Buying a Used Skid Steer: Finance Tips

Key highlights

• Used skid steers can be financed, but age and hours affect terms and rate
• Dealer purchases often settle faster than private sales due to cleaner paperwork
• Lenders value the machine independently, which protects you from overpaying
• Private sales are financeable but require extra verification and documentation
• Comparing lenders finds those most comfortable funding older equipment

Can you finance a used skid steer?

Absolutely, and used machines make up a large share of equipment finance. Lenders are generally comfortable funding second-hand skid steers because they are durable, in steady demand and relatively easy to resell if needed. The main differences from financing new are around age, hours and how the sale is structured. A used skid steer that is only a few years old with sensible hours is straightforward to fund. Older machines are still financeable, but the pool of willing lenders narrows and terms may tighten. The condition and service history of the specific unit matter too. Knowing this upfront lets you shop for a machine that is both right for the work and comfortable for lenders to finance, which keeps the whole process smoother.

How do age and hours affect used skid steer finance?

Lenders think about what the machine will be worth across the loan term, so a used skid steer's age and operating hours directly influence what they will offer. A newer, lower-hours unit holds value well and typically attracts competitive rates and a full-length term. As the machine gets older or the hours climb, lenders become more cautious: they may shorten the term, ask for a larger deposit, or price the rate higher to reflect faster depreciation and resale uncertainty. Many lenders also apply an end-of-term age cap, meaning the machine cannot exceed a certain age by the time the loan finishes, which can limit how long you borrow over. Checking these limits before you fall in love with a specific machine saves disappointment later.

Private sale or dealer: which is easier to finance?

Both are financeable, but they behave differently. Dealer purchases tend to be simpler and faster because the paperwork, tax invoice and ownership trail are clean and the machine is easy to verify. Lenders are comfortable with this and settlement usually moves quickly. Private sales are common for skid steers and can offer better value, but they involve extra steps: the lender will want to confirm the seller genuinely owns the machine, check it is not encumbered by existing finance, and verify the price is fair through an independent valuation. That protects you as much as the lender. Private deals can absolutely be funded, they simply require more documentation and a little more patience. If speed is critical, a dealer sale is generally the quicker route to settlement.

Why does the lender value the machine independently?

When you finance a used skid steer, the lender typically confirms the machine's market value rather than just accepting the sale price. This is not distrust; it protects both sides. For the lender, the machine is security, so they want to be sure it is worth roughly what is being borrowed against it. For you, an independent valuation is a useful sanity check that you are not overpaying, particularly on a private purchase where prices can vary widely. If the valuation comes in below the agreed price, the lender may fund only up to the assessed value, meaning you cover the difference. Knowing this in advance helps you negotiate sensibly and avoid a last-minute funding gap, especially on older or unusual machines where values are harder to pin down.

What documents help a used skid steer application go smoothly?

Being organised speeds everything up. For the machine, have the tax invoice or a written sale agreement, the make, model, year, serial number and hours, and any service records that show it has been maintained. For a private sale, the seller's details and evidence they own the machine outright help the lender verify things quickly. On your side, your ABN and GST details, identification and recent bank statements are the usual starting point; low-doc options may need little more than that for eligible applicants, while larger or more complex deals can call for financials. Having this ready before you apply means fewer back-and-forth requests and a faster path to settlement. A broker will tell you exactly what a particular lender wants so you only gather what is needed.

How do you get a competitive rate on a used machine?

Used equipment rates vary more between lenders than new-machine rates, simply because lenders differ in how they view age, hours and private sales. That variation is an opportunity. Presenting a well-documented machine with clear service history and a fair price makes lenders more comfortable and can improve your offer. A deposit or trade-in reduces the amount borrowed and often sharpens the rate. Above all, comparing widely matters: the lender who prices a five-year-old skid steer competitively is not necessarily the one who is sharp on a newer unit. Rather than applying yourself and risking multiple credit enquiries, letting a broker run one application across many lenders finds the best fit for your specific machine and profile without denting your credit file.

How does a broker make buying a used skid steer easier?

Used-machine finance has more moving parts than new, and that is where a broker earns their keep. Working through Overdrive Machinery Finance, Simon Kendrick knows which of the 80+ banks and non-bank lenders are comfortable with older machines, higher hours and private sales, so your application goes to the right places from the start rather than being knocked back and reworked. He handles the valuation and verification steps, tells you exactly what documents each lender needs, and compares the offers so you see where your deal prices best. That saves you time chasing quotes and reduces the risk of a stalled settlement on a machine you have already committed to buying.

Found a used skid steer, or still hunting? Either way, it pays to line up your finance early. Simon Kendrick can tell you what age and price will finance cleanly, then compare the panel of 80+ banks and non-bank lenders to find your best option. It starts with a soft credit check only, so getting indicative numbers does not mark your file, and eligible applicants can often see a decision within 24 to 48 hours. Reach out for an obligation-free quote and buy your next machine with the funding already sorted.