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Excavator Finance · Chattel Mortgage

Excavator chattel mortgage

Fund excavator on chattel mortgage and own it from day one, with GST on the asset claimable upfront. Indicative rates From ~7.6% p.a. (new, prime borrower) — subject to credit.

Quick answer

Excavator finance structured as chattel mortgage means you own it from day one, with GST on the asset claimable upfront. Excavator finance funds mini (under 6t), midi (6–12t) and full-size (12t+) tracked and wheeled excavators for NZ civil, construction, landscaping and demolition businesses. Most NZ excavator finance is hire purchase or chattel mortgage, with terms up to 84 months matched to the asset's useful life.

Is chattel mortgage right for excavator?

A chattel mortgage gives day-one ownership and an upfront GST claim on the plant — common for civil and construction businesses buying excavators, loaders and forklifts.

About excavator finance

Excavator finance funds mini (under 6t), midi (6–12t) and full-size (12t+) tracked and wheeled excavators for NZ civil, construction, landscaping and demolition businesses. Most NZ excavator finance is hire purchase or chattel mortgage, with terms up to 84 months matched to the asset's useful life. Indicative rates from ~7.6% p.a. for prime borrowers on new machines from a recognised dealer (Komatsu, CAT, Hitachi, Kobelco, Hyundai, Sany, Kubota, Volvo). Used excavators including auction purchases are funded by specialist NZ non-bank lenders.

Why chattel mortgage

  • ✓You own the asset from day one — it sits on your balance sheet immediately
  • ✓Claim full GST on the asset cost in the period of purchase (subject to GST basis)
  • ✓Claim depreciation and the interest portion of repayments
  • ✓Fixed rate, fixed payments — easy to budget
  • ✓Lender registers PPSR security; otherwise unencumbered by lender ownership

Trade-offs to weigh

  • –You bear depreciation risk over the term
  • –Sale before end-of-term requires paying out the loan first
  • –Asset and liability both on balance sheet — increases gearing optics

Excavator finance at a glance

Indicative rate
From ~7.6% p.a. (new, prime borrower) — subject to credit
Typical term
48–84 months matched to useful life
Deposit / LVR
Up to 100% on new from a recognised dealer; 80–90% on used; lower on auction
Lenders
UDC Finance, Heartland Bank, Speirs Finance

What you can fund

Mini excavators (under 6 tonne) — Kubota, Yanmar, BobcatMidi excavators (6–12 tonne) — Komatsu, CAT, HitachiFull-size tracked excavators (12t+)Wheeled excavatorsLong-reach and high-reach excavatorsDemolition excavators with shears and breakers

How chattel mortgage is treated

Ownership from day one You (business)
Who claims depreciation You
GST treatment Claim full GST on asset cost upfront (cash/invoice basis)
Typical term 24–60 months

See the full breakdown in the chattel mortgage guide, compare all four structures on the comparison page, or read more on excavator finance.

Rates, terms and LVR are indicative market ranges for guidance only — not a quote, not financial or tax advice, and subject to lender credit approval. Confirm tax and accounting treatment with your accountant.

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Frequently asked questions

Yes. Chattel Mortgage is a common way to fund excavator for New Zealand businesses — it means you own it from day one, with GST on the asset claimable upfront. A chattel mortgage is a finance structure where you (the business) take legal ownership of the asset on day one, and the lender registers a security interest over it on the Personal Property Securities Register (PPSR). You pay regular instalments over the agreed term, claim depreciation and the interest portion of each payment, and you can claim the full GST on the asset cost upfront in your next return. All applications are subject to lender credit approval.