Top tips to finance a work vehicle as a concreter

The finance option that actually suits concreters

A secured car loan through a broker gives you ownership of the vehicle, typically at a lower rate than dealer finance, and lets you claim the interest and depreciation if you're using it for work. You borrow a set amount, the lender takes security over the vehicle, and you own it outright once the loan is paid off.

Dealer financing might look quick, but you'll often pay more over the life of the loan and the terms are built around moving cars off the lot, not around your cash flow as a concreter. A broker can access car loan options from banks and lenders across Australia, compare rates, and structure the loan so it doesn't choke your income during wet weather or quiet months.

Used versus new when you're pouring every day

Most concreters buying a work vehicle are choosing between a three-year-old ute with 60,000 kilometres on it or a brand new model with a full warranty. The used option will cost you less upfront and the loan amount will be smaller, which means lower monthly repayments. The new vehicle gives you reliability and the ability to claim full depreciation if you're running it through your business.

Consider a concreter who needs a dual-cab ute to carry tools, a mixer, screed bars, and a float. They find a three-year-old model for around $45,000. With a 20% deposit and a secured car loan over five years, the repayment sits at roughly $750 per month depending on the rate. They own the ute outright at the end of the term, and because it's registered to the business, they claim the interest as a deduction. That same vehicle brand new might be $65,000, which pushes the repayment over $1,000 per month with the same deposit. The concreter chose the used option because cash flow mattered more than a new car smell, and the three-year-old ute still had another 200,000 kilometres in it.

Balloon payments and why they don't suit most concreters

A balloon payment lets you defer part of the loan to the end of the term, which drops your monthly repayment but leaves you with a lump sum to pay or refinance when the loan ends. It sounds useful when cash is tight, but if you can't pay the balloon when it's due, you're either refinancing at whatever rate is available at the time or selling the vehicle to cover it.

In our experience, concreters who take a balloon payment often regret it because the deferred amount still accrues interest over the life of the loan, and when the balloon is due, the vehicle is older and worth less, but the debt is still there. If you need lower repayments, a longer loan term is usually a clearer option than a balloon.

How lenders assess your income when you're self-employed

Lenders want to see that you can afford the repayment, and for self-employed tradies, that means tax returns, business activity statements, or accountant-prepared financials. If your taxable income is low because you're claiming every deduction, the lender will use that lower figure unless you provide a different declaration or use a low-doc option.

Some lenders will accept a letter from your accountant or use your business income before deductions if you can show consistent revenue. Others will want two years of tax returns and won't budge. A broker knows which lenders will work with concreting income that fluctuates between summer and winter, and which ones will decline you because your June quarter looked quiet.

What a secured car loan actually costs you

The interest rate on a secured car loan for a work vehicle usually sits between 6% and 10%, depending on whether the vehicle is new or used, how much you're borrowing, and what your credit file looks like. A secured loan uses the vehicle as security, which means the lender can repossess it if you don't pay, but it also means the rate is lower than an unsecured personal loan.

If you're borrowing $50,000 over five years at 7.5%, you'll pay roughly $1,000 per month and about $10,000 in interest over the life of the loan. That interest is tax-deductible if the vehicle is used for work, which brings the real cost down. Run the numbers with your accountant before you sign, because the structure matters when you're claiming it.

When refinancing your work vehicle makes sense

If you took out dealer finance two years ago at 11% and you've been paying it down without missing a payment, you can refinance to a lower rate and cut your monthly repayment or shorten the term. Refinancing a car loan works the same way as refinancing a home loan - you're replacing the old loan with a new one at a lower rate or under terms that suit you now.

You'll need equity in the vehicle, which means it has to be worth more than what you owe. If you owe $30,000 and the vehicle is worth $35,000, you've got $5,000 in equity and a lender will refinance it. If you owe $40,000 and it's worth $35,000, you're in negative equity and refinancing won't work until you pay it down.

Buying through your business or in your own name

If you're operating as a sole trader, you can buy the vehicle in your own name and claim the work-related portion as a deduction, or you can buy it through your business if you're a company or trust. Buying it through the business means the vehicle is a business asset, and you can claim depreciation, interest, running costs, and insurance. Buying it in your own name gives you more flexibility if you want to sell it or use it for personal purposes, but you can only claim the percentage you use for work.

Your accountant will tell you which structure makes sense for your situation. The loan structure follows the ownership structure, so if the business owns it, the business takes out the loan. If you own it personally, the loan is in your name.

How your borrowing capacity affects the loan you can get

If you're also carrying a mortgage or an investment loan, the amount you can borrow for a work vehicle will be lower because lenders look at your total debt compared to your income. A concreter earning $120,000 a year with a $400,000 mortgage and $1,200 in monthly loan repayments will have less serviceability for a car loan than someone earning the same amount with no mortgage.

Lenders use a debt-to-income ratio and a serviceability buffer to work out what you can afford. If adding a $1,000 per month car loan repayment pushes you over that buffer, they'll either decline the loan or offer you a smaller amount. Paying down other debts first or consolidating them through a debt consolidation loan can open up more room for the vehicle loan.

The application process and what you'll need

You'll need proof of income, usually two years of tax returns or financials if you're self-employed, plus identification, proof of the vehicle you're buying, and details of any other debts. The lender will run a credit check, value the vehicle, and assess whether you can afford the repayment. If you're approved, they'll send you a loan contract, and once you sign it, they'll pay the seller directly or transfer the funds to you.

The whole process takes anywhere from a few days to two weeks depending on how quickly you provide documents and whether the lender needs anything else. Getting pre-approved before you start looking at vehicles gives you a clear budget and stops you wasting time on something you can't borrow for.

Call one of our team or book an appointment at a time that works for you. We'll compare rates, structure the loan so it fits your income, and get you into the vehicle without the runaround from dealers or banks that don't understand how concreters get paid.

Frequently Asked Questions