How it works

You get approved, find the truck you want and the rent-to-own company buys it. You rent the truck from them under an agreed contract, with the option to buy it out along the way.

  • An active ABN and GST registration are generally required
  • New ABNs can be considered
  • Deposits are usually around 10% or one month of rent
  • In some cases there may be no deposit
  • You can potentially refinance later

Get approved first, then find the truck

This is usually the easiest way to do it.

Get an approval and know how much you can spend before you start seriously shopping. If you find a truck first and then apply, sometimes the finance takes longer than expected and you risk missing out.

We also wouldn't recommend paying a dealer deposit until you know the finance is approved and you're comfortable with the rental payments and buy-out figures.

Can a new business get rent to own?

Yes. New ABNs are one of the main reasons people use rent to own.

The amount you're asking for makes a difference. A new business looking for a $20,000 to $30,000 truck can be a very different application to a new business wanting a $200,000 truck.

For a larger amount, you'll normally need to show why the truck makes sense and how the business is going to make the payments. That could include your previous industry experience, confirmed work or contracts, expected income and the overall strength of the application.

How much deposit do I need?

Usually around 10% of the truck price or roughly one month of rent.

That's not a hard rule. There are situations where no deposit may be required, particularly if you're taking on a truck or other asset already owned by the finance company.

Who actually owns the truck?

The rent-to-own company owns the truck while you're renting it.

You make the agreed rental payments and usually have buy-out figures at different points during the agreement. Some structures eventually reduce to a very small final purchase amount.

The exact structure varies between providers, so the important thing is knowing the rental amount, term and buy-out figures before you sign.

What happens if the truck needs repairs?

Repairs are generally your responsibility.

The same normally applies to insurance, servicing, tyres and general maintenance. The finance company may own the truck, but you're operating it as part of your business and are responsible for looking after it.

Why would I use rent to own instead of normal truck finance?

Usually because normal truck finance isn't available to you yet.

A good example is someone starting a new transport business. You might have years of experience driving trucks and work ready to go, but you've only just registered the business.

You need the truck to start earning money, but a traditional lender may want to see trading history first.

Rent to own can bridge that gap.

Can I refinance it later?

Potentially, yes.

A common strategy is to use rent to own to get the truck working, build around 12 months of business history and then look at refinancing the buy-out into conventional truck finance.

By then you may have BAS, bank statements, turnover and a history of making the truck payments. That's a very different finance application compared with a brand-new business on day one.

The simple version

Rent to own isn't usually the cheapest way to buy a truck. It's useful when the truck can start making you money now but you don't yet qualify for conventional finance. Get approved first, understand the buy-out figures and review your finance options once the business has some history behind it.

Frequently asked questions

Yes. You need an active ABN to apply for business rent to own truck finance.

Yes. You will generally need to be registered for GST.

Yes. New ABNs can be considered. The amount you're looking to finance is important. A $20,000 to $30,000 truck may be relatively straightforward, while a new business wanting a $200,000 truck will normally need to show how it expects to generate enough income to make the payments.

Once you're approved, you choose the truck and the rent-to-own company purchases it. You then rent the truck from them under an agreed contract with scheduled payments and buy-out options.

Around 10% of the truck price or roughly one month of rent is common. There can also be no-deposit situations, particularly when the truck is already owned by the finance company.

Not while you're renting it. The rent-to-own company owns the truck until you exercise a buy-out option and ownership is transferred to you.

You generally do. Insurance, servicing, tyres, maintenance and repairs are normally your responsibility while you're renting the truck.

You can, but we normally recommend getting pre-approved first. It gives you a budget to work with and reduces the risk of finding a truck and then waiting for finance approval.

We wouldn't recommend it. Get the finance approved and make sure you understand the rental payments, term and buy-out figures before committing to the truck.

Potentially. Once your business has built some trading history, you may be able to refinance the buy-out amount into conventional truck finance. Approval will depend on your circumstances at the time.