Excavator Financing
New and used excavator loans and leases, from compact minis to 30-ton-plus production machines.
New and used excavator loans and leases, from compact minis to 30-ton-plus production machines.
Updated October 2026
Excavators are among the easiest machines to finance because they hold value and sell quickly in the used market. Expect 6–22% APR over 2–7 years with 0–20% down. A compact excavator usually fits a 36–48 month term and a mid-size machine 60–72 months. Buckets, thumbs, hammers and couplers bought with the machine can go into the same financing when they are on the same invoice.
| Typical amount | $30K for a mini to $700K+ for a large production machine |
|---|---|
| Rates | 6–22% APR |
| Terms | 36–48 months on compact machines; 48–72 months on mid-size and large |
| Down payment | 0–20% |
| Credit | 600+ typical |
| Attachments | Financed with the machine when on the same invoice |
| Used machines | Hours, undercarriage and age at term end drive the approval |
| Speed | 1–3 business days for a clean file |
| Equipment | New | Used |
|---|---|---|
| Mini (1–3 tons) | $30K–$60K | $18K–$45K |
| Compact (3–6 tons) | $60K–$110K | $35K–$80K |
| Midi (6–10 tons) | $110K–$190K | $60K–$130K |
| Mid-size (11–25 tons) | $190K–$300K | $80K–$200K |
| Large (30+ tons) | $350K–$700K+ | $150K–$450K |
Typical 2026 pricing for common configurations. A hydraulic thumb, hammer, quick coupler or tiltrotator adds to the invoice; a tiltrotator alone can add $30K or more. Electric compact models carry a premium over diesel.
Illustrative level monthly payments on the amount financed. Rates depend on credit, time in business, the machine and the lender.
| Example | Financed | APR · term | Payment |
|---|---|---|---|
| Used mini excavator with thumb, fair credit | $40K | 18% · 36 mo | $1,450/mo |
| Compact excavator, 5-ton class | $85K | 10% · 48 mo | $2,160/mo |
| Used mid-size excavator, fair credit | $140K | 20% · 48 mo | $4,260/mo |
| New mid-size excavator | $240K | 9% · 60 mo | $4,980/mo |
| Used mid-size excavator | $140K | 13% · 48 mo | $3,760/mo |
| Large excavator with hammer | $520K | 10% · 72 mo | $9,630/mo |
An excavator is close to ideal collateral. Every size class has an active dealer and auction market, mainstream models hold their value well for years, and a lender can resell a repossessed machine quickly. That shows up as longer terms and lower down payments than most equipment of the same price.
The flip side is that condition is priced hard. On a used machine the lender asks for hours, the year, the serial number and photos, and on larger units an inspection. Undercarriage wear is the single biggest variable: tracks, rollers, idlers and sprockets are expensive to replace, and a machine that needs them is worth materially less than one that does not.
Your credit tier sets the down payment and the rate band. The machine’s hours, undercarriage and age at the end of the term set how long a lender will finance it.
| Credit | Typical down payment | Typical APR | Term |
|---|---|---|---|
| 700+ FICO (2+ years in business) | 0–10% new, 10–25% used | 6–14% | 3–6 years |
| 650–699 FICO | 10–25% | 12–18% | 3–5 years |
| 620–649 FICO | 15–25% | 12–20% | 3–5 years |
| 580–619 FICO | 20–30% | 18–22% | 3–4 years |
| Below 580 FICO | Case by case | No standard program | Case by case |
| Check | What most lenders want |
|---|---|
| Machine age | About 10–15 years old or newer at the end of the term for mainstream sizes; an older machine needs a shorter term, more down or an appraisal |
| Hours | Standard terms come easiest under roughly 5,000 hours; past about 10,000 hours, expect a shorter term, more down or an inspection |
| Undercarriage | Remaining life measured on any used machine; one due for tracks, rollers or sprockets is valued lower, which raises the down payment |
| Used machines | Serial number, hours, year and photos; an inspection on larger units |
| Time in business | 1+ year preferred; 2+ years for the best pricing. Under 2 years, a mini or compact machine with 10–20% down is the easiest approval |
| Revenue | $15K+ a month in business deposits, shown on 3 months of bank statements (6 for larger requests) |
Within a tier, a late-model mid-size machine with documented service prices toward the bottom and an older, high-hour unit toward the top. The payment examples above show what that spread costs on the same class of machine.
Fair credit, roughly 580 to 699 FICO, does not usually mean a decline on an excavator. Because the machine holds its value, lenders price the risk through the down payment and the rate instead: at 650 to 699 FICO, 10 to 25 percent down at 12 to 18 percent APR; at 620 to 649 FICO, 15 to 25 percent down at 12 to 20 percent APR; at 580 to 619 FICO, 20 to 30 percent down at 18 to 22 percent APR. Below 580 there is no standard program, and a deal is decided case by case on the down payment, additional collateral and deposits.
Three things move a fair-credit file toward the low end of its band:
The fair-credit rows in the payment examples above show what the higher rate costs against a strong-credit deal on the same class of machine. Rebuilding credit with an on-time equipment payment history also improves the terms on the next machine.
The most common mistake is buying the machine for the biggest job you might bid rather than the work you do every week. An oversized excavator costs more to finance, transport and insure, and it sits more often. Lenders look at the same thing from the other side: does the work you already have support this payment?
A simple test before you apply: take the monthly payment, add insurance, maintenance and transport, and compare it with what you would pay to rent the same class of machine for the days you actually use it. If you would rent it most working days of the year, owning wins. If it would sit half the season, rent or buy smaller.
Used excavators typically cost 30–50% less than new, and they are among the most commonly financed used machines. What to check, and what the lender will care about:
Excavators are not titled like trucks, so the paper trail is a bill of sale plus the lender’s UCC filing. At an auction, get pre-approved before you bid.
Buckets, hydraulic thumbs, breakers, compactors, augers and quick couplers bought with the excavator go into the same financing when they are on the same invoice. So can the trailer to haul it. Buying attachments later on a card or out of cash is the expensive way to do it.
If you are adding a machine and a truck at the same time, one application can cover both. See dump truck financing for the hauling side, or heavy equipment financing for multi-machine packages.
A mini or compact excavator is the easiest first machine to finance. The ticket is small enough that lenders will work with businesses under two years old, usually with 10–20% down and a solid personal credit score, and the resale market is broad. Landscapers, utility contractors, plumbers, fence and pool installers and small site-work companies all use them, which keeps demand for used units steady.
Bay Street’s minimum is $25,000, which covers nearly every new compact excavator and most used ones once attachments are included.
If you rotate machines every three to five years to stay under warranty, a fair-market-value lease keeps payments lower and hands the resale risk to the lessor. If you keep excavators eight years or more, an equipment loan or $1 buyout lease is cheaper over the life of the machine, and you own it at the end.
A financed excavator qualifies for Section 179 like a cash purchase: up to $2,560,000 for tax years beginning in 2026, if the machine is placed in service by December 31. The equipment financing guide covers the lease-versus-loan math, and your CPA should confirm the tax treatment.
What each structure costs on a new mid-size excavator: $240,000 over 60 months at 9% in every row, so only the structure differs. The leases assume no down payment, though many lessors collect the first payment, or the first and last, at signing.
| Structure | Upfront | Monthly | At the end | Total if you keep it |
|---|---|---|---|---|
| Loan, 10% down | $24,000 | $4,480 | You own it | $293,030 |
| $1 buyout lease | $0 | $4,980 | Buy it for $1 | $298,920 |
| Fair-market-value lease | $0 | $4,030 | Return it, or buy at market value (assumed $72,000) | $313,640 |
For taxes, a $1 buyout lease is usually treated like a purchase, so Section 179 applies as it does to a loan. A fair-market-value lease is usually true leases: you deduct the payments and the lessor takes the depreciation. Confirm with your CPA. For the general comparison, see leasing vs financing in the equipment financing guide.
Rent to own an excavator usually means a dealer rental with a purchase option. Dealer rent-to-own is a rental first: you pay rental rates, and only part of each payment is credited toward the purchase price if you buy within the option window. The effective cost of owning that way is usually higher than any row above. It earns that cost when the work is uncertain and you may hand the machine back. If you already know it will be busy, the $1 buyout row gives the same path to ownership for less. On an FMV lease, the hour allowance and the return conditions on the undercarriage and bucket drive most end-of-lease charges.
Finance the excavator with equipment financing, where the machine secures the rate. Fuel, operator payroll and mobilization between draws are better funded with working capital, which is based on deposits rather than collateral. For contractor-specific strategy, see construction equipment financing, or apply once at equipment financing and we will compare offers across 1,800+ funding partners.
Yes. Used excavators are among the most commonly financed used machines. Lenders look at hours, undercarriage condition and how old the machine will be at the end of the term, and may ask for photos, service records or an inspection on larger units.
Financed over 60 months at 9% APR, $250,000 is about $5,190 a month. A compact excavator financed at $85,000 over 48 months at 10% is about $2,160 a month.
Most lenders look for 600 or higher. Lower scores can still qualify with a larger down payment because the excavator holds its value, and strong monthly deposits help as much as the score.
With fair credit, plan on a larger down payment rather than a decline, because an excavator holds its value: at 650 to 699 FICO, 10 to 25 percent down at 12 to 18 percent APR; at 620 to 649 FICO, 15 to 25 percent down at 12 to 20 percent APR; at 580 to 619 FICO, 20 to 30 percent down at 18 to 22 percent APR. Below 580 FICO there is no standard program, and a deal is decided case by case on the down payment, extra collateral and deposits.
Yes. Buckets, thumbs, hammers, couplers and similar attachments can go into the same financing when they are on the same invoice as the machine. A trailer to haul it can be included too.
If you would rent the same class of machine most working days of the year, financing is usually cheaper and you build equity. If the machine would sit for much of the season, renting or buying a smaller machine keeps your costs lower.
Yes. Mini and compact excavators are the easiest first machine to finance. Businesses under two years old usually need 10 to 20 percent down and solid personal credit.
Yes, through dealer rent-to-own programs: rentals that credit part of each payment toward a purchase if you buy within the option window. They usually cost more to own than financing. On a new mid-size excavator at $240,000 over 60 months at 9%, a $1 buyout lease runs about $4,980 a month, and a fair-market-value lease about $4,030 if the lessor assumes a $72,000 residual. If the machine will be busy, the $1 buyout lease is the lower-cost path to ownership.
One application goes to 1,800+ funding partners, with no impact on your credit score. Send a quote or invoice and we will come back with real numbers.
