New vs Used Skid Steer Loader Finance

Key highlights

• New loaders often earn the longest terms and sharpest rates
• Used machines cost less up front but may shorten the term
• Total cost of finance matters more than the purchase price alone
• Both new and used qualify for indicative rates from around 6.55% p.a.
• One application compares finance on both so you can decide clearly

What is the core difference in finance?

The finance structure for new and used skid steer loaders is broadly the same, usually a chattel mortgage, but the terms a lender offers diverge. A new machine has a predictable value, a manufacturer warranty and a clear resale market, so lenders extend their longest terms and most competitive rates against it. A used loader is still very fundable, but its age and hours cap how long the loan can run and can lift the rate slightly. In short, new tends to win on finance terms while used wins on purchase price. The right choice depends on whether lower monthly repayments or a lower total outlay matters more to your business.

How do rates and terms compare?

Both new and used skid steers can attract indicative rates from around 6.55% p.a. for eligible applicants, but new machines more reliably reach the bottom of that range. Lenders will typically offer a five-year term on a new loader without hesitation, spreading repayments and keeping them low. On a used machine, the term is governed by the age rule: the older the loader, the shorter the achievable term, which pushes monthly repayments up even when the loan amount is smaller. So a cheaper used machine can carry a higher monthly repayment than a dearer new one. Comparing the two side by side on repayment, not price, is the only way to see which is truly cheaper for you.

Which option costs less overall?

Total cost is where the comparison gets interesting. A new skid steer costs more to buy but comes with warranty cover, minimal early repair bills and strong resale when you upgrade, so the true cost of ownership can be lower than it first appears. A used machine saves thousands up front but may bring maintenance costs, a shorter finance term and faster depreciation on an already-older asset. Add the interest paid over each term and the picture sharpens. For high-hour, heavy-use operators, a reliable new machine often wins on total cost; for lighter or occasional use, a good used loader can be the smarter spend. Running both scenarios before you buy removes the guesswork.

What about deposits and eligibility?

New machines are the easiest to finance with no deposit, because their value is predictable and a lender's risk is lower. Many eligible applicants secure a brand-new skid steer with nothing down. Used loaders can also be funded without a deposit, but older or higher-hour units are where a lender is more likely to ask for a contribution, particularly on a private sale. Eligibility criteria are otherwise similar, resting on your ABN age, credit profile and serviceability. If your profile is still building, a new machine can sometimes be the easier approval simply because the asset is stronger. A broker can tell you which path your specific situation favours.

Does resale value affect your decision?

Resale value quietly shapes the whole equation. A new skid steer from a recognised brand holds its value well and gives you a strong trade-in position when you upgrade, which can fund the deposit on your next machine. A used loader has already taken its steepest depreciation hit, so it loses value more slowly in dollar terms, but it will also be older and less sought after when you sell. If you plan to keep the machine for its full working life, resale matters less. If you upgrade every few years, buying new and trading strong can keep you in current gear for a surprisingly manageable ongoing cost.

Who should choose new and who should choose used?

There is no universal answer, but some patterns hold. High-utilisation operators running the machine daily, or those who value warranty cover and want to upgrade regularly, tend to be better served by a new loader on a long term. Businesses watching cash flow closely, running lighter or seasonal workloads, or wanting to own outright without a large financed sum often do well with a quality used machine. New ABNs sometimes find a new machine an easier approval, while experienced operators comfortable assessing condition can extract great value from the used market. Your work pattern, budget and upgrade habits point the way more than any general rule about new versus used.

How does comparing lenders help either way?

Whether you lean new or used, the lender you choose changes the deal. New-machine pricing varies across the panel, and used-machine appetite varies even more, with some lenders cautious on age and hours while others embrace them. By comparing 80+ banks and non-bank lenders on one application, Simon can quote both a new and a used option against your profile, so you decide with real numbers rather than assumptions. That single comparison also means one soft credit check rather than several hard enquiries from approaching banks individually. Seeing the finance on both machines side by side often settles the new-versus-used debate faster than any spreadsheet.

If you are torn between a new and a used skid steer loader, let the numbers decide. Simon Kendrick can prepare obligation-free, indicative quotes on both from a panel of 80+ lenders, using only a soft credit check to start so your file stays clean. For eligible applicants, a firm decision can follow within 24 to 48 hours. Reach out to Overdrive Machinery Finance and compare the real cost of new versus used before you commit to either machine.