You’ve found the prime mover.
Late model.
Good kilometres.
The specification suits the work.
Purchase price:
$335,000.
You already know roughly what the finance repayment might look like.
So the question seems straightforward:
“Can I afford $335,000?”
But for a transport operator, that’s not really the question.
The better question is:
“What does this prime mover need to earn every week before it becomes worthwhile owning?”
Because financing the truck is only one part of the cost of putting another prime mover on the road.
For a Wagga Wagga transport operator moving freight across regional New South Wales, Victoria or interstate, a truck can generate substantial revenue.
It can also consume substantial cash.
Before committing to the finance, understand both sides.
Start With the Work, Not the Truck
This is particularly important when someone has fallen in love with the asset.
You’ve found:
the right brand,
the right horsepower,
the right sleeper,
the right kilometres,
the right colour,
and the right specification.
Great.
Now put the advertisement aside for ten minutes.
What work will it actually do?
Is it:
linehaul?
general freight?
grain?
livestock?
refrigerated freight?
container work?
construction materials?
regional distribution?
heavy haulage?
The truck should be purchased for the job.
Not the other way around.
Wagga Wagga Transport Example
Imagine a Wagga Wagga operator.
The business already runs two prime movers.
A customer has offered enough additional work to justify a third.
The operator finds a suitable prime mover for:
$335,000.
Expected annual kilometres:
200,000.
Expected revenue from the truck:
approximately $42,000 per month.
At first glance:
$42,000 revenue.
Truck repayment maybe several thousand dollars a month.
Looks good.
But the finance repayment isn’t the operating cost.
Start Building the Real Monthly Cost
Let’s use simplified figures purely to demonstrate the calculation.
Revenue:
$42,000 per month
Now consider:
Driver employment costs: $10,000
Fuel: $12,000
Truck finance: $6,000
Insurance and registration allocation: $1,800
Maintenance and tyres provision: $2,500
Tolls, communications and other operating costs: $1,500
That’s approximately:
$33,800 per month.
Potential amount remaining before other business overheads and tax:
$8,200.
Now we’re having a useful conversation.
Don’t Treat These Figures as a Benchmark
Your numbers may be completely different.
Fuel depends on:
distance,
load,
route,
truck,
driving conditions,
and fuel pricing.
Driver costs vary.
Insurance varies.
Maintenance varies enormously.
Finance depends on the transaction.
The point isn’t that a prime mover costs exactly $33,800 per month.
The point is that you should know your number.
Revenue Can Make a Truck Look More Profitable Than It Is
Someone says:
“That truck will bring in half a million dollars a year.”
Sounds fantastic.
But if operating it costs:
$450,000,
that’s a very different business proposition from a truck generating $500,000 while costing $320,000 to operate.
Turnover doesn’t pay you.
Margin does.
Calculate the Truck as Its Own Little Business
One useful way to think about another prime mover is as a small business inside your existing business.
It has:
revenue,
fuel,
driver costs,
finance,
maintenance,
insurance,
registration,
and overhead.
Ask:
Does this truck make money after paying for itself?
What Revenue Is Actually Guaranteed?
Perhaps a customer tells you:
“We’ve got plenty of work.”
That’s encouraging.
But how much?
Ask:
How many loads?
What rate?
What distance?
How often?
For how long?
What are the payment terms?
Is there minimum volume?
A $335,000 truck shouldn’t be purchased solely because someone says:
“Don’t worry, we’ll keep you busy.”
What if the Work Is Under Contract?
That’s stronger information.
Send us the contract or relevant evidence of the work if available and appropriate.
We may want to understand:
contract term,
expected revenue,
commencement date,
customer,
and payment arrangements.
A lender may also require information depending on the applicant and transaction.
What if There’s No Formal Contract?
That doesn’t automatically mean finance isn’t possible.
Transport businesses often operate through:
ongoing customer relationships,
subcontract arrangements,
regular routes,
purchase orders,
or less formal arrangements.
Tell us the real situation.
Don’t manufacture certainty that doesn’t exist.
Existing Work Can Be Powerful Context
Suppose you’ve worked for the same customer for:
six years.
They’ve gradually increased the amount of freight you’re carrying.
Now your existing trucks are at capacity.
You’re buying another prime mover to handle work you’re currently turning away.
That’s commercially different from:
“I bought another truck and now I need to find work for it.”
Don’t Buy Capacity and Hope Revenue Appears
This is one of the biggest distinctions in fleet expansion.
Buying another truck because:
you have work
is different from buying another truck because:
you want more work.
Sometimes speculative expansion works.
But understand the risk.
A financed prime mover sitting in the yard still has repayments.
How Many Kilometres Will It Actually Run?
Estimate this carefully.
Suppose the truck is expected to travel:
4,000 kilometres per week.
Across 48 working weeks, that’s approximately:
192,000 kilometres per year.
Now calculate:
revenue per kilometre,
fuel consumption,
maintenance,
driver costs,
and finance.
This gives you a much clearer view than annual turnover alone.
Empty Kilometres Still Cost Money
The truck doesn’t stop consuming fuel because the trailer is empty.
If a route has significant dead running, include it.
Suppose:
loaded trip: 700 kilometres
return empty: 700 kilometres
You aren’t operating a 700-kilometre job.
The truck is travelling:
1,400 kilometres.
Price the work accordingly.
Backloads Can Change the Economics
If you can secure a paying backload, the same truck movement can become considerably more productive.
That’s an operating issue rather than a finance issue.
But it affects whether the asset makes commercial sense.
The lender finances the truck.
The freight economics repay it.
Fuel Is One of the Numbers You Need to Stress-Test
Suppose your calculations work at today’s diesel cost.
What happens if fuel increases?
Can rates be adjusted?
Is there a fuel levy?
Does the customer contract allow it?
If not, the business may absorb the increase.
A truck purchase with a thin margin can become uncomfortable quickly.
Don’t Forget AdBlue and Other Running Costs
The large expenses get attention.
The smaller recurring expenses add up.
Build a realistic operating model.
That doesn’t mean forecasting every dollar.
It means avoiding a calculation where the only costs are:
truck repayment + diesel.
Driver Costs Are More Than the Wage
If you’re employing a driver, consider the complete employment cost applicable to your business.
That may include:
wages,
superannuation,
workers compensation,
leave,
allowances,
and other employment obligations.
Speak with your accountant, payroll adviser or other appropriate professional where necessary.
The truck doesn’t operate without the person.
What if You’re Driving It Yourself?
Then don’t pretend your labour is free.
Owner-drivers sometimes calculate:
Revenue minus fuel minus truck repayment = profit.
But you still need an income.
The business needs to compensate you for:
driving,
managing customers,
administration,
and the commercial risk you’re taking.
If the truck only works because your labour is valued at zero, rethink the numbers.
Wagga Wagga Owner-Driver Example
Suppose an experienced driver wants to become an owner-driver.
Prime mover:
$210,000.
Expected gross revenue:
$30,000 per month.
The driver calculates:
Fuel: $9,000
Truck repayment: $4,500
Other costs: $3,000
Therefore:
$13,500 left.
Sounds excellent.
But now include:
personal income requirement,
tax,
superannuation planning,
maintenance provision,
downtime,
administration,
and other business costs.
The picture changes.
Still potentially viable.
But now it’s realistic.
Maintenance Isn’t Optional
A prime mover working hard will need maintenance.
Don’t budget:
$0
because the truck has just been serviced.
Maintenance isn’t a surprise.
The timing is the surprise.
Build a provision into the operating numbers.
Tyres Need Their Own Thinking
A complete tyre replacement can be a significant cost.
The more kilometres the truck runs, the faster those future expenses arrive.
Again, the finance repayment isn’t the only recurring cost of the asset.
What About Major Repairs?
Suppose the truck needs:
engine work,
transmission work,
after-treatment repairs,
or another substantial repair.
Can the business absorb it?
Does it have cash reserves?
Would the truck being off the road interrupt a critical contract?
The harder the truck works, the more important contingency planning becomes.
Downtime Has Two Costs
First:
the repair bill.
Second:
the lost revenue.
A truck can cost the business money while simultaneously not earning money.
That’s why an apparently cheaper older prime mover may not always be the cheaper commercial option.
This Connects Back to New Versus Used
We covered this earlier in the truck journey.
A used truck can save substantial money upfront.
But compare:
purchase price,
remaining useful life,
maintenance,
downtime risk,
fuel economy,
and expected replacement timing.
Prime mover finance should support the right asset.
Not simply the cheapest purchase.
What About a Brand-New Prime Mover?
Suppose the new truck costs:
$390,000.
The used alternative costs:
$275,000.
That’s:
$115,000
difference.
The new truck may potentially offer advantages such as:
warranty,
lower kilometres,
newer technology,
and potentially different maintenance expectations.
But those benefits need to justify the additional capital cost for your business.
Don’t assume new is better.
Don’t assume used is smarter.
Calculate.
Specification Matters More Than Price
A cheap prime mover with the wrong specification can be an expensive mistake.
Consider whether the truck is appropriate for:
the loads,
routes,
trailers,
terrain,
and work you actually perform.
A lender approving the purchase doesn’t mean the truck is operationally suitable.
That’s your decision.
What About the Trailer?
This is where prime mover finance often becomes a bigger transaction.
You have the truck.
But do you have the trailer required for the work?
Suppose:
Prime mover: $335,000
Trailer: $155,000
Total:
$490,000.
Tell us from the beginning.
Don’t finance the prime mover and then call a week later saying:
“I forgot I need $155,000 for the trailer.”
Truck and Trailer May Be Part of One Commercial Requirement
Depending on the transaction and lender, there may be ways to consider multiple related assets.
We need to know:
what you’re buying,
from whom,
when each asset is required,
and how the purchases relate.
The next articles in this journey will go deeper into truck-and-trailer packages and multi-asset purchases.
What if the Body Has to Be Built?
Perhaps you’re purchasing:
cab chassis,
then having a body installed separately.
Now there may be:
multiple suppliers,
multiple invoices,
and potentially different settlement stages.
Tell us before ordering.
Finance for a completed truck transaction can look different from a build involving chassis, body and ancillary equipment.
What if You Need a Crane or Refrigeration?
Same issue.
The real asset requirement may be:
truck,
body,
crane,
hydraulics,
refrigeration,
or other equipment.
Don’t tell us only the chassis price.
We want the complete project.
Your $335,000 Truck Could Become a $500,000 Project
For example:
Prime mover: $335,000
Trailer: $125,000
Ancillary equipment: $20,000
Setup: $10,000
Total:
$490,000.
And then the business still needs operating cash.
That’s why early planning matters.
Don’t Put Every Available Dollar Into the Assets
This connects with the Townsville article.
Suppose the business has:
$140,000 cash.
It could contribute:
$100,000
to the truck and trailer.
But then only:
$40,000
remains.
If the new operation requires:
fuel,
wages,
insurance,
registration,
and several weeks waiting for customer payments,
$40,000 may disappear quickly.
The Prime Mover Needs Working Capital to Move
A financed truck without operating cash isn’t much use.
Before deciding the deposit, calculate:
what the truck needs to earn
and
what the business needs to spend before receiving that revenue.
Customer Payment Terms Matter
Imagine the truck generates:
$10,000 per week.
Fantastic.
But the customer pays:
45 days after invoice.
The business could have substantial invoices outstanding while continuing to fund:
fuel,
wages,
and finance repayments.
That working-capital requirement needs to be planned.
Invoice Finance May Potentially Be Relevant
For businesses with suitable eligible commercial invoices, invoice or debtor finance may potentially help bridge the gap between invoicing customers and receiving payment.
That’s why our invoice-finance journey logically connects with truck finance.
A transport business may need:
asset finance to acquire the prime mover
and
working capital to operate it.
They’re different finance problems.
Don’t Use the Wrong Finance for the Wrong Job
If you need:
$335,000 for the prime mover
and
$70,000 working capital,
tell us.
Don’t automatically try to squeeze both requirements into whichever finance option appears first.
Asset finance and working-capital finance can have different purposes and structures.
What if You’re Replacing a Prime Mover?
Then we need the existing truck details too.
Tell us:
estimated sale or trade value,
current finance payout,
and whether the existing truck needs to remain operational until the replacement arrives.
Changeover Timing Can Matter
Perhaps the new truck won’t arrive for:
three months.
You can’t sell the existing truck today because you need it earning revenue.
Now the timing of:
order,
finance approval,
delivery,
trade,
and settlement
needs to be coordinated.
What if the Existing Truck Has Positive Equity?
Example:
Trade value:
$145,000
Finance payout:
$85,000
Potential difference before other costs:
$60,000.
You may have equity available.
Do you put all $60,000 into the replacement?
Maybe.
Or perhaps the business should retain some cash.
Look at the full position.
What if You’re Upside Down?
Existing truck value:
$100,000
Finance payout:
$130,000.
Potential shortfall:
$30,000.
Tell us immediately.
Don’t wait until settlement.
The replacement transaction needs to account for the existing finance position.
What if You’re Adding Rather Than Replacing?
Then we’re looking at fleet expansion.
Now the business carries:
the existing truck costs
plus
the new truck costs.
The new revenue needs to support the additional asset.
This is why the work behind the purchase matters.
Don’t Confuse Approval With Affordability
A lender may determine that a transaction fits its credit criteria.
That doesn’t replace your own commercial decision.
You still need to decide:
whether the freight rate is sufficient,
whether the work is reliable,
whether the truck suits it,
and whether the business will make enough money.
Finance approval answers one question.
It doesn’t answer all of them.
What About the Loan Term and Balloon?
We covered this in the previous Tamworth article.
The prime mover’s expected:
annual kilometres,
ownership period,
and replacement cycle
should help inform how you think about the finance term and any balloon.
A truck running:
200,000 kilometres a year
may have a different replacement strategy from one travelling:
80,000 kilometres.
Think About the Exit Before You Buy
Ask:
When will I replace this truck?
What might still be owing?
How many kilometres might it have?
What condition do I expect it to be in?
Will it have a useful place elsewhere in the fleet?
You don’t need exact answers.
But you should have a plan.
What if the Work Disappears?
This is uncomfortable but important.
Suppose the customer cancels the contract.
Can the truck:
move onto another route?
work for another customer?
replace an older truck?
be sold?
A versatile prime mover with multiple potential uses may give the business more options than a highly specialised asset.
Customer Concentration Can Matter
Suppose one customer will generate:
70% of the new truck’s work.
Maybe that customer is excellent.
Maybe you’ve worked with them for a decade.
Still understand the concentration.
If they disappear, the finance repayment doesn’t.
Wagga Wagga and Regional Freight
Wagga Wagga sits in an important regional position between major markets and supports substantial agricultural, industrial and distribution activity.
Transport businesses operating through the Riverina can be moving:
grain,
livestock,
food products,
agricultural inputs,
machinery,
construction materials,
and general freight.
The right prime mover depends on the work.
And the right finance structure depends on what that truck is expected to produce for the business.
Before You Ask “What’s the Repayment?”
Work out:
expected weekly kilometres,
expected weekly revenue,
fuel,
driver costs,
maintenance provision,
insurance,
registration,
other operating expenses,
and the likely truck-finance commitment.
Then stress-test it.
What happens if:
fuel rises?
revenue falls 10%?
the truck loses a week to repairs?
a customer pays late?
If the truck still makes commercial sense, you’re starting from a much stronger position.
Found a Prime Mover?
Send Thrive Broking:
the truck advertisement or invoice
purchase price
year and kilometres
expected annual kilometres
what freight or work it will perform
expected revenue
whether you’re replacing or expanding
details of any trade and finance payout
how much cash you want to contribute
and
whether you also need a trailer, body or other equipment.
If the purchase is connected with a new contract, tell us about that too.
We’ll investigate the finance around the actual commercial requirement rather than looking at a $335,000 truck as though the repayment is the only number that matters.
A prime mover doesn’t become affordable because the finance repayment fits the bank account. It becomes commercially worthwhile when the work it performs can support the truck, its operating costs and the business behind it.