Truck Cost Guide

What a truck really costs is the purchase price plus everything it takes to run it, minus what you get back when you sell it. Operators who price only the purchase often find a cheaper truck was the more expensive one to own. This guide explains each part of the cost and how to put them together.

What drives the purchase price

• Size and type: a light delivery truck, a medium rigid with a pantech body and a heavy-duty road train prime mover sit in very different price brackets.
• New or used: trucks lose the most value in their first few years. See new vs used trucks.
• Age, kilometres and hours: and, just as important, the type of work the truck has done.
• Make and model: brands with strong resale, such as Kenworth in heavy haulage or Isuzu in light trucks, cost more to buy and return more when sold.
• Body and equipment: a crane, fridge unit, tipper body or tailgate loader can add a large share of the price.
• Condition and history: a full service history and recent major work support a higher price.

The best guide to current prices is the market itself: compare similar trucks on Aus Truck Market by year, kilometres and specification.

On-road and upfront costs

• GST: dealer prices usually include GST; check whether a private seller's or business seller's price does. GST-registered businesses can usually claim the GST back.
• Stamp duty on registration transfer, which varies by state and vehicle.
• Registration: heavy vehicle registration charges vary by vehicle type and axle configuration.
• Roadworthy or inspection certificate where your state requires one.
• Pre-purchase inspection and PPSR search.
• Transport if the truck is a long way from you.
• Immediate repairs and servicing found at inspection, plus signwriting and fit-out.

Finance costs

If you finance the truck, interest and fees are a real cost. A larger deposit, a shorter term and a smaller balloon payment reduce the total interest paid, at the cost of higher repayments. The truck finance guide explains the options.

Running costs

For most trucks that work every day, running costs over the years of ownership add up to more than the purchase price. The main items are fuel, tyres, servicing and repairs, registration, insurance, AdBlue and, for some operators, tolls and permits. Our truck running costs guide covers each one.

Depreciation and resale

Depreciation is the difference between what you pay and what you sell for. It is often the largest single cost of owning a newer truck, and it is driven by the brand's resale strength, the specification (popular specs sell more easily), kilometres and condition. Looking after a truck and keeping a full service history is the cheapest way to reduce it.

Putting it together: cost per kilometre

To compare trucks fairly, estimate the total cost over the period you expect to own each one and divide by the kilometres it will do:

1. Add the purchase price, upfront costs and total finance cost.
2. Add estimated running costs for each year you will own it.
3. Subtract the estimated resale value at the end.
4. Divide by the total kilometres (or hours) over that period.

The result, cost per kilometre or per hour, is what you need to cover in your rates before you make any profit. It also makes the trade-offs clear: a dearer truck that uses less fuel and holds its value can easily come out cheaper.

Tax

Businesses can usually claim GST credits, depreciation and running costs, and businesses using heavy vehicles on public roads may be able to claim fuel tax credits. The rules and thresholds change, so talk to your accountant before you buy. This guide is general information, not financial or tax advice.