A refrigerated truck is usually financed with a chattel mortgage that funds the cab, body and refrigeration unit as one asset. You own it from day one, secure the loan against it and repay over one to seven years, often with a balloon. Because the reefer unit adds cost and complexity, lenders assess its age and condition too. Overdrive compares 80+ banks and non-bank lenders to structure finance around your cold-chain work.
Financing the truck and reefer as one
A refrigerated truck is more than a cab and chassis; the insulated body and refrigeration unit are a big part of the value. Most operators fund the lot with a single chattel mortgage, so the truck and reefer are financed together and secured under one loan. You own the asset from settlement and repay over one to seven years, with a balloon available to ease monthly repayments. If the reefer is being retrofitted to an existing truck, some lenders will finance the unit separately. Because cold-chain gear is specialised, it helps to compare lenders that understand refrigerated transport rather than settling for the first offer.
What lenders look at
Lenders assess both the truck and the refrigeration unit. For the reefer, they consider its make, age, running hours and service history, since a well-maintained unit holds value while a tired one may attract a higher rate or shorter term. For the truck, age and kilometres matter. On the business side, they review your ABN and GST registration, time trading, delivery contracts with grocers, seafood suppliers, pharmacies or caterers, and your credit history. Established operators may access low-doc finance. Newer businesses can still be approved, particularly with a deposit, a supply contract or added security to support the application, subject to lender criteria.
Structure and repayments
Cold-chain work often runs on tight margins and regular routes, so predictable repayments help. A balloon of 20 to 40 per cent lowers your monthly outlay, and repayments can be set weekly, fortnightly or monthly to match when customers pay. No deposit is common for strong applicants, while a deposit or trade reduces the amount financed and can sharpen the rate. Keep in mind the reefer unit needs servicing, so budget for maintenance alongside repayments. Indicative rates start from around 7.20% p.a. for strong, asset-backed deals; older trucks, older reefer units or weaker credit are priced higher, subject to lender assessment.
Pre-approval and next steps
Refrigerated trucks in good order do not sit around, so pre-approval gives you the edge to move quickly. It sets your budget and lets you negotiate as a cash buyer. Have your ABN, GST and licence details ready, along with any delivery contracts and recent bank statements. A broker lodges a single application and compares lenders behind the scenes, matching you to one comfortable with the reefer unit. For eligible applicants, same-day pre-approval and 24 to 48 hour settlement may be available so you can lock in the right truck before someone else does.
Planning to add a refrigerated truck? Simon Kendrick at Overdrive can compare 80+ lenders, finance the truck and reefer together and set repayments around your delivery routes. Request a free quote for an indicative rate and pre-approval.
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