Prime Mover Finance: Rates & How It Works

Key highlights

• Prime mover finance typically funds new and used trucks against the vehicle itself
• Your rate reflects credit profile, deposit, truck age and time in business
• Chattel mortgage and hire purchase are common structures for ABN holders
• Comparing 80+ lenders on one application can save time and legwork
• Indicative rates start from around 6.55% p.a., subject to assessment

What is prime mover finance and how does it work?

Prime mover finance is a commercial loan used to purchase the tractor unit that hauls semi-trailers, B-doubles and road-train combinations. In most cases the truck secures the loan, which can help keep rates sharper than unsecured lending. You choose a term, usually somewhere between two and seven years, and repay in regular instalments while the prime mover earns its keep on the road. Because it is a business asset, the finance is generally structured for ABN holders rather than personal buyers. A broker submits your profile to lenders, compares what each may offer and helps you weigh repayments against cashflow. The goal is a structure that lets the truck pay for itself over its working life.

What rate can you expect on a prime mover?

Rates on prime mover finance vary with your circumstances, so there is no single number that fits everyone. As a guide, indicative rates start from around 6.55% p.a. for eligible applicants, though your actual rate is subject to lender assessment. Lenders look at your credit history, the deposit you can contribute, the age and kilometres of the truck, and how long your business has been trading. A newer prime mover with a strong operator behind it may attract keener pricing than an older unit bought by a newer entity. Rather than guessing, it helps to have your profile shopped across a lender panel so you can see where the sharper offers sit for your situation.

Which loan structures suit prime movers?

Two structures come up most often for heavy trucks. A chattel mortgage sees you own the prime mover from day one while the lender holds security over it, which many operators prefer for its accounting treatment. Hire purchase works similarly, with ownership passing once the final instalment clears. Some operators consider a lease where the asset stays with the financier and you pay for use. Each option handles GST, depreciation and balloon payments differently, so the right choice depends on how your business accounts for vehicles and manages cashflow. These are general points only, and you should check the tax treatment with your accountant before committing to any structure.

What do lenders look at before approving?

Lenders assessing a prime mover application generally weigh your ABN and GST registration period, your credit file, the deposit or trade-in on offer, and the truck being financed. They also consider whether you have existing haulage contracts or a track record that supports the repayments. For established operators with clean credit, low-doc options may be available with lighter paperwork. Newer businesses or those with past credit issues can still find lenders on the panel, though terms may differ. Presenting a tidy application, with bank statements and a clear picture of your work, tends to help. A broker can flag which lenders suit your profile before you apply, which helps protect your credit file.

New or used: does it change your finance?

Whether you finance a new or used prime mover affects both the amount and the terms available. New trucks generally attract the widest lender appetite and can support longer terms, since the asset holds value across the loan. Used prime movers remain very financeable, but lenders pay closer attention to age, odometer reading and service history, and may shorten the term on older units. A well-maintained used truck with documented servicing can still present well to financiers. The trade-off is usually price versus term: a used unit costs less upfront, while a new one may spread over a longer period. Comparing both scenarios across lenders helps you see which delivers the repayment that suits your run rates.

What documents help speed up approval?

Having your paperwork ready can make a real difference to turnaround. For most applications, lenders like to see your ABN details, identification, and recent business bank statements. Depending on the lender and loan size, they may ask for BAS, financial statements or evidence of contracts. Low-doc options can reduce this for eligible established operators, though a deposit or equity in a trade-in may be expected. It also helps to have the prime mover details to hand, including the make, model, year and price, plus any dealer or private-sale information. When your file is complete, decisions for eligible applicants can often come through within 24 to 48 hours, subject to lender assessment.

How does a broker help you get a sharper deal?

A single dedicated broker can save you calling lender after lender yourself. Overdrive Truck Finance compares 80+ banks and non-bank lenders on one application, so your profile is matched to the financiers most likely to suit heavy trucks and your circumstances. That matters because appetite for prime movers varies widely between lenders, and the one your bank offers may not be the sharpest for your run. A broker also knows how to structure the application to present your business well, which can influence both approval and pricing. Because the comparison happens once, you avoid multiple credit enquiries while still seeing where competitive offers sit for eligible applicants.

If you are weighing up a prime mover purchase, it costs nothing to see where you stand. Overdrive Truck Finance can provide an obligation-free quote using a soft credit check that does not mark your file, then compare 80+ lenders to find a structure that fits your business. For eligible applicants, decisions can often come through within 24 to 48 hours. Get in touch with Simon Kendrick to talk through your options and get an indicative idea of repayments before you commit to a truck.