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Purchasing a used commercial truck can be a smart move for Canadian owner-operators and fleet managers looking to expand capacity without the high cost of a brand-new rig. But even secondhand trucks come with significant price tags—often between $30,000 and $150,000 depending on the model, mileage, and condition.
That’s where truck financing comes in. In this guide, we break down everything you need to know about securing financing for a used truck in Canada, from loan options and lender expectations to approval tips and the best way to prepare for your purchase.
Used truck financing gives businesses access to essential equipment without tying up cash reserves. Whether you’re buying your first Class 8 highway tractor or upgrading part of your fleet, financing offers the flexibility to preserve working capital while spreading costs over time.
You can explore a wide range of equipment loan options tailored to your business size and risk profile.
While used trucks are typically more affordable than new ones, lenders still need to manage risk. Here are some of the most common criteria financial institutions consider when reviewing a truck financing application:
Most lenders require at least 1–2 years of operating history. This helps demonstrate business stability and repayment ability. Startups can still qualify but may require a stronger personal credit profile or co-signer.
A personal or business credit score above 650 improves your chances of approval. Lower scores may still be accepted, but expect shorter terms or higher rates.
If your credit isn’t perfect, consider reviewing options like bad credit financing or adding a co-signer.
Lenders usually prefer trucks under 10 years old with less than 1,000,000 km. That said, some programs will still finance older or high-mileage trucks if they’ve been maintained properly.
A standard down payment is 10%–20%, but this varies. If you're looking to reduce the upfront burden, you might explore options like equipment line of credit or sales leaseback.
Lenders want to know the asset’s use. Highway trucks, dump trucks, and vocational units all come with different risk profiles. Specialized trucks may require a more detailed application or asset review.
For tailored support, see Mehmi's heavy-duty truck expertise.
There are several loan and lease types that can help you finance a used commercial truck. Each has pros and cons depending on your business model and cash flow.
A traditional loan to purchase the truck outright. You make monthly payments over a fixed term and own the truck at the end.
Learn more about equipment loans
You lease the truck and make monthly payments. Ownership transfers after final payment or buyout.
Explore our equipment lease options
If you already own a truck, you can sell it to the lender and lease it back. This frees up capital while maintaining truck access.
Read more on sales-leaseback programs
If you’re buying a truck that needs work, some lenders also offer repair financing to cover post-purchase upgrades.
While terms vary depending on the lender and borrower profile, here’s what to expect for a typical used truck loan in Canada:
Use the loan calculator to estimate your payments.
Before you apply, be ready to provide:
For more, visit the FAQ page or talk to our advisors.
A trucking business owner with one year of experience and a 610 credit score needed to purchase a 2018 Freightliner Cascadia. The truck had 900,000 km and was listed for $72,000.
They were initially declined by a major lender but secured financing through an alternative loan program. Mehmi structured the deal using a 30% down payment, 48-month term, and interest-only payments for the first 3 months to help ease cash flow.
Despite their low credit, the client was approved due to their strong deposit, proven monthly revenue, and clean truck inspection.
If you want to boost your approval odds and get the best terms, follow these strategies:
Review your personal and business credit reports and resolve any outstanding issues.
A 15%+ deposit shows lenders you're serious and reduces their risk.
Don’t hide past credit issues—many lenders will work with you if the rest of your application is strong.
Select a truck under 10 years old with clean maintenance history. Avoid units with salvage titles or unknown repairs.
Apply for pre-approval before shopping so you know your budget and negotiating power.
Can I get financing with bad credit?
Yes, some lenders offer financing options for credit scores as low as 550, especially if you have strong cash flow or a large down payment.
How old of a truck can I finance?
Most lenders prefer trucks under 10 years old and with mileage under 1,000,000 km, but exceptions exist.
Do I need a commercial license or CVOR to get approved?
While not always mandatory, having a CVOR and proper commercial licensing increases your approval chances.
Can I finance a private sale?
Yes, some lenders allow private sales but may require a third-party inspection or bill of sale.
What are typical interest rates for used truck loans?
Interest rates typically range from 9% to 19%, depending on your credit, business history, and asset type.
Can I include maintenance or warranty in the loan?
Some lenders allow you to bundle warranty and repair costs into the loan. Ask your advisor for eligibility.
If you're considering financing a used commercial truck, take time to assess your financials, research your options, and get expert guidance. Whether you’re upgrading your first unit or expanding a fleet, our team can help you navigate approvals and connect you with over 30 trusted lenders. You can even browse Mehmi’s available inventory or get in touch today to start the process.
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