Used vs. New Equipment: What Makes the Most Sense to Finance?

The pros, cons, and what lenders consider before approving your deal

Whether you're buying a crane, directional drill, or an excavator, one of the first decisions you'll face is whether to go used or new. Both can be financed-but which is the better move for your business?

Let’s break down the key differences so you can make the right call.

1. Used Equipment: Lower Cost, But More Scrutiny

Financing used equipment can save you thousands up front. It’s a great option for budget conscious buyers or those expanding an existing fleet.

✅ Lower purchase price
✅ Smaller down payment
✅ Great for experienced operators who know what they’re getting

🔍 What to watch for:

• Age limits - most lenders want equipment less than 10–12 years old

• Clean condition - lenders often ask for photos or inspection

• Private party sellers may be harder to finance (vs. dealers)

2. New Equipment: Easier Approvals, Longer Terms

Lenders tend to prefer new equipment- it holds value longer and is easier to resell if needed. This often means faster approvals and longer financing terms.

✅ Easier to finance, even for newer businesses
✅ Eligible for longer repayment terms
✅ Often includes warranties and dealer support

🔍 Keep in mind:

• Higher upfront cost

• May require a larger down payment

3. What Should You Choose?

If you’re launching your first crew and need to keep costs low, a well-maintained used unit may make sense. But if your work depends on uptime and manufacturer support, new may be worth the investment.

At REC, we finance both- and we’ll help you find the option that fits your job, your budget, and your timeline.