When considering the purchase of a trailer, one of the key questions you might have is, ‘How long can you finance a trailer?’
The length of time you can finance a trailer largely depends on the age. While major banks typically prefer financing newer trailers, generally less than 5 years old, other lenders may offer terms for trailers up to 20 years old or even older.
Read on to learn more about the factors that influence trailer financing terms, the types of trailers eligible for financing up to five years, and tips for securing the best financing terms.
Ready to Finance Your Trailer in Australia?
If you’re thinking about financing a trailer, Woodward Finance is your go-to expert. We offer flexible financing options that cater to trailers of all ages, ensuring you find terms that suit your budget and needs.
With our deep understanding of the market and commitment to customer satisfaction, we’re here to guide you every step of the way. Whether you’re hauling equipment, livestock or anything in between, let us help you secure the financing that makes sense for you.
For a personalised consultation or to learn more about our trailer financing options, call us at 0439 313 541 or visit our Contact Us page today. We’re ready to assist you!
Factors Influencing the Financing Term of Trailers
How long you can finance a trailer depends mostly on its age. Most major banks prefer to finance trailers that are less than five years old. This preference is due to the lower risk associated with newer assets that are less likely to encounter mechanical issues.
However, many other lenders offer flexibility by extending financing options to trailers that are up to 20 years old, and sometimes even older. These specialised lenders may evaluate older trailers on a case-by-case basis, considering factors like current condition, maintenance history and market value before offering financing.
Types of Trailers Eligible for Financing Up to Five Years
Various types of trailers can be eligible for financing terms up to five years, even if they are as old as 20 years, are listed below:
Tipper Trailers
Tipper trailers are equipped with a hydraulic tipping mechanism that simplifies the process of unloading heavy materials like soil and gravel. Their robust design and functionality make them ideal for heavy-duty operations.
Box Trailers
Box trailers are versatile enclosed units used widely for transporting goods, equipment, and furniture. They are favoured for their security features and ability to protect contents from weather elements.
Transporter Trailers
Designed specifically for vehicle transportation, transporter trailers feature ramps for easy loading and unloading of cars, motorcycles, and other vehicles. Their specialised nature often requires specific financing considerations.
Flatbed Trailers
Flatbed trailers have a flat surface without sides or a roof, making them versatile for transporting large or irregularly shaped items, construction materials, or machinery.
Newer flatbed trailers might secure longer financing terms due to their high utility and lower risk profile. Older models, while still financeable, may have shorter terms, depending on their condition and market value.
Livestock Trailers
Livestock trailers are designed to transport animals safely and equipped with features like partitions and ventilation to ensure the comfort and security of livestock.
Float & Low Loader Trailers
These trailers are indispensable for transporting heavy machinery like excavators and loaders. They typically have hydraulic ramps or systems for safe loading.
B-Double Trailers
B-double trailers consist of a prime mover pulling two semi-trailers, maximising freight capacity without compromising manoeuvrability. They are a common sight in logistics and long-haul transportation.
Dog Trailers
Dog trailers enhance freight capacity while maintaining flexibility. They are smaller semi-trailers towed by a larger vehicle, commonly used in diversified freight operations.
Tips for Securing the Best Financing Terms
A few clever strategies simplify the process of securing trailer financing. Here are essential tips to help you secure the best terms:
Utilise Your Knowledge of Depreciation
It’s important to know the depreciation rate of the trailer you plan to buy. This depreciation affects the trailer’s value over time and the financing terms you can secure.
Choose the Right Lender
Choose a lender that specialises in the type of trailer you need to finance. Lenders vary in their expertise and willingness to finance older trailers or specific types such as livestock or flatbed trailers. A lender with specialised knowledge in your trailer category typically offers more favourable terms and better understands your trailer’s value.
Maintain a Robust Credit Profile
Your creditworthiness helps you secure favourable financing terms. Make sure your financial records are accurate, up-to-date, and showcase a solid credit history. Lenders are more likely to offer better terms to borrowers who present financial stability and a low risk of default.
Ensure Your Documentation is Thorough
Organise your documents carefully, including proof of income, asset ownership, and a business plan if the trailer serves a commercial purpose. Thorough documentation not only speeds up the financing approval process but also enhances your credibility as a borrower, potentially leading to better financing terms.
Wrapping Up
Knowing the details of trailer financing is important for making a smart choice that fits your budget and needs. Whether you’re buying a new or older trailer, understanding how age and type impact financing can help you get better deals. Make sure to pick the right lender, understand the trailer’s value over time, and keep a good credit score to get the best financing terms.
