BUSINESS LENDING HUB

Can You Refinance an Existing Trailer Loan? 🛻💳

Already got a trailer loan but feel like the repayments are too high — or your situation has changed?

Yes, you can refinance a trailer loan in Australia, and it might be one of the easiest ways to free up cash flow, reduce your interest rate, or adjust your loan term.

Here’s what you need to know.

✅ What Is Trailer Loan Refinancing?

Refinancing means you replace your current trailer loan with a new one — either:

  • With a new lender

  • On better terms (e.g. lower rate, longer term)

  • Or to switch from consumer to commercial finance (if trailer is now used for business)

💡 Why Refinance a Trailer Loan?

  • ✅ Lower your monthly repayments

  • ✅ Get a better interest rate (if your credit has improved)

  • ✅ Extend the loan term to improve cash flow

  • ✅ Consolidate balloon payments or missed instalments

  • ✅ Switch to an ABN-only product for tax benefits

  • ✅ Release security or restructure the loan for asset sales

📋 What Do You Need to Refinance?

Lenders will usually want to see:

  • ✅ A payout figure from your existing lender

  • ✅ Trailer details (value, condition, registration)

  • ✅ Your ABN and ID

  • ✅ Basic financial docs (bank statements or loan history)

Even if you applied as a consumer originally, refinancing through a commercial loan product can open new tax and cash flow benefits.

🔍 When Refinancing Makes the Most Sense

  • 📉 Your current loan rate is above 12–14%

  • ⌛ You’ve paid off part of the loan and want to restructure

  • 📊 Your income or business has improved

  • 🎯 You want to refinance the trailer and add other assets into one new loan

⚠️ Things to Watch Out For

  • ❌ Break fees or early payout penalties from your current lender

  • ❌ Over-financing — don’t refinance for longer than the trailer’s useful life

  • ❌ Negative equity (owing more than the trailer is worth)

  • ❌ Missing out on ABN-only tax benefits if you stay in a consumer loan

That’s why it helps to get advice from a broker before doing anything.

🧠 Why Use a Broker to Refinance?

Brokers can:

  • Access lenders who accept trailer refinance

  • Run the numbers on different structures (with or without balloon)

  • Help reposition your loan as a business asset

  • Avoid overcapitalising or extending unnecessarily

🚀 Ready to Restructure and Save?

If your trailer loan isn’t working for your business anymore, it’s time to refinance. We’ll connect you with a broker who can help you get a better deal — without the paperwork headache.

👉 Start My Trailer Finance Application

 

DISCLAIMER

The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.

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All Your Questions Answered

What is a car loan and how does it work?

A car loan is a finance product where a lender provides funds for you to purchase a vehicle, which you repay over time with interest.

What’s the difference between secured and unsecured car loans?

Secured loans use the car as collateral, often leading to lower interest rates. Unsecured loans don’t, but usually have higher rates.

What loan terms are available for car finance?

Most car loans offer terms from 3 to 7 years. Find out what term suits you best.

How is interest calculated on a car loan?

Interest is based on the loan amount, term, and rate. Fixed-rate loans have predictable repayments, while variable rates can change.

Can I get a car loan for a private sale?

Yes, many lenders accept private sellers. You’ll need to provide extra documents.

Do government employees get lower interest rates on car loans?

Yes — many lenders offer better rates due to your stable income. Explore finance options for government employees.

Can I apply for a car loan while on probation?

Yes. Many workers are approved during probation.

What credit score do I need as a government employee?

A score of 650+ is ideal, but lower scores may still be considered.

Are corporate professionals eligible for low-rate finance?

Yes, especially if you're full-time with strong income.

Can I get car finance with a novated lease?

Yes, many government departments support novated leasing.

Can I get a car loan with no credit history?

Yes, it's still possible to get a car loan with no credit history.

What if I’ve been declined elsewhere?

A broker can help restructure your application for better results.

How do I check my credit score?

Use Equifax, Experian, or Illion for a free check.

Can I get finance if I have a current personal loan?

Yes, if your income supports both loans. A broker will assess your capacity.

What documents do I need to apply?

Typically: ID, payslips, and bank statements.

Can casual workers get car loans?

Yes, if you’ve worked consistently for 6+ months.

Can I apply if I’m self-employed with an ABN?

Yes. Consider a low-doc loan.

Can Centrelink be used as income?

Yes, when paired with PAYG income.

What’s the minimum income to qualify for car finance?

Most lenders prefer $30,000+ annually, but this varies.

Can I apply on a fixed-term contract?

Yes, especially if it’s government-backed.

Can I finance a used car?

Yes, most lenders allow used cars under 10 years old.

Can I get a loan for an SUV or family car?

Absolutely

Can I finance a caravan or motorbike?

Yes

Can I finance an EV or hybrid car?

Yes. You may even qualify for green car loan discounts.

Can I use my car for both work and personal use?

Yes you can.

What is a balloon payment?

It’s a lump sum due at the end of the loan term.

Can I make extra repayments?

Yes, many lenders allow this without penalty.

Can I pay off the loan early?

Yes — ask if there’s an early payout fee.

Is there a deposit required?

Not always.

What loan terms are available?

1 to 7 years is standard.

How long does approval take?

24–48 hours in most cases

Can I apply online?

Yes — most lenders and brokers accept online applications.

Is a broker better than going direct?

Often, yes. They can compare lenders for you.

Can I get pre-approved?

Yes — and it gives you better negotiating power at the dealership.

What happens after I apply?

Your documents are reviewed, and if approved, the lender issues funds to the seller.

Can I get a loan with a visa?

Yes, in some cases. see finance for visa holders here.

Do I need a driver’s licence to apply?

Yes, but learners may qualify with a co-applicant.

Can I apply with someone else?

Yes, joint applications are allowed.

Can I refinance my current car loan?

Yes — it can lower your repayments or get you a better rate.

Can I trade in my old car as a deposit?

Yes, many lenders accept trade-ins toward the deposit.

Can nurses get car finance?

Yes — see nurse-specific finance tips.

Can teachers apply while on contract?

Yes. Read how to get approved.

Do defence personnel get special car loan rates?

Yes, in some cases. Your job security is a major advantage.

Can FIFO government workers apply?

Yes — consistency in income matters more than job location.

Can I apply if I’m on maternity leave?

Yes, especially if you’re returning to work. Here’s how.

Can I use car finance to buy interstate?

Yes — just make sure the seller provides all required documents.

Can I finance a car from an auction?

Yes, but only through select lenders. Ask your broker first.

Will applying hurt my credit score?

Only if you apply to multiple lenders directly. Brokers help protect your score.

Can I get a car loan if I’ve been bankrupt before?

Yes — see bad credit car loan options.

What if I want to upgrade my car before the loan ends?

You can sell the car, pay off the loan early, or refinance.