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Excavator Finance · Hire Purchase

Excavator hire purchase

Fund excavator on hire purchase and own it outright at the end of the term. Indicative rates From ~7.6% p.a. (new, prime borrower) — subject to credit.

Quick answer

Excavator finance structured as hire purchase means you own it outright at the end of the term. 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 hire purchase right for excavator?

Heavy plant earns over a long working life, so hire purchase over a longer term lets you match repayments to the asset’s productive use and own it at the end.

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 hire purchase

  • ✓Ownership transfers to you at the end of the term
  • ✓Fixed interest rate and fixed repayments — easy to forecast
  • ✓Claim depreciation and interest on your tax return
  • ✓Up to 100% finance available for established businesses on eligible new assets
  • ✓Asset shows as a fixed asset on the balance sheet

Trade-offs to weigh

  • –The asset shows as a liability on the balance sheet until paid off
  • –Lender holds security over the asset until final payment
  • –Early-termination fees may apply if you exit before the end

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 hire purchase is treated

Ownership during term Lender (security)
Ownership at end of term You — automatic on final payment
Who claims depreciation You
GST treatment Claim GST on asset cost upfront (cash/invoice basis)

See the full breakdown in the hire purchase 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. Hire Purchase is a common way to fund excavator for New Zealand businesses — it means you own it outright at the end of the term. Hire purchase is a fixed-term finance agreement where you pay off the cost of an asset in regular instalments and take ownership at the end. The lender holds security over the asset until the final payment. All applications are subject to lender credit approval.