Operators needing new vehicle financing in a rising interest rate market can look at various options for the cheapest truck finance lenders, loans and rates. When vehicles are unserviceable, reached the end of their life cycle, or not suitable for current contracts and applications, delaying a purchase is not an option. What can present options is the way the vehicle is financed.
In 2025 interest rates were reduced by the Reserve Bank (RBA) and it was looking like further cuts were ahead. Based on that outlook, operators may have planned to upgrade and replace their vehicles in early 2026. But most, if anyone, planned for was for interest rates to be increased.
Australia’s inflation rate was the major reason behind the February rate rise and recent data released by the ABS has the markets readying for a March or May rate rise. But domestic economic conditions are not the only consideration for the RBA Board.
As the Governor of the Reserve Bank, Michelle Bullock regularly notes in Monetary Policy Decision statements – global uncertainty is always a consideration in interest rate decisions. That has become a very real threat to Australian rates with USA and Israel’s attack on Iran and the evolving conflict across the Middle East. The timeframe of this scenario is a complete unknown.
The global economic repercussions of the situation are expected to impact Australia with higher fuel prices and potentially further rate rises. Upcoming RBA rate decisions are scheduled for 17 March and 5 May. The rate scenario may have been operators putting the brakes on their plans for new vehicles. But before completely discarding the idea and the potential downsides of not upgrading or replacing, there may be options for securing affordable, workable truck loans at competitive rates.
New vs Used – Assess Cheapest Truck Finance
When the most affordable option is required, opting for second-hand rather than brand new can be a no-brainer for many operators. Prices on used vehicles are lower than new models. But where financing is required, the cost of the loan must also be taken into consideration.
The same credit facilities apply to new and used vehicle loans, but interest rates will differ as may the terms offered and the deposit requirements. Lenders advertised the best rates for new vehicles. Rates for used vehicle loans will need to be quoted as they may depend on the age and condition of the vehicle.
Most used vehicles will be accepted as loan collateral but not necessarily for the full amount requested for the loan. A larger deposit may be required which may pose an issue for some operators. New vehicle finance may be more readily approved for no deposit finance for many operators compared with used vehicle financing.
Separate from the loan, when weighing up any savings to be made by paying a lower purchase price for a used vehicle, operators may also give consideration to the ongoing costs. Used vehicles may attract higher costs over the loan term with repairs and maintenance, tyre replacement, engine reconditioning and upgrades to comply with any new safety and emissions regulations. Business loans are available for truck maintenance and repair costs which may present an affordable solution.
Cheapest Truck Finance Facilities
Heavy vehicles can be financed with the business’ choice of Lease, Rent-to-Own, Chattel Mortgage or Commercial Hire Purchase. The interest rates differ with these credit facilities. Chattel Mortgage and CHP attract the lowest asset acquisition rates across the market. Leasing has a slightly higher rate and Rent-to-Own attracts the highest rate.
The accounting method used by the business will be a major determinant of which asset acquisition facilities can be used to finance assets. Chattel Mortgage is suited to the cash method, and Lease and Rent-to-Own to the accruals method. But Commercial Hire Purchase can work with both methods of accounting. Offering operators using the accruals method an option to secure the cheapest rates.
Use our Truck Finance Calculator and our current rates to calculate repayment estimates and see the difference with the different credit facilities.
The decision to opt for CHP rather than Lease or Rent-to-Own may involve considering the features of each facility. With Lease and Rent-to-Own, the lender retains ownership of the vehicle, so the operator does not need to list the asset in their accounting books. The repayments are fully deductible. CHP does require the operator to list the asset and claim a tax deduction through asset depreciation. If the business can work this issue to suit their objectives, they may have the opportunity to finance with one of the cheapest loan products.
Comparing Lenders for Cheapest Truck Finance
The choice of bank or non-bank lender can be a major factor in the cost of asset financing. While all the major banks offer asset finance, specialist heavy vehicle non-bank lenders can be highly competitive. They understand the transport sector, know the vehicles and the industry sectors.
Accessing specialist non-bank heavy vehicle lenders is facilitated through Jade Truck Loans. We have accreditation with these lenders and can source operators their most affordable loans at the most competitive rates.
Don’t defer upgrading or replacing your vehicles due to the rate market. Request a quote for your cheapest truck finance from Jade Truck Loans on 1300 000 003.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.
