Truck Sale and Leaseback

Key highlights

• Unlock capital from owned trucks and trailers while they keep hauling
• Well suited to transport, logistics and owner-driver operators
• Fund fuel, wages, maintenance, growth or a pressing tax bill
• Compare leaseback against unsecured and secured funding at once
• Ask your accountant how repayments and any tax effects apply

Releasing capital from your trucks

Trucks represent serious value, and once a rig is paid off, that value sits locked in the fleet. Truck sale and leaseback releases it: a financier buys the trucks and trailers you own outright, pays you a lump sum, and leases them straight back so your fleet keeps hauling. The released cash becomes flexible working capital for fuel, wages, maintenance, growth or other pressing needs. This suits transport operators who have equity in their trucks but need liquidity more than additional vehicles. How much you can raise depends on the fleet's market value, age, kilometres and condition, and on lender assessment. As always, amounts and terms are indicative and subject to lender criteria, so comparing options before committing is sensible.

Trucks and trailers that suit leaseback

Lenders generally favour trucks and trailers that are identifiable, well maintained and retain solid market value. Common examples include prime movers, rigid trucks, tippers, curtain-siders, refrigerated units, and a range of trailers. The equipment usually needs to be owned outright, in good working order, and with reasonable age and kilometres. Very old, high-mileage or heavily specialised units may attract less appetite or a lower advance, since they are harder to value and resell. Because financiers assess heavy vehicles differently, one may offer considerably more than another against the same fleet. Comparing the market helps you secure the strongest structure, and approaching many lenders at once tends to surface options a single financier would not offer on its own.

How transport operators use the funds

Transport cash flow is notoriously tight, with fuel, tolls, maintenance and wages due long before customers pay their invoices, often on 30 to 60-day terms. The capital from a truck leaseback helps bridge that gap. Operators commonly use it to fund fuel and running costs through a busy stretch, cover major maintenance or tyres, pay drivers on time, take on a larger contract that needs upfront outlay, or settle a pressing supplier or tax obligation. Some use it to fund genuine fleet expansion or to keep a line of credit free for emergencies. Because the funds are unrestricted, you decide where they help most. Weigh the repayment commitment against the benefit before deciding whether it fits your operation.

Leaseback alongside other transport funding

Truck leaseback is one of several ways transport businesses raise working capital. An unsecured business loan needs no asset and funds quickly, but is usually capped around $500,000 and priced higher. A secured loan against property can access larger amounts at keener rates. A line of credit gives flexible, draw-as-needed funding for fluctuating running costs, while invoice finance unlocks cash from unpaid freight invoices, which suits many operators well. Leaseback specifically monetises owned trucks. The best fit depends on what you own, how steady your contracts are, and how much flexibility you need. Comparing total cost, term and conditions across several lenders gives the clearest view, which is exactly where seeing the whole panel on one application helps.

Eligibility and lender considerations

To arrange a truck sale and leaseback, lenders generally want an active Australian ABN, evidence you own the trucks outright, and a current valuation. Most look for a minimum trading history, often around six to twelve months, and consistent turnover that comfortably covers the repayments. Low-doc pathways may accept bank statements or BAS instead of full financials for some applicants. Your credit profile, existing commitments and the fleet details all shape the offer and the advance. Because each lender applies its own criteria, the same application can produce different outcomes across the market. Everything here is indicative and subject to a full assessment, so treat it as a guide to what to expect rather than a fixed outcome for your transport business.

How much and how quickly

Across the funding we compare, indicative amounts range from around $5,000 up to $5 million, with a truck leaseback advance driven by the fleet's value and lender appetite. Terms commonly run from a few months to five years. For eligible applicants, some facilities can move quickly, with same-day pre-approval and funds potentially within 24 to 48 hours, though a formal valuation may add a little time. Pricing spans a wide band: rates start from around 7.49% p.a. for stronger secured facilities, with unsecured and short-term products higher depending on turnover, term, security and profile. All figures are indicative and subject to lender criteria and assessment, so compare carefully before you decide.

If your trucks are paid off but running costs are squeezing cash flow, a truck sale and leaseback could unlock capital while keeping your fleet on the road. Overdrive Business Loans compares more than 80 banks and non-bank lenders on one application, so you can weigh leaseback against unsecured, secured, line-of-credit and invoice finance options and choose what fits. Simon Kendrick will walk you through the numbers and any commitment, with an obligation-free quote and only a soft credit check to start, so your score stays intact. For eligible applicants, funding may be arranged within 24 to 48 hours. Get in touch for a no-pressure chat, and check with your accountant about how any leaseback affects your tax position.