Key highlights
- Lenders price on how well an asset holds value and resells
- Mainstream, in-demand equipment usually attracts sharper rates from lenders
- Specialised or niche gear is often priced higher
- Different lenders favour different asset classes, so pricing varies
The type of equipment you buy does influence your rate. Lenders price on how easily an asset can be valued and resold, so mainstream, widely used gear that holds its value tends to attract sharper rates, from around 6.55% p.a. for strong applicants. Specialised or niche equipment with a thin resale market is generally priced higher, subject to lender assessment. Different lenders favour different asset classes, so Overdrive compares 80+ banks and non-bank lenders to match your equipment to the funders who price it best.
Why asset type changes the price
Equipment finance is secured against the item itself, so the lender always asks the same question: if this deal went wrong, how easily and for how much could we sell the asset? Gear with a broad, active second-hand market answers that question well and is treated as strong security. Highly specialised equipment, or something with few potential buyers, is harder to value and slower to sell, which adds risk. That risk feeds directly into the rate. So two businesses borrowing the same amount over the same term can be quoted differently simply because of what they are buying.
Assets that tend to price well
Broadly, equipment that is popular, standardised and used across many industries tends to attract the sharpest pricing. Think common vehicles, widely used plant, and machinery with a deep resale market and clear valuation data. Because lenders see these assets regularly, they are comfortable with the risk and compete harder for the business. Newer examples price better still, since age and type work together. If your equipment is a familiar, in-demand item, you are usually in a strong position, and a solid credit profile can help you reach rates from around 6.55% p.a., subject to lender assessment.
Assets that can cost more
Specialised, custom-built or industry-specific equipment often prices higher. If only a handful of buyers would ever want it, the resale market is thin, valuations are uncertain, and the lender carries more risk. The same applies to assets that depreciate quickly, become obsolete fast, or are difficult to remove and transport. This does not mean such equipment cannot be financed. It usually can, but you may see a higher rate, a shorter term, or a request for a deposit. Some lenders specialise in particular niches and price them far better than a generalist funder would.
Type is one factor among several
Asset type never sits in isolation. Your credit history, trading record, deposit, the loan term and the asset's age all combine to shape the final rate. A strong applicant buying specialised gear may still secure reasonable pricing, while a weaker file on mainstream equipment could pay more. Some lenders also cap how much they will advance against certain asset classes, or require extra information such as a valuation. Because each lender weighs these things differently, the same piece of equipment can be priced very differently across the market, which is exactly why comparing matters.
Matching your asset to the right lender
The practical takeaway is to reach lenders that like your particular type of equipment, rather than applying to whoever is closest. A funder that regularly finances your asset class understands its value and prices it accordingly. Applying to the wrong ones wastes time and can add credit enquiries. Overdrive reviews the asset once and approaches the lenders whose appetite fits it, then presents the options clearly so you can choose on value. Sending a niche asset to a funder that understands it is often the difference between an average rate and a genuinely competitive one. Same-day pre-approval and 24-48 hour settlement may be available for eligible applicants, with all figures indicative and subject to lender assessment.
What you are buying genuinely shapes what you pay, but the right lender for your asset class can make a real difference to the rate. Overdrive's dedicated broker, Simon Kendrick, compares 80+ banks and non-bank lenders on one application and knows which funders favour which equipment. Whether your gear is mainstream or niche, request a free quote and see who prices it best for your business.
Frequently Asked Questions
Why does specialised equipment cost more to finance?
Because it has a thin resale market and is harder to value, the lender carries more risk if the deal fails. That risk is reflected in a higher rate, a shorter term or a deposit request. Specialist lenders who understand the asset class often price it more keenly than generalists.
Which equipment attracts the best rates?
Generally mainstream, widely used gear with a deep resale market and clear valuations, especially newer examples. Because lenders see these assets often, they compete harder. Paired with a strong credit profile, this can help you reach rates from around 6.55% p.a., subject to lender assessment.
Can I finance highly specialised machinery?
Usually yes. It can typically be financed, though you may see a higher rate, a shorter term or a deposit request due to the limited resale market. Some lenders specialise in particular niches and price them far better than a generalist would, so matching the asset to the right funder matters.
Does the asset type affect how much I can borrow?
It can. Some lenders cap how much they will advance against certain asset classes, particularly niche or fast-depreciating equipment, and may require a valuation. Mainstream, high-value assets tend to support higher advances. The limit depends on the lender and the deal, and is confirmed during assessment.
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