Also called: Age at term end, End-of-term age
Asset age at end of term
Asset age at end of term is the age an asset will have reached when the finance contract finishes, calculated from its build or compliance date. Lenders use it, rather than current age, to set maximum terms on used equipment and vehicles.
What is an asset age at end of term?
Asset age at end of term is the age an asset will have reached when the finance contract finishes, calculated from its build or compliance date. Lenders use it, rather than current age, to set maximum terms on used equipment and vehicles.
Example
A 2014 prime mover financed in 2026 over five years would be 17 years old at term end, which sits at the edge of many policies.
Why it matters
It explains why an older asset attracts a shorter term, and why a slightly newer unit can allow a better structure.