Tipper finance is a business loan for a tipper truck, with the truck as the security. Most operators use a chattel mortgage over five years. A new rigid tipper for an established business sits around 7.5% to 9% p.a. At 8%, that is about $5,070 a month on $250K.
The short version
- Lenders price a tipper like any rigid truck. The 1% to 4% some lenders add for a prime mover does not apply.
- The age of the truck moves your rate the most. A 12-year-old tipper costs about 2% to 3% more than a new one.
- A truck and dog usually needs full financials. Many low doc loans stop at $250K.
- Owning a home gets you more lenders and a lower rate.
What it costs
Five-year chattel mortgages with no deposit. These rates are examples only, and lender fees are extra.
| The deal | Borrowed | Rate | Per month | Per week |
|---|---|---|---|---|
| New small tipper, under 4.5t | $90,000 | 7.5% | $1,803 | $416 |
| New rigid tipper | $250,000 | 8% | $5,069 | $1,170 |
| Same tipper, 30% balloon | $250,000 | 8% | $4,048 | $934 |
| Used rigid tipper, 6 years old | $150,000 | 9.5% | $3,150 | $727 |
| Older tipper, 12 years old, private sale | $90,000 | 11% | $1,957 | $452 |
| New truck and dog | $550,000 | 8.5% | $11,284 | $2,604 |
The balloon cuts the new tipper's repayment by about $1,020 a month. You then owe $75,000 at the end, and pay about $13,800 more in total. Our guide to balloon payments covers when that is worth it.
For more loan sizes and terms, see truck finance repayments.
What moves your rate
The truck's age
- New: around 7.5% to 9%.
- 5 to 9 years old: around 8.5% to 10%.
- 10 years and older: around 9.5% to 12%.
A private sale usually adds 0.25% to 1%, and up to 2% at a few lenders.
Lenders also check how old the truck will be when the loan ends. Most will go to 20 or 25 years, but the rate goes up once it passes 10 or 15. A few will not take a truck over 10 to 12 years old at all.
Your ABN
Two years of trading gets the best rates. Low doc usually needs one to two years of trading, and some lenders want three.
On a new ABN, fewer than a third of our lenders will write a used tipper. Expect around 10% to 13%, and often a 15% to 20% deposit. If you do not own a home either, only a few lenders will look at it, and most want 20% down.
Owning a home
Without a home behind you, expect about 1% to 1.5% more on the same truck. Several lenders also want 20% down, and some cap the loan at $75K to $100K.
Small tippers
A tipper under 4.5t GVM is priced like a ute or van. More lenders will write it, and rates start around 7% for a new one.
Truck and dog finance
The truck and the dog trailer can go on one loan, or on two.
Many low doc loans stop at $250K, and very few go past $500K. A new truck and dog often goes over that, so expect to give two years of financials and tax returns. Some lenders cap a single deal at $250K to $500K, so fewer will write it. The ones that go higher want to see the business can carry the repayment.
Some lenders let a trailer run older than a truck, up to 25 or 30 years old at the end of the loan.
Balloons on a tipper
A balloon is easy to get on a new tipper. It gets harder as the truck gets older. Some lenders drop the balloon once the truck will be over 10 years old at the end of the loan. Another only offers one on gear up to four years old.
If you want a balloon on a used tipper, ask before you pick the truck.
What lenders want to see
The work
A lender wants to know the tipper has work to pay for it. Any of these helps:
- A contract with a civil contractor, council or quarry.
- A letter from the head contractor with your hourly or per-load rate.
- Recent invoices showing regular work.
If all your work comes from one contractor, expect to be asked what happens if that work ends.
Your history
Show you have run tippers or plant before. Have your work history ready: who you worked for, what you ran and for how long.
The paperwork
- Your ABN and GST registration.
- Recent BAS, or a letter from your accountant for low doc.
- Two years of financials and tax returns for full doc.
- The truck details: a dealer quote or invoice, or the seller's details for a private sale.
For a private sale, the lender will want an inspection and a PPSR check for any finance the seller still owes.
Tax on a financed tipper
Under a chattel mortgage, you own the tipper from day one. If the price includes GST, you claim it back on your next BAS. On a $250K tipper that is about $22,700.
For a truck over 3.5t GVM, a cap in the tax law lets you depreciate it over 7.5 years at most. See the ATO's guide to depreciation. The interest in each repayment is deductible too. Check the details with your accountant before you sign.
If you are buying an excavator or loader as well, our guide to excavator and construction equipment finance covers the machine side. For deposits, see truck finance deposits. We arrange tipper finance as part of our asset finance work for transport and logistics and trades businesses.
If you have a tipper in mind, send us the truck details and how long you have been trading. We will tell you which lenders will write it and what it should cost. Start an application. It takes under a minute, and most enquiries get a response within four business hours.