Work ute costs affect every job you quote. The repayments come out regularly, then registration, insurance, servicing and tyres arrive on their own schedules. By the time you replace the vehicle, the amount you recover at sale will have changed the total again.
Matt Jones sits down with Tim Cullen, CEO and co-founder of TradieSpec, to talk through how a commercial vehicle earns its place in a trade business. Tim started the business in 2019 with his business partner and a second-hand Hilux. At the time of recording, he described more than 1,400 vehicles on the road.
The conversation covers buying, finance, rent-to-own and flexible rental, along with the practical questions that come with adding vehicles to a fleet. There’s plenty to consider before you commit cash or sign a contract.
Put Your Work Ute Costs In One Calculation
Tim’s Hilux SR5 example starts with repayments of around $1,000 to $1,200 a month, depending on the finance arrangement. His estimate of the total cost to the business is $2,600 a month once everything is counted.
That’s his example, rather than a price that applies to every Hilux or every business. It raises a useful question for anyone quoting work: how much vehicle cost have you allowed for?
Registration, CTP, comprehensive insurance, servicing, tyres and maintenance all need to be paid. Fuel and depreciation affect the calculation too. As the fleet grows, someone also has to manage insurance claims, allocate tolls and deal with fines. Tim discusses that administration as part of running the vehicles.
Put those expenses over the same period when comparing options. A monthly repayment and an annual insurance bill are easier to assess once you’ve calculated what they mean across a year. For a wider look at the numbers behind your operation, our conversation on business numbers for tradies covers how financial information informs business decisions.
Compare The Contract With The Work Ahead
Buying a vehicle outright uses capital immediately. Tim acknowledges that it can be the cheapest way to acquire a ute when the business has the money available. The owner still has the running costs and fleet management to handle.
Finance changes when the purchase is paid for. Tim discusses chattel mortgages and lease arrangements, and why the details of each product need a proper comparison. Interest, ownership at the end of the term and responsibility for operating costs all affect the decision.
TradieSpec supplies commercial vehicles through rent-to-own and flexible rental arrangements. In the recording, Tim describes maintained packages covering expenses such as registration, insurance, servicing and tyres. He says the rent-to-own arrangement has a $1 ownership transfer at the end of the contract.
Check the current contract for inclusions, return conditions and what happens if your needs change. Speak with your accountant about the treatment of the arrangement in your business. A vehicle commitment needs to fit both the work you have and the cash available to support it.
Give Growth A Vehicle Budget
A new contract can mean hiring people and finding more vehicles before the income from that work arrives. Tim describes a customer that needed additional utes while its existing financier was waiting for year-end financial results before considering more credit.
That timing matters. The vehicle has to be available when the employee needs to get to site, and the business has to carry the costs while the work gets underway.
Tim also describes customers using a mix of vehicles they own, rent-to-own vehicles and flexible rentals. That gives business owners several arrangements to assess against their workload. The comparison needs to include what happens if the contract ends, demand changes or a vehicle is damaged.
Work through those timing questions alongside your broader cash plan. Our discussion of cashflow forecasting with Profit First examines how forecasting and budgeting help owners plan the movement of money through the business.
Include Resale Value In The Decision
Tim shares a Toyota HiAce example from his own business. He says he bought it for $45,000 and sold it four years later for $41,000 through an auction house.
It’s a strong result for that vehicle, not a guaranteed outcome for the next one. The example shows why the amount recovered at sale deserves attention when calculating ownership costs.
The condition of the vehicle, servicing history and demand in the used market all deserve consideration before you rely on a resale figure. Tim talks about the unusual used-car prices that followed supply shortages, when some buyers paid more for used vehicles than the new price.
Ownership at the end of the agreement changes who carries that resale exposure. Tim explains that customers who keep an asset through rent-to-own still have its value to consider. Ask the provider to explain the end-of-term position before comparing the weekly or monthly price.
Ask How You’ll Keep Working
Tim still favours Hilux and Ranger for commercial work. He explains his preference through reliability, resale and the manufacturer’s ability to get a vehicle repaired.
A ute waiting for repairs can affect the work your business can complete. Ask what support exists where you operate, how replacement vehicles are handled and what happens if parts take time to arrive. Those questions become particularly relevant for businesses working away from major centres.
The conversation also covers Chinese manufacturers and battery development. Tim describes demonstrations he saw at the Beijing Auto Show and discusses how newer vehicles might change buying decisions.
For a trade business, the assessment still comes back to the job: payload, towing, range under load and access to servicing. A vehicle needs to meet those requirements in the places you use it.
Listen to the full conversation with Tim before replacing a ute or expanding your fleet. Take your current vehicle costs with you when you compare the options, and ask enough questions to understand the full commitment.
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