The Complete Guide to Prime Mover Finance in Australia

Key highlights

• Compare 80+ banks and non-bank lenders on one prime mover application
• Indicative rates from around 6.55% p.a. for strong, asset-backed deals
• Finance new and used prime movers, including older, higher-kilometre trucks
• Low-doc and no-financials options may suit owner-drivers and newer ABNs
• No-deposit and 100% finance available for eligible applicants
• Terms typically 1 to 7 years with balloon or residual options

How prime mover finance works

Prime mover finance is a form of commercial asset finance, which means the truck itself usually secures the loan. Because the lender holds security over a valuable, identifiable asset, this type of borrowing is generally priced more keenly than an unsecured business loan. Most operators use a chattel mortgage, where you own the prime mover from day one and the lender registers an interest on the Personal Property Securities Register until the debt is cleared. Other structures include finance lease and rent-to-own style hire purchase, each with different ownership, balloon and GST treatment. You borrow the purchase price, less any deposit or trade-in, and repay in regular instalments over an agreed term, often with a balloon at the end. The lender assesses you, your ABN, the asset and the deal as a whole. When Overdrive lodges your application, Simon compares more than 80 banks and non-bank lenders at once, matching your situation to the lenders most likely to approve it on sensible terms rather than sending you to a single bank and hoping for the best.

Current prime mover finance rates

Rates on prime mover finance start from around 6.55% p.a. for strong, asset-backed deals, but that headline figure is only a starting point. Pricing moves with the age and value of the truck, the size of your deposit, the strength of your ABN and credit history, and whether you are providing full financials or borrowing low-doc. Lower-doc applications, older or higher-kilometre prime movers, smaller or cheaper assets and weaker credit are all typically priced higher, and every rate is indicative and subject to lender assessment. A newer prime mover bought through a dealer with a healthy deposit and clean financials will usually attract the sharpest pricing, while a ten-year-old truck bought privately by a new ABN sits at the other end of the scale. Because Overdrive compares more than 80 lenders on one application, you see how different funders price the same deal rather than guessing. Nobody can promise you a rate before assessment, but comparing widely is the most reliable way to land a competitive one.

New and used prime movers

Lenders finance both new and used prime movers, and each has a place depending on your cash flow and workload. A new truck typically attracts the lowest rates, comes with full manufacturer warranty and gives you the longest usable life before you refinance or upgrade, which can matter if you plan to hold the asset for the full term. Used prime movers cost less to buy and can be excellent value, particularly well-maintained ex-fleet units with service history, though they are generally priced a little higher and may attract shorter maximum terms as the truck ages. Lenders look closely at condition, hours or kilometres, and whether the asset is bought from a dealer, at auction or privately. For many owner-drivers, a quality used prime mover is the smart entry point, keeping repayments manageable while you build a track record. Overdrive finances both, and comparing more than 80 lenders helps you see which funders are most comfortable with the specific truck and age you have in mind, so a used purchase does not automatically mean a poor deal.

Maximum vehicle age and kilometres

There is no single industry rule on how old a prime mover can be, because each lender sets its own limits. As a general guide, many funders are comfortable financing prime movers up to around 15 years of age, and some will go older at the end of the term rather than at purchase, meaning a truck that is already 12 years old on a five-year term may sit outside a particular lender's appetite. High kilometres are assessed alongside age, service history and overall condition rather than in isolation, since a well-maintained highway truck can present better than a lower-kilometre unit that has been worked hard off-road. Older or higher-kilometre prime movers are typically priced higher and may attract shorter terms and larger deposits, but they are far from unfinanceable. This is exactly where comparing widely pays off: where one lender declines an older truck on age, another may approve it. Overdrive's access to more than 80 banks and non-bank lenders means an ageing prime mover is matched to the funders that will actually consider it.

Low-doc and no-financials options

Not every operator has two years of up-to-date tax returns ready to hand over, and low-doc prime mover finance exists for exactly that reason. Instead of full financials, low-doc applications typically rely on bank statements, BAS, an ABN and GST registration, and sometimes just a signed declaration for smaller amounts, depending on the lender and the size of the deal. These options can suit owner-drivers, sole traders and businesses whose paperwork is not yet finalised, or who simply want a faster path with less documentation. Low-doc lending is generally priced a little higher than a full-doc application and may come with tighter deposit or asset-age requirements, because the lender is carrying more uncertainty. It is not a workaround for serious credit problems, but a legitimate route for genuine businesses with real cash flow. Because lender appetite for low-doc varies enormously, comparing more than 80 funders on one application through Overdrive is the most efficient way to find the ones willing to lend on the evidence you can actually provide.

No-deposit and 100% finance

No-deposit and 100% prime mover finance are available for eligible applicants, letting you preserve working capital rather than sinking a large lump sum into a deposit. Under this structure the lender funds the full purchase price, and in some cases the on-road costs as well, secured against the truck. It tends to be easier to obtain on newer, dealer-purchased prime movers with a clear resale value, and where the applicant has a solid ABN and clean credit, because the lender is relying entirely on the asset and your profile for security. A deposit or a trade-in can still help, often improving your rate and widening the pool of lenders willing to approve the deal, so no-deposit is not automatically the cheapest option even when it is available. Whether 100% finance makes sense depends on your cash flow, your tax position and how long you intend to keep the truck, so it is worth talking through. Overdrive compares more than 80 lenders to find which ones will fund the full amount on your particular deal.

New ABN and first-time owner-driver applications

Buying your first prime mover as a new owner-driver is a milestone, and a fresh ABN does not shut you out of finance. Some lenders specialise in new-to-industry and start-up applications, assessing your driving experience, any signed work contract or sub-contractor agreement, your deposit and your personal credit rather than expecting years of trading history. A recently registered ABN, a genuine plan for consistent work and evidence you can service the repayments all strengthen the case. Newer businesses may qualify subject to lender criteria, and a deposit or a strong contract can make a meaningful difference to both approval and pricing. Expect first-time applications to be assessed more conservatively, sometimes with a slightly higher rate or a larger deposit, because there is no established track record to lean on. The key is matching your circumstances to the handful of lenders comfortable with owner-driver start-ups, which is precisely what comparing more than 80 banks and non-bank lenders through Overdrive is built to do, rather than being knocked back by a bank that never lends to new ABNs.

Prime mover and trailer combinations

Many operators need more than the prime mover alone, and lenders can finance the truck and trailer together or as separate facilities. Funding a matched prime mover and trailer combination on one application keeps your paperwork simple and can be convenient when you are setting up a rig from scratch. Alternatively, you can finance the prime mover now and add a trailer later, or fund each asset with the lender best suited to it, since some funders are stronger on trucks and others on trailers. Trailers are also assessable assets in their own right and can be bought new or used, from a dealer, at auction or privately. Structuring the combination well matters for both your rate and your repayment schedule, especially if the trailer has a different useful life to the prime mover. Overdrive can arrange finance across the whole combination, comparing more than 80 lenders so the truck and trailer are each matched to a funder comfortable with that asset, whether you want one neat facility or the sharpest possible pricing on each piece of equipment.

Dealer, auction and private purchases

Where you buy your prime mover changes how the finance is handled. Dealer purchases are the most straightforward, with clear invoicing, GST documentation and often warranty, and they generally attract the widest lender appetite and the most competitive pricing. Auction purchases are common in the truck market and can offer real value, but they move quickly, so having your finance pre-approved before you bid is important, and lenders will want the auction invoice and confirmation of what you have actually bought. Private sales, buying directly from another operator, are also financeable, though the lender will typically carry out extra checks: confirming ownership, verifying there is no existing finance registered on the truck via the Personal Property Securities Register, and validating the sale price against market value. Private and auction deals may be priced a little higher or require more documentation because of that added diligence. Overdrive finances all three, and comparing more than 80 lenders on one application helps you avoid funders that shy away from auction or private purchases so your buying options stay open.

Work contracts and income evidence

Lenders want confidence that the prime mover will earn enough to cover its repayments, so income evidence is central to the assessment. A signed work contract, sub-contractor agreement or a consistent history of invoices to a head carrier is one of the strongest things you can present, particularly as a newer operator, because it shows reliable, ongoing income tied to the asset. For established businesses, tax returns, BAS and business bank statements do the same job by demonstrating trading performance over time. On low-doc applications, bank statements and BAS often stand in for full financials. The stronger and clearer your income picture, the more lenders will compete for the deal and the better your pricing is likely to be. If your income is seasonal or spread across several clients, it helps to explain that up front so the assessment reflects reality. Overdrive helps you present your income in the way lenders expect and, by comparing more than 80 funders, matches your evidence to the ones most comfortable with your particular work arrangement.

Loan terms and balloon payments

Prime mover finance terms typically run from one to seven years, and the term you choose shapes both your monthly repayment and the total interest you pay. A longer term lowers each instalment but costs more overall, while a shorter term does the reverse. A balloon, sometimes called a residual, is a lump sum deferred to the end of the term: you agree a percentage of the purchase price to pay off at the finish, which reduces your regular repayments in the meantime. When the balloon falls due you can pay it out, refinance it, or trade or sell the truck to cover it. Balloons are useful for managing cash flow, but the deferred amount still accrues cost, so a larger balloon means a bigger final commitment. The right balance between term, balloon and deposit depends on how long you plan to keep the prime mover and your tax position, which is worth checking with your accountant. Overdrive models different term and balloon combinations across more than 80 lenders so you can see the trade-offs clearly before you commit.

Single-vehicle versus fleet finance

Whether you are financing one prime mover or building a fleet, the fundamentals are the same, but the structure differs. A single-vehicle facility is straightforward: one truck, one loan, one set of repayments, which is the natural fit for owner-drivers and small operators. As you add trucks, some lenders offer master facilities or asset lines that pre-approve a total limit, letting you draw down to buy additional prime movers without a full new application each time, which speeds up expansion when the right truck comes along. Fleet operators may also negotiate sharper pricing on volume and benefit from consolidated reporting across multiple assets. The trade-off is that larger facilities involve more scrutiny of your overall financial position rather than a single deal. Growing from one truck to several is a common path, and structuring your first facility with that in mind can make later additions smoother. Overdrive works with operators at every stage and compares more than 80 lenders to match either a single prime mover or a multi-truck fleet to the funders best suited to your size and growth plans.

Popular prime mover brands

Overdrive finances prime movers across all the major marques, so the badge on the bonnet does not limit your options. We regularly arrange finance for Kenworth, the benchmark for many Australian long-haul operators, along with Volvo and Scania, both popular for their driver comfort and safety on highway work. Mack has a long heritage in heavy Australian applications, while DAF and Freightliner are common choices across a wide range of linehaul and regional duties. Mercedes-Benz prime movers round out a line-up that covers everything from single-truck owner-drivers to large fleets. Whichever brand you choose, the finance assessment focuses on the age, value and condition of the specific truck and on your business profile rather than the manufacturer, and different lenders can view resale values differently across brands. New or used, bought from a dealer, at auction or privately, Overdrive compares more than 80 banks and non-bank lenders to match your chosen prime mover to a funder comfortable with that asset, so you can buy the truck that suits your operation.

Interstate and Australia-wide finance

Transport rarely respects state borders, and neither does prime mover finance. Overdrive arranges finance for operators right across Australia, so it makes no difference whether you are based in Sydney, Melbourne, Brisbane, Perth, Adelaide or a regional town, or whether the truck you are buying sits in a different state to where you live. Interstate purchases are common in the prime mover market, particularly when the right used truck or the best auction unit happens to be a few states away, and lenders are well used to funding deals where the buyer, the seller and the asset are in different locations. The application, documentation and settlement can all be handled remotely by phone, email and electronic signing, so you are not tied to branch hours or your postcode. Same-day pre-approval and 24 to 48 hour settlement may be available for eligible applicants, which matters when a truck needs to be secured quickly. Wherever you and the prime mover are, Overdrive compares more than 80 lenders on one application to find the right fit.

Repayment examples at several purchase prices

The following examples are purely illustrative and are estimates only, not quotes; your actual repayments depend on the rate, term, deposit, balloon and lender assessment. As a first example, a $120,000 used prime mover financed over five years at an indicative 6.99% p.a. with no balloon works out to roughly $2,375 per month. Step up to a $220,000 near-new prime mover over seven years at an indicative 7.25% p.a. and the repayment is around $3,350 per month, with the longer term keeping the instalment down but increasing total interest. To show how a balloon changes things, a $180,000 prime mover over five years at an indicative 6.99% p.a. costs approximately $3,565 per month with no balloon, but adding a 30% balloon of $54,000 lowers the monthly repayment to around $2,810, leaving that lump sum to settle at the end. Every figure here is rounded and indicative only. For a repayment estimate built around your truck, deposit and circumstances, and for anything touching GST or depreciation, speak to Overdrive and check the tax side with your accountant.

Financing a prime mover is a big decision, and you do not have to make it alone or settle for the first offer that lands. When you are ready, your dedicated broker Simon Kendrick at Overdrive will compare more than 80 banks and non-bank lenders on a single application, explain your options in plain English and structure the finance around your business rather than the lender's. Reach out for an indicative, no-obligation chat about your next truck.