For operators in landscaping, agriculture, earthmoving and civil works, purchasing new loaders and excavators may be a smart move to increase productivity and output with the same labour force. Many industries are facing the challenges presented by Australia’s very low unemployment rate. Challenges in filling their staffing requirements in order to operate to full capacity. As an option, investing in new machinery which offers greater efficiency and the potential to improve productivity with existing labour numbers, may be a worthwhile strategy to consider. Investments in new loaders and excavators can present many benefits to operators but the real return can often be in securing cheaper equipment finance.
Now may be an especially advantageous time for operators to make those investments in new machinery. Great timing to stay ahead of any possible interest rate rise decision from the RBA, to take advantage of new year special offers and to capitalise on the benefits of temporary full expensing before this measure expires.
But first the decision on which particular makes and models to purchase. To assist with that step, the team at constructionsales has published their end of year wrap on some of the most popular loaders and excavator makes and models for 2022. Popularity based on views to the website and other data.
Compact Track Loaders to Consider
Compact track loaders are extremely versatile to get jobs done easily in hard to access places and to handle the smaller tasks. These handy machines can be used in road repair, grading, snow clearing, digging, trench making and a whole range of other jobs.
The small size can make these machines more easily transportable and a great option for individuals looking to start up as an owner-operator contractor. To assist new operators get into their own business, we offer Low Doc and No Doc Equipment Finance.
Constructionsales reported the most popular brands of this type of machinery in 2022, based on the data collected were:-
- Bobcat’s T590, the S590 and the T870
- Kubota SVL 75
- Caterpillar’s 259D
- Case TR270
- Terex models
Small in Size, Big in Popularity – Mini Excavators
According to the data which was compiled by constructionsales over the year, the mini excavator continues to be one of the most popular machinery items on the market. This is based on the number of visits to the website for this equipment category.
The top brands considered by site visitors were:-
A mini excavator could be another option for new start-up contractors. Have a chat to one of our consultants prior to purchase to find out how cost-effective we could make the machinery finance.
Bobcat currently has a special offer on a Tractor and Mulcher Bundle. The bundle includes the company’s 38hp compact tractor, the front end loader, the 4-in-1 bucket and the 140cm mulcher. All for just $44,950 for those quick to move – offer expires at the end of January.
To see what that price might equate to equipment finance repayments, just head to our Finance Calculator. Tip: the RBA Board is due to announce its next interest rate decision on the first Tuesday in February. Buying in January may beat any possible equipment finance interest rates increases following the RBA February decision.
Range of Equipment Finance to Consider
Equipment finance is not usually rated from a popularity basis as the choice of which finance product is made based on suitability to the individual business objectives. But, over the past few years, since April 2020 actually, there has been greater interest in Chattel Mortgage Equipment Finance.
This is due to the suitability of this loan type for Instant Asset Write-off and temporary full expensing. The very attractive tax measures which were introduced to stimulate the economy at the onset of the COVID-19 pandemic. Temporary full expensing expires at the end of this financial year, so move quickly to receive the tax deductions on offer.
Business operators have a number of equipment finance products to consider including:-
- Chattel Mortgage
- Rent to Buy
- Commercial Hire Purchase
The specifics of each loan type should be considered in relation to the specifics of the business, especially the financial objectives and accounting processes and methods used. The interest rates do vary across the selection of machinery loan products and can vary for different industries, for individual loan applicants and for new and used machinery.
As with most lending markets, interest rates in the equipment finance sector can be affected by decisions made by the RBA. The next rate decision by the RBA is due in early February so getting equipment finance confirmed in January may be a shrewd move.
We can provide confirmed quotes on equipment finance for loaders and excavators even before purchasing for all types of loan types including Low Doc and No Doc loans for new contractors.
For equipment finance on loaders and excavators, contact Jade Equipment Finance on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.