Quick Answer

New equipment financing typically runs 5–8% APR with 10–15% down; used equipment financing runs 6.5–11% APR with 0–20% down depending on credit (0% available for qualified borrowers). Most lenders cap used equipment at 10–15 years old and 7,000–10,000 hours. OEM certified pre-owned programs (Cat Certified, John Deere CPO, Haas CPO, Bobcat Certified) bridge the gap — offering lower rates and better terms than independent used. Caterpillar, Komatsu, and John Deere equipment holds value so well that used financing is often the best decision for contractors looking to scale quickly.

New vs Used Equipment Financing Guide

New vs Used Equipment Financing

Across every equipment category — excavators, tractors, CNC machines, forklifts, and medical imaging — this guide compares financing rates, down payment requirements, OEM certified pre-owned programs, age and hour limits, and the decision framework for when used equipment makes the best financial sense.

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5–8%New Equipment APR Range
6.5–11%Used Equipment APR Range
10–15 yrMax Age Most Lenders
OEM CPOPrograms Available

Key Facts: New vs Used Equipment Financing

New Equipment Rate5–8% APR
Used Equipment Rate6.5–11% APR
Max Age (most lenders)10–15 years
New Down Payment10–15%
Used Down Payment15–25%
OEM CPO ProgramsCat, Deere, Haas, Bobcat, Volvo

Side-by-Side Comparison

New vs OEM Certified Pre-Owned vs Independent Used

The table below compares the three primary purchase paths across the factors that most affect your financing outcome. OEM CPO programs represent the optimal middle ground for most buyers — significant price savings over new, with warranty protection and better lender terms than independent used. For specific category guidance, see our excavator financing guide and new vs used excavator comparison.

Factor New Equipment OEM Certified Pre-Owned Independent Used
Price premiumFull price30–50% below new40–65% below new
WarrantyFull OEM warrantyOEM limited warrantyNone / as-is
InspectionN/AOEM factory inspectionBuyer's responsibility
Financing rate5–8%6–8.5%7–11%
Down payment10–15%15–20%20–30%
Age0Usually <5 yearsUp to 10–15 years
Section 179Full purchase priceFull purchase priceFull purchase price
Resale confidenceHighestHigh (OEM backed)Variable
WINNER✓ New features✓ Best value + warranty✓ Lowest price

Rate Comparison by Category

New vs Used Financing Rates by Equipment Type

Financing rate premiums for used equipment vary significantly by category. Equipment with strong OEM CPO programs and established secondary markets (Cat excavators, John Deere tractors, Haas CNC) carries the smallest used premium. Equipment in newer or less liquid markets (Chinese equipment, older medical devices) carries larger premiums. For category-specific financing, see our guides on Caterpillar equipment financing and John Deere equipment financing.

Equipment TypeNew RateUsed Rate IncreaseCPO Available?Max Age (lender)
Cat/Komatsu Excavators5.5–7.5%+1–1.5%Yes (Cat CPO, Komatsu Remarketing)12–15 yr
John Deere Tractors0–6.9% (OEM promo)+1.5–2%Yes (JD PowerGard CPO)10–15 yr
Haas CNC Machines6–8%+1–2%Yes (Haas Certified Pre-Owned)10–12 yr
Forklifts (Toyota/Crown)5.5–7.5%+1–2%Limited (brand-specific programs)8–12 yr
Commercial HVAC6–8.5%+1.5–2.5%No8–10 yr
Wood Chippers (Vermeer)6–8%+1–2%Limited (Vermeer Certified)10–12 yr
MRI / Medical Imaging5.5–7.5%+1.5–3%Some OEM (GE, Siemens CPO)6–10 yr
Chinese Equipment (XCMG/SANY)7–10%+2–3%No5–8 yr

OEM CPO Programs

Major OEM Certified Pre-Owned Programs

OEM certified pre-owned programs are the single most important factor in bridging the financing gap between new and independent used equipment. These programs provide factory-backed inspection, warranty, and often OEM financing rate eligibility — dramatically improving terms over independent used. Understanding which programs exist before searching for used equipment can save you tens of thousands of dollars over the financing term. For startup-specific used equipment financing strategies, see our startup equipment financing guide.

🇺🇸 United States

Cat Certified Used

Caterpillar's comprehensive CPO program covers excavators, bulldozers, wheel loaders, motor graders, and most Cat product lines. Each machine undergoes a 140+ point inspection, receives Cat-genuine parts repairs, and comes with a 12-month/unlimited-hour warranty. equipment lenders offers specific CPO rate programs through authorized Cat dealers. Available through 200+ US Cat dealer locations.

🇺🇸 United States

John Deere CPO (PowerGard)

John Deere's PowerGard Protection plan and Certified Pre-Owned program covers agricultural and construction equipment. CPO machines are inspected by Deere dealers and backed by 12-month warranty extensions. equipment lenders specifically prices CPO machines more favorably than independent used. Seasonal 0% promotional financing sometimes extends to CPO agricultural equipment at Deere dealers.

🇯🇵🇺🇸 Japan / US

Komatsu Remarketing

Komatsu's remarketing program provides certified used excavators, wheel loaders, and bulldozers through authorized Komatsu dealers. Komatsu KOMTRAX telematics data is used to verify machine history. equipment lenders provides favorable rates for remarketed machines. Strong resale values for Komatsu PC210 and PC360 class equipment make CPO particularly attractive for 15–25 ton excavator buyers.

🇺🇸 United States

Haas Certified Pre-Owned

Haas Automation's CPO program covers used CNC mills, lathes, and turning centers sold through Haas Factory Outlets (HFOs). Certified machines receive inspection, cleaning, and certification by Haas technicians. Haas Financial Services offers competitive CPO financing. Haas CPO is particularly relevant for manufacturing businesses adding capacity with a second or third machine at reduced cost.

🇰🇷🇺🇸 Korea / US

Bobcat Certified

Bobcat (owned by Doosan Bobcat) offers certified used compact equipment including skid steers, mini excavators, and telehandlers through Bobcat dealer networks. Certified machines undergo 150+ point inspection and receive a limited warranty. equipment lenders provides dealer-backed financing programs. Bobcat's strong brand recognition in the US makes their CPO program one of the more liquid in compact equipment.

🇸🇪 Sweden

Volvo CE Certified Used

Volvo Construction Equipment's certified used program covers excavators, wheel loaders, and articulated haulers. CE-certified machines are inspected at Volvo dealers and come with a 12-month warranty. Volvo Financial Services provides financing programs for certified used equipment. Particularly strong for articulated dump trucks and large wheel loaders in the 30-ton+ class.

🇩🇪 Germany

Liebherr Certified

Liebherr's used equipment certification program covers cranes, earthmoving equipment, and concrete technology. Liebherr's premium positioning means certified used machines carry strong price premiums but also the best warranty support for large equipment. Particularly relevant for large excavator (40+ ton) buyers where an independent used machine with a major failure is a catastrophic financial risk.

🇺🇸 United States

JLG Certified Used

JLG (a subsidiary of Oshkosh Corporation) offers a certified used program for aerial work platforms, boom lifts, and scissor lifts through authorized JLG dealers. Certified machines include inspection documentation and warranty coverage. Particularly important for rental companies and contractors managing OSHA compliance on elevated work platforms where equipment documentation is critical to liability management.

Decision Framework

When to Buy New vs Used — by Business Situation

The new vs. used decision is not universal — it depends on your business stage, credit profile, intended utilization, and equipment category. Use this framework alongside our detailed category guides: new vs used excavator, equipment financing credit requirements, and how commercial equipment financing works.

Buy New when: You qualify for OEM promotional financing (0–2.9%), you plan 5+ year high-utilization ownership, you need warranty coverage during the entire loan term, you're building a fleet where resale value matters for future trade cycles, or technology changes in your category (CNC precision, GPS guidance, emissions compliance) make new features operationally essential.

Buy OEM CPO when: You want meaningful price savings (30–50%) over new with warranty protection, you're an established business with 640+ credit and 20% down available, you're adding a second or third machine of a type you already know how to maintain, or new delivery times are 6–12+ months and you need equipment now.

Buy Independent Used when: You're a startup limiting initial capital exposure, you have the mechanical expertise to evaluate and maintain older equipment, you're buying backup or occasional-use equipment that doesn't justify new pricing, or the price discount is so large (40–65%) that it makes financial sense even at higher financing rates and with no warranty. Section 179 deductions apply fully to used equipment purchases, preserving the tax advantage of ownership regardless of purchase path.

Equipment Financing

0% Down Available on All Brands

Axiant Partners finances all major equipment brands — Caterpillar, Komatsu, John Deere, XCMG, SANY, and 200+ more. 0% down available for qualified borrowers regardless of brand. Terms 36–84 months.

  • ✓ 0% down for qualified borrowers
  • ✓ All brands including XCMG and SANY
  • ✓ New and used equipment
  • ✓ Startups and established businesses
  • ✓ Decision in 24–48 hours

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Common Questions

New vs Used Equipment Financing — FAQ

How much higher is the interest rate on used equipment vs new?
For most commercial equipment categories, used equipment financing runs approximately 1–3% higher APR than new equipment. New Cat/Komatsu excavators typically finance at 5.5–7.5% APR through OEM programs. Used Cat CPO excavators run approximately 6–8.5% APR — about 1–1.5% higher. Independent used equipment without certification runs 7–11% APR depending on age, condition, and brand. The rate premium reflects increased lender risk from unknown maintenance history, reduced collateral liquidity for older machines, and the absence of OEM warranty protection. For Chinese brands (XCMG, SANY), new equipment already runs 7–10%, and used rates add another 2–3%. The rate premium for used equipment is generally worth accepting given the substantial purchase price reduction compared to new — a 1–2% rate increase on $150,000 (used price) typically costs far less over 5 years than the $120,000 price difference versus new.
What is Cat Certified Pre-Owned and how does it affect my financing rate?
Cat Certified Pre-Owned is Caterpillar's factory-backed used equipment program offered exclusively through authorized Cat dealers. To qualify, a machine must pass Caterpillar's multi-point inspection, have any needed repairs completed with genuine Cat parts, and meet age and hour eligibility criteria (typically under 7–10 years old and under 5,000 hours). Certified machines receive a Cat-backed 12-month/unlimited-hour limited warranty on major components. For financing, Cat CPO status can reduce the used equipment rate premium by 0.5–1%, bringing rates close to new equipment levels through equipment lenders or third-party lenders who recognize the CPO documentation. The inspection report and warranty documentation also smooth the financing process by providing lenders with a verified condition baseline that eliminates the uncertainty inherent in independent used purchases — often the biggest barrier to favorable used equipment financing terms.
What is the maximum age of equipment a lender will finance?
Maximum age limits vary by brand, category, and lender. For tier-1 brands (Cat, Komatsu, John Deere), most lenders accept equipment up to 12–15 years old. For tier-2 brands (Volvo, Hitachi, Liebherr), maximum age typically ranges from 10–12 years. For Chinese brands (XCMG, SANY), lenders often cap financing at 5–8 years due to uncertainty about parts availability and secondary market liquidity. CNC machine tools (Haas, Mazak, DMG Mori) generally face 10–12 year limits. Medical equipment (MRI, CT scanners) faces the tightest limits at 6–10 years due to rapid technology obsolescence and regulatory factors. Forklifts from major brands (Toyota, Crown, Hyster) are typically financeable to 8–12 years. These limits are not universal — specialty heavy equipment lenders sometimes extend beyond standard thresholds for well-documented, well-maintained machines from major manufacturers.
Can I get 0% financing on new equipment?
Yes, 0% APR promotional financing is available on new equipment from several major OEM finance programs, but with important conditions. equipment lenders regularly offers 0% for 48–60 months on selected new agricultural and construction equipment, typically tied to specific model years and seasonal promotional periods. equipment lenders offers 0% or 0.9% APR promotions at industry trade shows and dealer events for qualified buyers on current-model-year equipment. Kubota, Case, and New Holland also run 0% promotional periods seasonally on agricultural equipment. To qualify for 0% financing, you typically need 680+ personal credit, 2+ years in business, a strong balance sheet, and must be financing a current-model-year machine during the active promotional period. These deals are time-limited and require preparation — arrive at trade shows with your business financials to take immediate advantage.
Is a John Deere CPO tractor better than buying used from an auction?
A John Deere Certified Pre-Owned (PowerGard Protection) tractor offers significant advantages over buying at auction: factory-backed inspection and reconditioning, genuine Deere parts repairs, a 12-month warranty, and access to equipment lenders's favorable CPO financing rates. Auction purchases (Ritchie Bros., Purple Wave, regional farm equipment auctions) typically offer 20–30% lower prices than CPO machines, but with no warranty, no inspection guarantee, no verified service history, and higher financing rates of 1.5–3% above CPO rates. The right choice depends on your mechanical expertise, risk tolerance, and capital. An experienced operator who can evaluate a tractor thoroughly and has a trusted mechanic available can capture genuine value at auction. A less experienced buyer who relies entirely on the machine's reliability for active contracts should seriously consider paying the premium for CPO peace of mind and documentation.
Does Section 179 apply to used equipment purchases?
Yes, Section 179 applies fully to used equipment purchases for business use — not just new equipment. The Tax Cuts and Jobs Act of 2017 specifically expanded Section 179 eligibility to include used equipment, provided the equipment is new to you (you have not previously owned or used it). For 2024, the Section 179 deduction limit is $1,160,000, with a phase-out beginning at $2,890,000 in total equipment purchases. A used John Deere 8R tractor purchased at auction for $175,000 qualifies for the full $175,000 immediate deduction in the year of purchase — potentially saving $40,000–$60,000 in taxes at typical business tax rates. Bonus depreciation (80% in 2023, declining in subsequent years) also applies to used equipment. Both tax benefits apply equally to loan and $1 buyout lease purchases, making used equipment acquisition highly tax-efficient when financed for ownership.
What happens if lenders won't finance the used equipment I want to buy?
If your target used equipment falls outside standard lender guidelines — too old, too many hours, obscure brand, or poor condition — several alternative paths exist. First, specialty heavy equipment lenders (as opposed to general commercial banks) often have more flexible age and hour policies for well-maintained machines from reputable brands. Working with a broker like Axiant Partners gives you access to these specialty lenders without having to find them yourself. Second, if purchasing from a dealer, many dealers carry in-house financing for equipment they know well. Third, an SBA 7(a) loan can sometimes finance older equipment that banks won't touch directly, using equipment as part of broader business collateral. Fourth, if you own equipment with equity (a paid-off machine worth $50,000+), a sale-leaseback or equipment equity loan can generate capital to purchase the used machine outright without requiring lender approval on the specific asset's age or condition.
How do hour meters affect used equipment financing eligibility?
Hour meters are the second most critical factor in used equipment financing eligibility after age, and lenders use hours to estimate remaining useful life and project collateral value through the loan term. For excavators and construction equipment, most lenders cap financing at 7,000–10,000 hours. A Cat 320 with 4,000 hours has significantly more remaining life than one with 9,000 hours — lenders price that difference into rate and down payment requirements. Under 3,000 hours on a 5-year-old machine represents excellent utilization; over 8,000 hours on any machine requires specialty lending. Tampering with hour meters is fraud and illegal — lenders increasingly verify hours through OEM telematics systems (Cat Product Link, Komatsu KOMTRAX) that record hours independently of the cab display. Always request telematics reports when evaluating used equipment with significant hours, and be skeptical of any machine where the seller is unable to provide telematics data for a machine that should have it.

Finance New or Used Equipment — Get Competing Quotes

Whether you're buying new at OEM promotional rates, Cat CPO with warranty protection, or independent used at maximum savings, get competing quotes from lenders who understand your equipment category.

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Informational resource only. Not an offer of credit or guarantee of approval. Terms vary by lender and equipment type.