Why trade equipment is different
Trade gear earns money the day it arrives on site, but it also wears hard. Lenders tend to look closely at the age and condition of the asset, because a ten-year-old excavator and a new compressor hold value very differently. Understanding that helps you pick a term that does not outlast the asset's useful life.
| Category | Examples | Worth considering |
|---|---|---|
| Vehicles | Utes, vans, light trucks | Commercial use, registration, insurance |
| Site machinery | Mini excavators, skid steers, rollers | Hours, service history, resale demand |
| Trailers | Plant, box, tipper | Condition and compliance |
| Power tools and plant | Compressors, generators, scaffolding | Short life vs term length |
New or used
New equipment often comes with a warranty and possibly a longer available term. Used equipment can be cheaper to buy, but lenders may restrict the term based on age. Private sales and dealer sales can be treated differently, so ask before you commit to a purchase.
Practical preparation
- Get a written quote or invoice that identifies the asset (make, model, serial or VIN).
- Collect your ABN, licence details where relevant, and ID for owners or directors.
- Work out the repayment you can sustain through a quiet month, not only a busy one.
- Ask your accountant how the asset will be treated for tax.
Moving up in size? You may be able to fund part of the next purchase by selling your current equipment.
Illustrative only. Any rate or repayment you see online is an example and may exclude fees. Always check the comparison rate and total cost. See MoneySmart for general guidance on borrowing.
Next step. Ready to look at options? Start your enquiry.