Used Commercial Vehicle Loan

A used commercial vehicle lets an operator add capacity at a fraction of the cost of new. It is a well-established market, and specialist financiers understand it far better than mainstream banks do.

How the amount is set

By an independent valuation, not by the asking price. The valuer assesses the model year, the kilometres run, the engine and body condition, and the tyre position. Funding is usually 60% to 75% of the assessed value, and vehicles are generally accepted up to ten to twelve years of age at purchase.

Check the papers before the vehicle

A used commercial vehicle carries paperwork a car does not: the national or state permit, the fitness certificate, the pollution certificate and the road tax position. An expired permit or a lapsed fitness certificate can be expensive and slow to regularise, and the vehicle cannot legally earn until it is sorted. Verify all of this on the Parivahan portal before you commit.

Where the value really sits

Engine condition and tyre life. A set of truck tyres is a substantial cost, and a vehicle sold with worn tyres is effectively priced higher than it looks. Get a mechanic who knows that make to inspect it properly.

Rates in this segment

Higher than for a new vehicle, typically 13% to 20%, reflecting the harder valuation and quicker depreciation. Tenures are shorter, usually up to four years.

Where we help

We work with financiers who specialise in used commercial vehicles, arrange the valuation early, and check the permit, fitness and hypothecation position before you pay anything.