Garbage truck financing is an equipment loan or lease used to buy a refuse truck (rear loader, side loader, front loader or roll-off) with the truck as the main collateral. Because a refuse truck is a chassis plus a separately built body, lenders price the whole unit, and the strongest applications come from haulers with signed collection contracts or established routes.
Waste hauling falls under our transportation business loans guide. This page covers what is specific to refuse: how the chassis and body are financed together, the manufacturer programs that include refuse models, where grants and tax credits stand in 2026, and how contracts and routes affect what lenders offer.
What garbage truck financing covers
- Rear loaders. The common residential and small-commercial truck, loaded by hand or cart tipper from the back.
- Automated and manual side loaders. Residential routes where an arm picks up carts, often run by a single driver.
- Front loaders. Commercial routes serving dumpsters at businesses and apartment complexes.
- Roll-off trucks and containers. Construction, cleanout and industrial work. Containers are equipment too, so ask whether they can go on the same financing. Haulers doing mostly construction work may also want to read dump truck financing.
Chassis plus body. The cab and chassis come from a truck maker and the packer body from a body manufacturer, then the two are joined by a dealer or upfitter. Ask the lender to finance the complete unit on one contract, and make sure the invoice lists both parts so the collateral value is clear.
Manufacturer finance programs for refuse trucks
The chassis makers finance their trucks, including refuse models, through their own finance companies. Offers below were checked on September 21, 2026.
- Mack: Mack Financial Services. Mack lists the LR, LR Electric, TerraPro and Granite among its refuse models. Its Flex Pay promotion, which includes the LR and TerraPro, offers qualified buyers 100% financing, up to 90 days to the first payment or $999 for the first three months, and terms up to 72 months, with a TRAC lease option. It ends December 31, 2026. Mack says the customer’s qualification, final terms and down payment are subject to its credit underwriting, and it can change or cancel the offer at any time.
- Peterbilt: PACCAR Financial. Peterbilt says the Model 520 is designed for vocational work such as refuse, and it links buyers to PACCAR Financial. PACCAR Financial’s special offers page lists vocational financing programs for Kenworth and Peterbilt but does not publish rates there.
- Freightliner: Daimler Truck Financial Services. Its finance and lease page names vocational and municipal customers and lists loans, several TRAC lease types and fair market value leases.
These programs finance the chassis maker’s truck; whether the body can be included depends on the dealer and the deal. “100% financing” is for qualified buyers, and a newer hauler should expect to be asked for money down.
Garbage truck financing options compared
Compare offers by APR (annual percentage rate, which combines interest and most fees into one yearly figure) and the total you will repay, not by the monthly payment. A deferred first payment or a residual at the end of a lease lowers the payment but not necessarily the cost.
| Option | Fits | What we could source | Watch for |
|---|---|---|---|
| Chassis maker’s finance arm | New refuse trucks from a dealer | Mack: 100% financing and up to 72 months for qualified buyers through December 31, 2026 | Body may need separate financing; promotional terms tied to models |
| Independent equipment lender | Used trucks, mixed fleets, containers, private sales | Set by each lender | Age and hour limits on older bodies |
| TRAC or fair market value lease | Lower payments, planned replacement cycles | Offered by Mack Financial Services and Daimler Truck Financial | Residual or buyout at the end |
| SBA 7(a) | Buying a hauling company or its routes, several trucks, refinancing | Up to $5 million; up to 10 years for equipment | More paperwork and longer to close |
| SBA 504 | A yard, maintenance shop or transfer facility | Up to $5.5 million; 10-, 20- or 25-year terms | Cannot be used for working capital |
SBA figures come from the SBA’s 7(a) page, which lists changes of ownership among eligible uses, its 7(a) terms page and its 504 page. Buying an existing hauler with its trucks, containers and customer accounts is another way to grow besides bidding for new routes; see how to finance a business acquisition.
Grants and tax credits in 2026
Clean-truck incentives have narrowed, so check them before you price an alternative-fuel or electric refuse truck.
- EPA Clean Heavy-Duty Vehicles grants. The EPA’s August 3, 2026 Q&A supplement for the 2024 program says no additional funding opportunities will be made available for the program.
- Commercial clean vehicle credit. The IRS says this credit, worth up to $40,000 for vehicles of 14,000 pounds or more, is not available for vehicles acquired after September 30, 2025 (IRS: Commercial clean vehicle credit).
- State and local programs. Some states and air districts run their own truck replacement programs. They change often, so ask your dealer and your state environmental agency what is open.
Depreciation. For tax years beginning in 2026, the Section 179 expensing limit is $2,560,000, reduced once you place more than $4,090,000 of property in service (IRS Rev. Proc. 2025-32). The IRS also says 100% bonus depreciation is permanent for qualified property acquired after January 19, 2025. Ask your tax preparer how a loan or a lease affects this.
Heavy vehicle use tax. Loaded refuse trucks are heavy, and highway vehicles with a taxable gross weight of 55,000 pounds or more need IRS Form 2290 (IRS: About Form 2290). The annual tax runs from $100 at 55,000 pounds to $550 above 75,000 pounds (Form 2290 tax table). Vehicles expected to travel 5,000 miles or less in the tax period can claim a suspension, which some short-route trucks may meet.
What lenders look for
- Contracts and routes. A municipal franchise or collection contract, HOA agreements, or a book of commercial accounts shows the truck will earn its payment. Bring the contract with its term and renewal dates. If you work for cities or counties, our government contractor loans page covers funding tied to public contracts.
- Bank statements. Steady monthly deposits from subscription or contract billing are what lenders want to see. Municipal payments can arrive on a set schedule, so show a full cycle.
- The unit. Chassis year and mileage, body make and type, and the condition of the hydraulics. Older bodies are harder to value, which affects the down payment. See used equipment financing.
- Permits and insurance. Local hauler licenses or permits where required, and liability and physical damage coverage naming the lender as loss payee.
- Owner credit. Most small haulers sign a personal guarantee. If your credit is thin, read equipment financing for bad credit.
Common mistakes
- Buying before the contract is awarded. A truck bought for a bid you lose still has a payment. If the timing is tight, ask the dealer about delivery dates that match the contract start.
- A loan term longer than the contract. If your contract runs five years, think about whether you can carry the truck payment if it is not renewed.
- Pricing an electric or alternative-fuel truck with expired incentives. Confirm which grants and credits are open on the day you order.
- Forgetting the body. Make sure the quote covers the chassis, body and any cart tipper or arm, not just the truck.
Garbage truck financing FAQs
Can I finance a used garbage truck?
Yes. Independent equipment lenders finance used refuse trucks from dealers and private sellers, and Mack’s used-truck programs cover some later-model Mack trucks. Expect a closer look at the body and hydraulics, and a larger down payment on older units.
Can I get financing to start a waste hauling company?
It is possible, especially with a signed contract or a book of customers. A roll-off truck with containers is a common starting point. See equipment financing for startups for how lenders treat new businesses.
Are there grants for electric garbage trucks?
Federal options have narrowed. The EPA says no more funding will be offered under its Clean Heavy-Duty Vehicles program, and the federal commercial clean vehicle credit ended for vehicles acquired after September 30, 2025. Some state programs may still be open.
Can an SBA loan be used to buy another hauler’s routes?
The SBA lists changes of ownership as an eligible 7(a) use, which can include buying a hauling business with its trucks and accounts. The lender will look at the seller’s revenue history and how customer contracts transfer.
Next step
Gather your contracts, a year of bank statements and the full spec of the truck and body, then compare the manufacturer’s quote with an outside offer. Our transportation business loans hub and heavy equipment financing page explain how SMB Compass helps you compare offers from the lenders we work with.
Sources
- Mack Trucks: Refuse
- Mack Financial Services: Incentives
- Peterbilt: Model 520
- PACCAR Financial: Special offers
- Daimler Truck Financial: Finance and lease products
- SBA: 7(a) loans
- SBA: 7(a) terms, conditions and eligibility
- SBA: 504 loans
- EPA: 2024 Clean Heavy-Duty Vehicles grants Q&A supplement (August 3, 2026)
- IRS: Commercial clean vehicle credit
- IRS Revenue Procedure 2025-32
- IRS: Guidance on the additional first-year depreciation deduction
- IRS: About Form 2290
- IRS: Form 2290
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.