Finance
Financing an excavator: the basics
General information to help you ask better questions. It is not financial advice and does not consider your circumstances.
Common ways to fund a machine
Buyers commonly consider a few structures. Each has different costs, ownership outcomes and tax treatment, so it pays to understand them before signing.
| Type | In general terms |
|---|---|
| Chattel mortgage | You own the machine and the lender holds a security interest until the loan is repaid. |
| Finance lease | The lender owns the machine and you pay to use it, with end-of-term options set out in the contract. |
| Hire purchase | Ownership transfers once the agreement is completed. |
| Unsecured business loan | No security over the machine, typically with different pricing and terms. |
What to compare
- The comparison rate, not just the headline rate
- Establishment, monthly and early-exit fees
- Balloon or residual payments at the end
- Total amount repaid over the term
- What happens if your circumstances change
Illustrative only. Any rate you see in an advertisement is an example. Rates, fees and eligibility vary by lender and by circumstance, finance is subject to lender criteria, and a comparison rate may not include all costs. Nothing on this site is an offer, approval or guarantee.
Independent guidance
ASIC's MoneySmart site has independent information on borrowing, and the ATO publishes information on depreciation and deductions for business assets. Speak with a licensed professional about your own situation.
Ready to explore options?
If you would like to make an enquiry about funding a machine, you can start on our funding partner's site. Enquiries are free and carry no obligation.
Selling your excavator before you upgrade?
List it free and put the proceeds towards your next machine.