Lenders price truck finance mainly according to risk. They weigh your credit history, ABN age and whether you are asset-backed, the truck's age and resale value, your deposit and documentation, then add their own funding costs and appetite for business. Lower risk generally means a lower rate. Because each lender assesses these differently, quotes vary widely. Overdrive compares 80+ banks and non-bank lenders on one application, so Simon can find the lender whose pricing model treats your specific profile most favourably.
Risk sits at the centre
At its core, truck finance pricing is about risk. A lender is lending money and wants confidence it will be repaid, so the more certain repayment looks, the lower the rate they will offer. Everything else feeds into this central question. A low-risk deal, such as an asset-backed borrower with clean credit buying a newer truck, attracts the sharpest pricing, while a higher-risk deal is priced up to compensate. Understanding that risk drives the rate helps you see why quotes differ and, importantly, which parts of your application you can strengthen to be viewed as a lower-risk, better-priced proposition.
Your profile as a borrower
Lenders look closely at who you are as a borrower. Your credit history is central; clean repayment records signal low risk, while defaults or missed payments raise it. ABN age and trading history matter, since an established business offers more evidence of stability than a new one. Being asset-backed, meaning you own property, adds security and comfort. Serviceability, shown through income or bank statements, tells the lender you can meet repayments. Each of these shapes the rate. The stronger and cleaner your profile across these measures, the closer you sit to the sharp end of a lender's range, subject to assessment.
The truck and the structure
The asset being financed is priced too, because it is the lender's security. A newer, mainstream truck with strong resale value is easy to recover and sell if needed, so it is financed keenly. Older, high-kilometre or specialised trucks carry more uncertainty and are priced higher. How you structure the deal also matters: a larger deposit lowers the amount at risk, full documentation gives the lender more to assess, and term length and balloon arrangements shift the picture. These are levers you can influence, which is why the same borrower can be quoted differently depending on the truck and structure chosen.
The lender's own costs and appetite
Beyond your application, each lender has its own cost of funds and appetite for business, and these shape pricing too. When funding costs rise, rates tend to firm; when a lender is chasing market share, it may sharpen pricing to win deals. Some lenders specialise in certain truck types or borrower profiles and price those keenly while charging more elsewhere. This is why there is no single market rate, only a spread. Indicative pricing starts from around 7.20% p.a. for strong, asset-backed deals, higher for weaker profiles, all subject to lender assessment and current conditions.
Because each lender prices risk and appetite differently, the same profile can attract very different quotes. Simon Kendrick compares 80+ lenders on one application to find the pricing model that treats you best. Get a free quote and see where your profile is valued most.
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