A comparison rate on truck finance rolls the interest rate together with certain standard fees into a single percentage, so you can compare loans more fairly than by headline rate alone. It reflects the true cost more closely, though it is based on set assumptions and may not capture every fee. Approval and pricing depend on lender assessment. Overdrive compares 80+ banks and non-bank lenders on one application, weighing rate, comparison rate and fees together so you see genuine value, not just a low headline number.
What the comparison rate captures
The comparison rate is designed to show the real cost of borrowing by combining the interest rate with certain prescribed fees, expressed as a single annual percentage. A loan with a low headline rate but hefty fees can end up costing more than one with a slightly higher rate and minimal charges. The comparison rate helps surface that difference. It is a genuinely useful tool for cutting through marketing, because it discourages lenders from advertising a tempting rate while quietly loading fees elsewhere. Used properly, it turns a confusing set of quotes into something you can line up side by side.
Its limits and assumptions
The comparison rate is not perfect. It is calculated on standard assumptions, such as a set loan amount and term, which may not match your actual deal. It typically includes certain fees but may exclude others, like some optional or event-based charges. For commercial truck finance, where deals are individually priced, the comparison rate is more of a guide than a precise forecast of your cost. Treat it as one input, not the whole story. The most reliable way to know what a loan will cost you is to look at your specific quote, including all fees and the repayment schedule for your circumstances.
How to use it when comparing
When weighing quotes, look at the headline rate, the comparison rate and the total amount payable together. If two loans have similar interest rates but different comparison rates, fees are likely the difference, and it is worth asking what those fees are. Also consider term length, balloon or residual amounts and any early repayment conditions, since these shape the real cost. A slightly higher rate with lower fees and flexibility can beat a rock-bottom rate loaded with charges. Comparing on cost and structure, rather than rate alone, is how you find genuine value in truck finance.
Where a broker adds clarity
Comparing comparison rates across many lenders by hand is tedious and easy to get wrong. A broker does this routinely and knows which lenders bury fees and which are transparent. Simon can line up options from across the panel and explain, in plain English, why one quote is genuinely cheaper than another once every fee is counted. Indicative rates start from around 7.20% p.a. for strong, asset-backed deals, with higher pricing for weaker profiles, all subject to lender assessment. The goal is a clear view of true cost, not just an attractive advertised number.
A low headline rate is only part of the picture. Simon Kendrick compares 80+ lenders on one application and weighs rate, fees and structure together so you see real value. Request a free quote and get an honest read on what a loan will actually cost you.
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