Truck Repayments vs Running Costs: How Much Is “Safe” Each Week for Owner-Drivers?
Truck repayments vs running costs for Australian owner drivers – Switchboard Finance
Truckie Finance · Switchboard
It’s easy to say yes to a shiny rig when the weekly repayment sounds “about right” in your head. The real question is whether that number still works after fuel, tyres, rego, tax and home life get paid.
This guide gives you a simple way to work out a safe repayment range for your truck, then plug it into your longer-term fleet plan from What Is Fleet Finance? and the Truckie Hub.
1. Work out your weekly “nut” before you touch the calculator
Before you even look at a finance quote, you want a rough picture of what it costs just to keep the truck and business alive each week.
Think like a business owner, not just a driver of a single Heavy Vehicle. The goal is to see what has to be paid no matter what – even on a slow week.
Here’s a simple way to split your numbers:
| Bucket | Examples | Why it matters |
|---|---|---|
| Truck running costs | Fuel, tyres, servicing, On-Road Costs | These bills come whether or not you feel like driving that week. |
| Business overheads | Insurance, accounting, phone, schedulers | Easy to ignore until something renews or breaks. |
| Tax & savings | Money put aside so BAS and income tax don’t smash you | Skipping this is how good operators end up stressed at tax time. |
Once you’ve added that up, you can see what’s left for truck repayments and your own pay. That’s the base you plug into a simple Cash Flow Forecast instead of running it off vibes.
2. Set a repayment range that still leaves buffer
Once you know your weekly nut, you can work out a repayment range that leaves room for bad weeks, breakdowns and home life.
Instead of chasing the biggest truck you can technically get approved for, we look at a repayment that feels safe against your actual work pattern and contracts.
Here’s a simple way to think about it (numbers are rough – the idea is the split):
| Bucket | Rough share of weekly income | What it covers |
|---|---|---|
| Running & overheads | ~40–50% | Fuel, tyres, services, rego, insurance and other fixed bills. |
| Truck repayments | ~20–30% | Main truck repayment, maybe a second truck in future. |
| Tax, savings & you | ~20–40% | Money for BAS, emergencies and actually paying yourself. |
If your truck repayment wants to climb over that middle band, we slow things down and look at smarter ways to structure the deal using Low Doc Asset Finance and your approval plan from Get Approved for Fleet Finance.
We also think about what happens when you add a second truck later, using the lessons in Why Managing Multiple Vehicle Loans Can Kill Your Cash Flow so today’s repayment doesn’t block tomorrow’s growth.
3. Use finance tools to smooth the spikes, not stretch the truck loan
When cash gets tight, a lot of truckies try to fix everything by stretching the truck loan or pushing payments out. That can actually make life harder later.
A cleaner way is to keep the truck deal solid, then use cashflow tools around it to handle spikes – things like repairs, tax time and long debtor days.
That’s where your wider Business Cashflow System comes in, using tools like working capital facilities and trade finance instead of flogging the one truck loan.
| Tool | What it can help with | Why it supports the truck loan |
|---|---|---|
| Short-term cash buffer | Small facility to cover repairs or big service weeks | Stops you missing truck repayments when a sudden bill lands. |
| Staying on top of tax | Putting money aside each week for BAS and income tax | Less chance of tax bills forcing you into panic finance later. |
| Cleaner future upgrades | Planning next rig using Low Doc Vehicle Finance | Makes it easier to upgrade on time instead of waiting until everything is breaking. |
We’ll also keep an eye on how the bank will view your repayment pattern and Loan Servicing history before the next upgrade, using your track record to support better terms when you add trucks.
That way, your repayment plan isn’t just “can I cover it this week?” – it becomes a story that helps your future approvals as well.
All of this sits inside a bigger plan to keep your business and home life steady, not just your next truck purchase. If you want a hand running your numbers, we can walk through it with you one-on-one using the tools in the Truckie Cashflow System and our local Business Loans options.
How do I know if a repayment is affordable for my truck business?
A good start is to look at your income, costs and the lender’s view on Affordability. If the repayment fits comfortably after fuel, bills and home life, and you can still save a bit, you are in a much safer zone than just “hoping” it works.
Do lenders look at my working capital when assessing a truck loan?
Yes, they care about how much headroom you have, not just the truck itself. Clean cash in the business and a bit of Working Capital behind you helps show you can handle slow weeks without falling behind.
Can a business line of credit help with fuel and repairs?
Used properly, a Business Line of Credit can take the sting out of big fuel, tyre or repair weeks. The trick is to keep limits sensible and pay it back as cash comes in, instead of treating it like free money.
What if my customers are slow to pay their invoices?
If debtors are often late, tools like Invoice Finance can sometimes help smooth cashflow by turning invoices into earlier cash. That can make it easier to keep repayments on time while still covering day-to-day bills.
Where can I learn more about fuel tax and truck deductions?
For general information, many operators check the ATO’s guidance on Fuel Tax Credit and truck-related Tax Deduction rules on the main ATO website at ato.gov.au. Your accountant can then tailor it to your situation.
