Truck Loan FAQ - Common Questions Answered

Yes, we work with specialist lenders who offer bad credit truck loans. While interest rates may be higher (typically 16.95%-26.95%), these lenders consider your business income, bank statements, and the truck's value as security rather than just credit score. Expect to provide 30-50% deposit. Self-employed operators with poor credit history can still get approved through Finance HQ, Credit One, and other alternative lenders.

We can help finance almost any commercial vehicle including box trucks, utes, curtain-siders, refrigerated trucks, food trucks, semi-trailers, tipper trucks, crane/Hiab trucks, flat deck trucks, and more. Both new and used business vehicles are eligible for asset finance or hire purchase.

Business vehicle loan amounts typically range from $10,000 to $500,000+. The exact amount depends on your income, credit history, business financials, and the truck's value. Banks can lend up to $1,000,000 for qualified applicants. Most owner-drivers finance $80,000-$150,000 for their first truck.

Truck finance terms typically range from 12 to 84 months (1-7 years). New trucks can be financed up to 7 years, used trucks typically 5 years maximum. Longer terms mean lower monthly payments but more total interest. Most owner-drivers choose 5-year terms to balance payments and interest costs.

Absolutely! We specialize in self-employed truck finance and work with lenders who understand owner-driver businesses. You'll typically need to provide 6-12 months bank statements, GST returns (if registered), and proof of contracts or work. Low doc options are available where lenders focus on current income and truck value rather than extensive financial history.

Current NZ truck finance rates range from 6.95% to 26.95% depending on your credit score, deposit, and lender. Excellent credit (720+): 6.95%-12.95%, Good credit (650-719): 10.95%-16.95%, Fair credit (550-649): 14.95%-21.95%, Poor credit (below 550): 18.95%-26.95%. Banks offer lowest rates, specialist lenders offer flexibility.

Deposit requirements vary by credit score: Excellent credit: 10-20%, Good credit: 20-30%, Fair credit: 30-40%, Poor credit: 40-50%. A larger deposit can reduce your interest rate by 2-4% and significantly improve approval chances. First-time owner-drivers should aim for 30% minimum.

Required documents: Photo ID and driver's license, 6-12 months bank statements, proof of income (payslips, GST returns, or tax returns), proof of deposit funds. For owner-drivers: Work contracts or letters of intent. For established businesses: 2 years financial statements. Some lenders offer low-doc options requiring only bank statements and contracts.

Pre-approval can be obtained within 24 hours for straightforward applications. Specialist lenders like UDC Finance and Credit One offer same-day to 48-hour approval. Bank approvals take 3-7 business days. Final approval after truck inspection takes an additional 24-72 hours.

Yes, refrigerated trucks can be financed from 8.95%-23.95% depending on age and credit. New reefers ($150K-$300K) require 10-20% deposit. Used reefers ($80K-$150K) require 20-40% deposit. Lenders want to see food transport contracts, MPI compliance documentation, and refrigeration maintenance history. Budget extra $5,000-$8,000/year for reefer maintenance.

Yes, food truck finance available from $20,000 to $250,000 at rates of 8.95%-24.95%. Low-doc options available for startups. Lenders consider fit-out costs, kitchen equipment value, and mobile food business potential. Need business plan, location permits, and ideally food safety certification. Some lenders bundle fit-out and equipment into single loan.

New trucks: Lower rates (6.95%-14.95%), smaller deposit (10-20%), full warranty, better fuel efficiency, but higher purchase price and steeper depreciation. Used trucks: Lower purchase price, known history, slower depreciation, but higher rates (10.95%-23.95%), larger deposit (20-40%), potential maintenance issues. First owner-drivers often choose quality used trucks ($80K-$120K) to minimize risk.

Hire Purchase: You rent the truck and own it at end of term, no balloon payment, may have tax advantages, technically not the owner during loan. Asset Finance (loan): You own truck immediately but it secures the debt, can sell anytime (must pay out loan), may have balloon payment option, full depreciation claims from day 1.

Common fees: Establishment fee $300-$800 (some lenders waive this), PPSR registration ~$150, documentation fee $100-$300, early repayment fee (some lenders), ongoing account fees $5-$15/month (some lenders). Total upfront fees typically $500-$1,500. All fees disclosed before signing. Many specialist lenders offer no-fee options.

Yes, truck loan refinancing can save money if rates have dropped or your credit has improved. You can refinance to: Lower interest rate (save on total interest), extend term (lower monthly payments), remove balloon payment, switch lenders for better service. Check for early repayment fees on current loan. Refinancing typically pays off if you can reduce rate by 2%+.

Yes! 100% of truck finance interest is tax deductible as a business expense. Example: $100K loan at 12.95% = ~$12,000 year 1 interest = $3,360 tax saving (at 28% company rate). This significantly reduces effective cost of borrowing. Keep all loan statements for your accountant.

Yes! You can claim depreciation even while making loan payments. Truck depreciation rates: 20% diminishing value or 13.5% straight line (your choice). Example: $100K truck = $20,000 year 1 depreciation claim (diminishing) = $5,600 tax saving at 28% rate. Combined with interest deduction, significantly reduces effective cost.

Yes, fleet finance available for 2-50+ vehicles. Fleet benefits: Discounted rates (typically 0.5-1.5% lower), single facility for all vehicles, simplified administration, flexible terms. Minimum 2 trucks for fleet rates. Best lenders: Oxford Finance (fleet specialists), UDC Finance (multi-vehicle), ASB Commercial (large fleets). Need established business and good credit.

Yes, comprehensive insurance is mandatory when financing a truck. Lenders must be noted as interested party on policy. Insurance costs: $3,000-$15,000/year depending on truck value, driver experience, and usage. Budget 3-5% of truck value annually. Get insurance quote before applying to understand total costs.

Yes! Previous decline doesn't mean permanent rejection. Reasons for decline: Insufficient income (get more contracts before reapplying), too much existing debt (pay down debt first), wrong lender (try specialist vs bank), poor credit (wait and improve score), insufficient deposit (save more). Wait 3-6 months, improve situation, and try different lender.