Key highlights
- Rates move with funding costs, not on a fixed schedule
- Different lenders reprice at different times, so timing and comparison matter
- Your settled fixed rate is locked for the whole term
- Only a fresh quote reflects current market pricing for your deal
Equipment finance rates do not move on a set timetable. They shift as lenders' funding costs and broader market conditions change, which can happen at any time and varies from lender to lender. Importantly, once your fixed-rate deal settles, your own rate is locked for the term regardless of later movement. Only new quotes reflect the latest pricing. Overdrive Machinery Finance monitors pricing across 80+ lenders so you are quoted competitively whenever you apply.
There is no set schedule
Unlike some consumer products with clearly scheduled reviews, equipment finance rates can move whenever the forces behind them shift. Lenders price their finance off their own cost of funds, competitive pressure and their appetite for a particular asset class at a given time. When any of those change, pricing can follow. That might be prompted by broader market movements or by a lender's internal decisions. The practical takeaway is that the rate you are quoted reflects conditions on that day, and a quote from a few weeks ago may no longer hold, which is why fresh quotes matter when you are ready to proceed. Rather than trying to predict these shifts, it is far more useful to simply get a fresh quote when you are ready to act, so the number in front of you reflects today's conditions rather than last month's.
Different lenders move at different times
Because each lender sets its own pricing, they do not all move together or by the same amount. One lender might sharpen its rates to win business in a segment it wants to grow, while another holds steady or eases off. This is a big reason the same deal can attract noticeably different offers depending on where you look and when. It also means that even in a rising market, some lenders may still be competitive on your particular asset. Comparing a broad panel captures these differences, rather than relying on a single lender whose pricing may not be keen at that moment.
Your locked rate does not move
There is an important distinction between market pricing and your own rate. Most equipment finance is fixed, and once your deal settles, your rate and repayment are locked for the full term. Later movements in the market do not change what you pay. So while rates in general may move often, your settled contract is insulated from that. As a guide, rates start from around 6.55% p.a. for strong, asset-backed deals, with lower-doc, older or cheaper assets and weaker credit priced higher, indicative and subject to lender assessment at the time you apply. Only new borrowing reflects the current market.
What this means when you apply
Since pricing can shift and each lender differs, timing and comparison both matter. If you are close to purchasing, getting a current quote and moving reasonably promptly to settlement reduces the chance of a market move affecting a fixed rate that locks at settlement. If you are simply researching, remember that today's indicative figure is a snapshot. The most reliable way to know you are getting a keen rate on any given day is to compare across many lenders at the moment you apply, rather than assuming last month's pricing, or a single lender's, still represents the market.
Rates can move at any time and vary between lenders, so the surest way to get a competitive number is to compare when you are ready to act. Overdrive Machinery Finance checks current pricing across 80+ lenders for each application. Contact us for a free quote and see where the market sits for your deal today.
Frequently Asked Questions
Do equipment finance rates follow the cash rate?
They are influenced by broader funding costs, which are related to but not identical to any single benchmark. Lenders also factor in competition and their appetite for an asset class. So while general market conditions matter, rates do not move in lockstep with one figure, and different lenders respond in different ways and at different times.
Will my repayment change if rates rise after I settle?
On a fixed-rate contract, no. Your rate and repayment are locked at settlement for the full term, so later market rises do not affect them. Only a variable-rate facility would move. This certainty is a key reason many businesses choose fixed equipment finance for predictable budgeting over the life of the asset.
How long is a quote valid?
Validity varies by lender, and because pricing can move, quotes are indicative rather than guaranteed. Some offer a short hold period. If time passes between quote and settlement, the figure may be refreshed. Ask your lender or broker how long your quote stands and settle promptly to reduce exposure to movement.
Is it better to wait for rates to drop?
Waiting is a gamble, since rates may rise instead, and delaying a purchase has its own costs. Rather than timing the market, focus on comparing widely when you are ready to buy, so you secure the keenest rate available that day across many lenders, subject to their assessment of your deal.
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