Used excavator and skid steer finance gives Australian earthmoving, excavation and civil businesses a way to purchase productive machinery without paying the full purchase price upfront.
For many operators, buying used can make commercial sense.
A well-maintained second-hand excavator or skid steer may allow a business to:
The machine does not necessarily need to come from a dealership.
Eligible used excavators, skid steers and other earthmoving equipment can potentially be financed when purchased through:
The lender will assess both the business and the machine.
That means approval can depend on factors including:
The Asset Finance Shop (TAFS) specialises in commercial asset finance and can compare suitable machinery finance options through access to more than 80 bank and non-bank lenders.
For straightforward applications where the required information and machine details are available, approval can be arranged in as little as 24 hours.
This guide explains how machinery finance in Australia works for used excavators and skid steers, what lenders assess, how low documentation machinery loans work and what businesses should check before committing to a machine.
Yes.
Used excavators can be financed through selected commercial asset finance lenders.
TAFS can arrange finance for eligible excavators purchased:
Older machinery may also be considered depending on the lender's requirements around age, condition, value and expected working life.
The strongest finance option will depend on both:
Your business
and:
The excavator.
A lender that is comfortable financing a three-year-old excavator through a dealer may not be the right lender for a ten-year-old machine being purchased privately.
That is why lender matching matters.
Yes.
Used skid steers and posi-tracks can be financed through selected lenders.
The lender may assess:
Skid steers often have a lower purchase price than larger excavators, which can potentially provide access to a broader range of lenders depending on the business and amount being financed.
Machinery finance is commercial asset finance used to purchase equipment that generates income or supports the operation of a business.
Rather than paying the full machinery price from cash, the approved amount is repaid over an agreed finance term.
For earthmoving and civil businesses, machinery finance can potentially cover:
Used machinery finance can be particularly useful where a business needs equipment quickly but wants to keep working capital available for other expenses.
Buying new is not always the strongest commercial option.
Used machinery may allow a contractor to buy the equipment it needs at a lower purchase price.
For example, a business may have a choice between:
Brand-new compact excavator
Higher purchase price
Full manufacturer warranty
Three-year-old larger excavator
Lower purchase price
Higher operating hours
The second option may give the business access to greater capacity for the same budget.
Used machinery can also be attractive where:
The key is making sure the used machine is commercially suitable before taking on the finance.
Used machinery requires the lender to assess the asset as well as the borrower.
Common factors include:
The lender may have maximum-age requirements.
A machine that is already older may also be offered a shorter finance term.
Hours can help indicate how heavily the excavator has been used.
Two machines of the same age can have very different values if one has substantially higher hours.
The lender may want to understand whether the equipment is operational and commercially usable.
In some transactions, an inspection may be required.
The purchase price needs to make sense relative to the equipment's market value.
The lender considers whether the machine is likely to remain productive for the proposed finance term.
A dealership purchase can involve different settlement checks from a private sale or auction.
TAFS's existing used-machinery guidance confirms lenders assess factors such as age, operating hours, condition, market value, expected working life and seller type when considering used equipment finance.
The same broad principles apply.
The lender may look at:
For a smaller earthmoving business, a skid steer may be easier to justify where the machine will directly support existing work.
For example:
The clearer the commercial purpose, the easier it is for the lender to understand the transaction.
Potentially.
Eligible attachments may sometimes be included in the same finance facility as the machine.
This can include:
TAFS's existing equipment finance material also notes that skid steer attachments such as 4-in-1 buckets, trenchers, sweepers and pallet forks can potentially be included with the machine.
Whether an attachment can be included will depend on:
Both can potentially be financed.
But the settlement process can differ.
The lender may receive:
and settle directly with the dealer once the finance conditions are satisfied.
Additional checks may be required around:
This protects both the lender and buyer.
TAFS can arrange eligible used machinery finance for dealer, private-sale and auction purchases.
Potentially.
Buying privately from another contractor can be an effective way to find:
But do not assume the finance process is exactly the same as a dealer purchase.
The lender may need to verify:
An inspection or valuation may also be required.
Potentially.
Selected lenders can finance eligible auction machinery.
It is generally better to understand your finance position before bidding.
A pre-assessment may help establish:
Final approval will still depend on the actual machine purchased.
It can be useful.
Auction purchases can move quickly.
If you win the machine first and investigate finance later, you may discover:
Completing an initial assessment first can reduce this risk.
TAFS's existing excavator finance guidance specifically notes that pre-approval can help establish a finance position and proposed spending limit before bidding.
Low documentation machinery finance allows eligible businesses to apply without necessarily providing the same level of financial paperwork required under a traditional full-doc application.
A full-doc application may involve:
A low doc machinery application may instead rely more heavily on:
Low doc does not mean no assessment.
The lender still needs to be satisfied that:
TAFS's internal low-doc guidance confirms selected lenders can assess machinery applications using bank statements, ABN details, credit history, industry experience and asset information rather than always requiring full financials.
Potential applicants include:
A self-employed earthmoving operator may not always have the same level of financial reporting as a larger civil company.
A newer ABN may still have substantial excavation or construction experience.
The business may be trading strongly while the latest accountant-prepared accounts are not yet complete.
Existing repayment history and bank statements can help support an expansion application.
Potentially.
Not every lender requires the same amount of trading history.
TAFS has lenders on its panel that can consider some businesses with less than 12 months of ABN history, depending on the broader application. Those lenders may consider industry experience, financial position, source of work, contracts and letters of intent.
For example:
ABN age: 7 months
Civil experience: 10 years
Current work: Confirmed subcontract excavation
Machine: Used 5-tonne excavator
The business entity is new.
The operator is not inexperienced.
That distinction can matter.
A lender may look more favourably on the application where the operator can demonstrate:
The lender is trying to understand whether the machine has a realistic path to generating the income needed to service the debt.
Potentially.
First-machine finance can be available through selected lenders.
The applicant may need to show:
A first-time machine owner who has worked as an excavator operator for ten years presents differently from someone with no industry experience.
For an established operator, adding another machine can be assessed as a business expansion.
The lender may consider:
The important question is:
Will the second machine produce enough additional value to justify the new repayment?
The same principle applies.
For example, a landscaping and excavation business may already have:
If the business is regularly hiring another skid steer or turning away work, purchasing an additional machine may improve capacity.
The lender may compare:
Current hire or subcontract cost
against:
Proposed finance repayment
and assess the additional income available.
A paid-off machine does not necessarily mean it is cheaper to operate.
An older excavator may create increasing costs through:
Consider:
Old machine repair and downtime cost: $4,000 per month
versus:
Replacement machine finance: $3,500 per month
That does not automatically mean replacing the machine is better, but it shows why repayment alone is not the correct comparison.
TAFS's internal earthmoving guidance notes that the repayment difference on a newer machine can sometimes be less than the downtime, maintenance and repair costs associated with retaining ageing machinery.
Potentially.
If you are upgrading rather than adding another machine, your existing excavator or skid steer may have equity.
For example:
Existing excavator value: $90,000
Finance payout: $40,000
Potential equity:
$50,000
That equity may be able to contribute toward the replacement machine.
This can reduce the new finance amount without using the same amount of cash.
Not every application requires a deposit.
Deposit requirements can depend on:
A larger deposit may be requested where:
Potentially.
Selected applicants may be able to finance the full eligible purchase price.
This is not guaranteed.
A stronger no-deposit application may include:
No deposit also means more money is being financed.
The business should compare the benefit of retaining cash with:
Earthmoving businesses still need cash after the machine settles.
Operating costs may include:
Using every available dollar as a deposit can leave the business exposed.
A finance structure should consider both:
How much debt should we take on?
and:
How much cash should remain in the business?
TAFS primarily arranges machinery purchases using a chattel mortgage. Under this structure, the business owns the machine from settlement while the lender registers security over it until the finance has been repaid.
The structure may include:
This can be used for eligible dealer, private-sale and auction machinery purchases.
A balloon leaves part of the principal outstanding at the end of the finance term.
For example:
Excavator finance: $150,000
Term: 5 years
Balloon: $30,000
The regular repayment is generally lower because $30,000 remains payable at the end.
A balloon may help preserve monthly cash flow.
But it creates a larger final obligation.
Potentially.
Consider:
A three-year-old excavator financed for five years may have a different future-value profile from a 12-year-old machine financed for the same period.
The balloon should be realistic.
There is no single universal term.
The lender may consider:
Newer used machinery may support longer terms than older equipment.
A longer term generally:
A shorter term generally:
There is no single machinery finance rate.
Pricing can depend on:
The lowest rate is not necessarily the strongest finance structure.
Compare the complete offer.
Consider a used excavator costing:
$160,000
Deposit: $40,000
Finance: $120,000
Term: 4 years
Balloon: $0
Deposit: $10,000
Finance: $150,000
Term: 5 years
Balloon: $25,000
Option A may:
Option B may:
Neither is automatically better.
The right structure depends on the business.
Depending on the lender, useful information can include:
Some applications may also require:
Low doc applicants may not need every full-doc item.
The requirements are generally similar.
Once the machine has been selected, provide:
Complete machinery information can help reduce delays.
Approval can take longer where the transaction involves:
Fast approval is usually the result of:
a complete application matched to the right lender
rather than simply applying to whichever lender promises the fastest turnaround.
Straightforward machinery applications can be approved in as little as 24 hours when the required business and machine information is available.
Approval speed can vary where:
Approval and settlement are also separate stages.
Going directly to a single lender means your application is assessed against one lender's:
A specialist equipment finance broker can compare those criteria first.
TAFS can review applications against more than 80 lenders, including options for selected low doc, newer-ABN, used, auction and private-sale machinery transactions.
TAFS can review:
This includes:
TAFS begins with a soft credit check that leaves no formal enquiry on the credit file.
The application is assessed before formal submission against lender criteria including:
TAFS compares suitable options from a panel of more than 80 lenders.
The structure can consider:
The application is then formally submitted to the selected lender rather than automatically being sent to multiple lenders.
Once approved, TAFS coordinates:
Before committing to a machine, check:
|
Area |
What to confirm |
|
Machine |
Make and model |
|
Year |
Manufacturing year |
|
Hours |
Current operating hours |
|
Condition |
Mechanical and cosmetic condition |
|
Service history |
Available maintenance records |
|
Purchase price |
Amount being paid |
|
Market value |
Whether the price appears reasonable |
|
Seller |
Dealer, private seller or auction |
|
Security |
Whether existing finance needs clearing |
|
Attachments |
What's included |
|
Deposit |
Cash contribution |
|
Trade-in |
Existing machine equity |
|
Finance term |
Proposed loan length |
|
Balloon |
Final amount if used |
|
Repayment |
Fits business cash flow |
|
Working capital |
Cash remaining after settlement |
Ask:
Start with an initial assessment of the business and excavator purchase.
The lender will assess your ABN, income, credit profile, current debts and machinery.
Used excavators can potentially be financed through dealers, private sellers and auctions.
Yes.
Selected lenders finance used excavators subject to factors such as age, hours, condition, purchase price and value.
Yes.
New and used skid steers can be financed through selected commercial equipment lenders.
Potentially.
Posi-tracks are common commercial earthmoving assets and can be considered by machinery lenders.
Potentially.
Eligible attachments such as buckets, augers, breakers and tilt hitches may be included in the finance facility.
Potentially.
Attachments such as buckets, pallet forks, sweepers and trenchers may sometimes be included.
Yes, through selected lenders.
Additional seller, ownership and equipment checks may apply.
Potentially.
Selected lenders finance eligible auction purchases.
Completing an initial finance assessment before bidding can help establish your likely finance position.
Potentially.
Available lenders, term and balloon may depend on the machine's age, hours, condition and expected working life.
Potentially.
Selected lenders can consider newer ABNs where the broader application supports the purchase.
Industry experience, source of work, bank statements and credit history can all matter.
Potentially.
Selected lenders may assess eligible applicants using recent bank statements and other supporting information rather than full financial statements.
No.
The lender still assesses repayment capacity, business activity, credit profile and the equipment.
Not always.
Deposit requirements depend on the lender, business, machine and finance amount.
Potentially.
Selected applicants may qualify for full eligible purchase-price finance.
Potentially.
Equity remaining after any finance payout can contribute toward the replacement machine.
Potentially.
A balloon can reduce regular repayments but creates a larger amount payable at the end.
Potentially.
Existing business income, contracts, current repayment history and the income expected from the new machine may help support the application.
TAFS primarily arranges machinery finance using a chattel mortgage, where the business owns the machine from settlement while the lender holds security over it.
Yes.
TAFS starts its initial equipment finance assessment with a soft credit check before the formal lender application.
TAFS has access to more than 80 lenders and pre-vets applications before a formal lender submission.
Straightforward applications can be approved in as little as 24 hours when the required information and equipment details are available.
Buying used machinery can help an earthmoving business add capacity without committing to the full cost of new equipment.
But used equipment finance needs to be structured around more than the machine's purchase price.
The lender needs to consider:
TAFS can assess the business and machine before comparing suitable machinery finance options through access to more than 80 bank and non-bank lenders.
Options can be available for:
For straightforward applications where the required information is available, approval can be arranged in as little as 24 hours.
The Asset Finance Shop (TAFS) is a commercial asset finance brokerage based in Sydney.
Information on this page is general in nature and doesn't take your circumstances into account. Finance is subject to lender assessment, criteria and approval.