Excavators are almost always financed the same way as other earthmoving and construction machinery: a chattel mortgage. The lender funds the purchase, you own the excavator from settlement, and the lender holds security over the asset until the loan is repaid. If your business is GST-registered, you can generally claim the GST credit on the purchase in your next BAS rather than waiting for the machine to be paid off.
Repayments are usually weekly, fortnightly or monthly, matched to how the machine earns on your contracts. A balloon (residual) at the end of the term is common on excavator finance — it lowers the regular repayment in exchange for a lump sum due at the end, which suits operators who trade in or upgrade every few years as newer, more efficient machines come onto the market.
New and used excavators are both financeable, and so are private-sale and auction purchases — these typically go through an independent inspection step before settlement so the lender has confidence in the machine's condition. The rate a lender offers depends on the excavator's age, hours and your business's trading history; the indicative rate above is a starting point, and your actual rate is set once a lender has assessed your application.
For an excavator used in the business, the interest portion of chattel mortgage repayments is generally tax deductible, and the machine itself can typically be depreciated as a business asset. This is general information, not a substitute for advice from your accountant, who can confirm the treatment that applies to your entity and circumstances.
Excavators sit at the centre of most earthmoving, civil and construction fleets, and demand for them tends to track closely with the pipeline of residential, infrastructure and commercial building work around the country. Because an excavator is a working asset that pays for itself through the jobs it wins, most lenders on a broker panel like ours are set up to move quickly once the paperwork is in — comparing terms across the whole panel rather than the single rate an equipment dealer's own in-house finance desk can offer.
There's no fixed limit. It comes down to the machine, your business and how the loan is set up. Lenders typically look at:
Worked example (example only, not a quote): Using the calculator's starting figures — a $120,000 excavator, no deposit, a five-year term and a 15% balloon — the loan amount is $120,000. Your regular repayments pay off $102,000 of it plus interest, and the $18,000 balloon is due at the end. Buckets and attachments bought at the same time can be added to the price. Use the calculator above for your figures.
Five steps, from first enquiry to the machine on site.
Budget Finance is a credit representative (Credit Representative 565565) of Connective Credit Services Pty Ltd, Australian Credit Licence 389328. All applications are subject to the lender's assessment and approval.
Yes — used excavators are financed all the time, from dealers, private sellers and auctions. The lender looks hardest at the machine's age, hours and condition, so a service history and recent photos help. Older or high-hour machines may get a shorter term or a smaller balloon. For a private or auction purchase, expect an inspection before settlement so the lender can confirm the machine is what it should be.
It's possible, but fewer lenders will consider it and they'll want more detail. Lenders look for industry experience, such as years operating machines for someone else, and evidence of work, like a subcontract or forward bookings. A deposit or trade-in can help. Your broker can tell you upfront which lenders consider new ABNs, so the application goes to the right place first.
The lender sets the term, and the calculator above lets you test anything from one to seven years. The main limit is the machine's age and hours when the loan ends, so a newer, low-hour excavator can usually go longer than an older one. A longer term means lower repayments but more interest overall. Many operators match the term to when they plan to upgrade.
Usually yes, if you buy them at the same time. The excavator, its attachments and a plant or tag trailer to move it can often go into one loan with a single repayment. Some operators prefer separate loans so each asset has its own term and balloon. Your broker can set it up either way, depending on what the lender allows and what suits your cash flow.
If you'll use the machine most weeks, buying on finance usually makes more sense; if you only need it now and then, hiring can be cheaper. Owning means you build equity, may be able to claim depreciation and interest (check with your accountant), and can hire it out when it's idle. Hiring avoids maintenance and resale risk, but the cost never stops. Compare your yearly hire bill with the repayment from the calculator above.
Any size — mini and midi excavators through to standard and large-class machines are all financeable on our panel. Lenders assess the machine's value, age and your business's circumstances rather than applying a size cut-off.
No dealer requirement at all — a dealer sale, private sale, buying from a friend or relative, even a Facebook Marketplace listing, are all fine. Private sales just involve a couple of extra verification steps that we handle for you before settlement, since there's no dealer warranty backing the machine's condition.
Attachments purchased at the same time as the excavator can usually be rolled into the same finance amount. Attachments bought separately later are typically financed as their own smaller facility — ask your broker about bundling if you're buying both together.
For an excavator used in the business, the interest portion of chattel mortgage repayments is generally tax deductible, and the machine itself can typically be depreciated as a business asset. Confirm your specific position with your accountant.
It depends on the lender — but we have lenders on our panel who don't require a deposit at all.
Machines with lower hours and a documented service history generally attract longer terms and larger balloon options, since the lender is weighing remaining useful life and resale value. Older, high-hour excavators usually see shorter terms and smaller balloons.