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Excavator Finance · Finance Lease

Excavator finance lease

Fund excavator on finance lease and lease it over its useful life, with an option to buy at the residual. Indicative rates From ~7.6% p.a. (new, prime borrower) — subject to credit.

Quick answer

Excavator finance structured as finance lease means you lease it over its useful life, with an option to buy at the residual. 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 finance lease right for excavator?

A finance lease can suit plant you will work intensively but may not want to own at end of life, turning the cost into a deductible lease rental with a residual buy-out option.

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 finance lease

  • ✓Lease payments are deductible operating expenses
  • ✓No GST charged upfront on the asset — GST is on each lease payment
  • ✓Often easier approval than a traditional loan for new businesses
  • ✓Predictable fixed payments
  • ✓May suit assets with strong second-hand market (machinery, plant)

Trade-offs to weigh

  • –You do not own the asset during the term
  • –Buying out at end of term usually requires negotiating residual
  • –Less flexibility than hire purchase if you want to sell mid-term

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 finance lease is treated

Ownership during term Lender owns the asset
Ownership at end of term Lender (with option to purchase at residual)
Who claims depreciation Lender
GST treatment GST on each lease payment (not upfront)

See the full breakdown in the finance lease 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. Finance Lease is a common way to fund excavator for New Zealand businesses — it means you lease it over its useful life, with an option to buy at the residual. A finance lease is an arrangement where the lender owns the asset and rents it to your business for an agreed term, with you taking on most of the risks and rewards of ownership economically. Lease payments are treated as an operating expense for tax purposes. All applications are subject to lender credit approval.