable with it and return indicative pricing in one pass. That lets you compare new and used options on real numbers and decide based on total value, not assumptions.
New or used, the right finance depends on the truck, your profile and the total cost, not just the headline rate. Overdrive puts one dedicated broker across 80+ lenders on a single application, so you can see both priced for your situation. Reach out for a no-obligation review and weigh new against used with real figures in hand.
Frequently Asked Questions
Is it harder to finance a used truck?
Not necessarily harder, but lenders look more closely at age, kilometres and condition, and some are far more comfortable with used trucks than others. A late-model, mainstream unit in good order finances readily, while an older or specialised truck narrows your options and lifts the rate, subject to lender assessment.
How old a truck can I finance?
Many lenders will finance older trucks, though the rate rises and the term may shorten as age increases, and some set limits on age at the end of the loan. There is no single cutoff across the market. A broker can identify which lenders are comfortable with the truck's age you have in mind.
Does a new truck always work out cheaper to finance?
No. A new truck may attract a sharper rate, but it costs more upfront and depreciates faster early on. A used truck at a slightly higher rate can mean a lower total borrowed and repaid. Compare purchase price, rate and total cost together, rather than judging on the rate alone.
Will a used truck need a bigger deposit?
Sometimes lenders seek a larger contribution on older used trucks to offset the higher risk, but this varies and no-deposit structures may still be available for eligible applicants. A deposit can also improve your rate. The requirement depends on the truck, your profile and the specific lender's criteria.
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