Used Construction Plant Finance UK

The Age Rule - What Lenders Actually Accept

Every lender has an age policy for used plant. This is typically expressed as the maximum age of the asset at the end of the finance term - not at the start. So a 10-year-old machine on a 5-year HP agreement would be 15 years old at the end of term, which exceeds most lenders' limits.

Under 3 years old	Lenders on our panel. Rates close to new plant. Best conditions - most lenders treat late-used plant very similarly to new in terms of appetite and pricing.
3–7 years old	Full lender panel available. Rate premium of 1-2% over new plant equivalent. Condition and hours become relevant. Known brands (JCB, Komatsu, Volvo, Caterpillar) preferred. Service history documentation helpful.
7–10 years old	Good lender appetite - most specialist lenders active here. Rate premium of 2-3%. Finance term limited to ensure end-of-term age limit is met (commonly 10-12 years). Engineer's inspection more likely required above £50k. Deposit often required.
10–15 years old	Narrower lender panel. Shawbrook, Aldermore, Haydock and Time Finance are most active. Rate premium of 3-5%. Shorter terms (24-36 months typical). Engineer's inspection usually required. Deposit of 20-30% typically required. Condition and provenance critical.
Over 15 years old	Specialist lenders only - primarily Shawbrook and Haydock for the right asset. Rates of 14-22%+. Short terms. 30%+ deposit. Physical inspection essential. Asset must have demonstrable commercial value and active resale market. Not all assets in this bracket are financeable.

Which Lenders are Best for Used Plant

Lender	Used Plant Appetite	Max Asset Age (end of term)	Rate Premium vs New	Notes
Shawbrook Business Finance	Very Strong	20 years (for right asset)	+1 to 3%	Best lender for older plant and specialist used equipment; genuine appetite for 10-15 year old machines in good condition
Aldermore Bank	Strong	15 years	+1 to 2.5%	Good used plant appetite; accepting for construction sector; strong on 5-12 year old machines
Time Finance	Strong	15 years	+1.5 to 3%	Useful for older used plant with adverse credit; combines non-standard borrower with older asset
Haydock Finance	Strong	15-20 years (selective)	+2 to 4%	Wide appetite for older construction plant; construction sector knowledge; good for 7-15 year old assets
Close Brothers	Moderate	12 years	+0.5 to 2%	Good appetite to 10 years; more selective beyond that; lower rates for the right used asset profile
Lombard	Selective	10 years	+0.5 to 2%	Prefer new or late-used plant; used plant acceptable for established businesses but not their primary market
Novuna	Selective	8 years	+1 to 2%	Better suited to new plant; used plant appetite narrows significantly above 5 years old

What Drives the Rate Up on Used Plant

Age at End of Term	The older the asset at the end of the finance agreement, the higher the lender's residual value risk. A 12-year-old machine at end of term has a narrow resale market; a 5-year-old machine is easier to sell at a reasonable price. This directly affects the rate premium applied.
Hours Worked	Plant age measured in operating hours matters as much as calendar age. A 2015 excavator with 2,000 hours is in very different condition from one with 10,000 hours. Most lenders ask about hours for used plant, and high-hours machines attract additional scrutiny and potentially higher rates or lower LTV.
Provenance and History	Unknown history - no service records, unclear ownership history, private sale with no paperwork - increases lender risk. Plant with full service history from a dealer, with verifiable ownership chain, is lower risk and attracts better terms. Keep documentation as you go - it adds to the plant's financing value.
Brand and Resale Market	JCB, Komatsu, Caterpillar, Volvo, Hitachi and Manitou all have active UK auction and private sale markets with well-established values. Lenders are comfortable pricing these. Obscure or rare brands with no active UK resale market attract a much larger premium - or an outright decline - because the lender's security is harder to value and sell.
Source of Sale	Plant from a reputable dealer - especially a main dealer with warranty - attracts lower rates than private or auction purchases. Dealer warranty provides some protection against undisclosed defects. Auction purchases are the most risky from a lender's perspective (as-is condition, limited recourse) and some lenders will not finance plant bought at auction.

Due Diligence for High-Value Used Plant

For used plant above approximately £50,000, doing your own due diligence before committing to purchase is important - both to protect yourself and to make the finance application as strong as possible.

HPI Check	Verifies the asset is not subject to existing finance, has not been stolen, and has not been written off or scrapped. Run one before you agree to buy - particularly for private sales. Most lenders run their own HPI as part of the finance process, but doing it yourself early flags any issues.
Engineer's Inspection	An independent inspection by a qualified plant engineer. Verifies condition, confirms hours, checks for hidden damage or wear. Cost is typically £150-£300. For plant over 7 years old or above £50,000, it is usually required by the lender - and is strongly advisable for your own protection regardless.
Service History	Ask the seller for all service records. A complete service history from new is ideal. Gaps in service history - particularly for high-hours machines - are a genuine risk indicator. Lenders view complete service records positively; significant gaps can affect terms or approval.
Supplier Invoice	Lenders want a written invoice from the seller confirming the asset details (make, model, serial number, year, hours) and agreed purchase price. Avoid informal handshake deals - a proper invoice also protects you legally if any issues arise after purchase.

Frequently asked questions

What age of used construction plant can I finance?

Most specialist lenders will finance plant up to 10-15 years old at the end of the finance term. Shawbrook and Haydock will stretch to 15-20 years for the right asset. Age is measured at end of term - so a 10-year-old machine on a 5-year HP would be 15 at end of term, which exceeds most lenders' limits. We will tell you exactly which lenders are available for your specific asset age when you enquire.

Is used plant finance more expensive than new?

Yes, typically by 1-3% depending on the asset's age and the lender. Used plant carries higher lender risk - less certainty about condition and residual value - and this is reflected in the rate. Lenders with genuine used plant appetite (Shawbrook, Haydock, Aldermore) have narrower premiums than generalist lenders who treat used plant as an exception.

Does the plant need to come from a dealer?

No - private purchases can be financed. However, lenders prefer dealer purchases, and some lenders will not finance private sales at all. Where you are buying privately, an HPI check and engineer's report become especially important and are often required by the lender. Tell us it is a private purchase when you enquire and we will match you with the right lender.

What is an HPI check and do I need one?

An HPI check verifies that the plant is not subject to existing finance, has not been stolen, written off or scrapped. Most lenders run their own HPI check. For your own protection, running one before agreeing to buy is also advisable - particularly on private purchases. HPI check providers include Experian and specialist plant HPI services.

Do I need an engineer's inspection for used plant finance?

For plant above approximately £50,000 and/or over 7 years old, lenders increasingly require an independent engineer's inspection. The cost is typically £150-£300 and is usually borne by the buyer. Even where the lender does not require one, it is a worthwhile investment for high-value used plant - undisclosed defects can be expensive, and the inspection gives you leverage with the seller if issues are found.

Finance for Used Construction Plant - What Lenders Will and Won't Accept