earthmoving · Equipment & asset finance
Grader finance
A grader is bought for road maintenance contracts, subdivisions and mine site work. We match the term to the contract length so the machine is not still being paid for long after the job ends.
What is grader finance?
Grader finance is funding for a motor grader used to shape roads, pads, batters and haul routes, secured against the machine. Graders are long-life assets with strong resale in Australia, particularly in regional and mining regions, so lenders are generally comfortable with longer terms on well-maintained machines.
Motor graders do the finishing work that makes a road a road: trimming pavement, shaping table drains, maintaining unsealed roads and forming haul routes. In Australia the machine is central to council road maintenance, rural contracting and mine site services, which means the buyer is often bidding for a multi-year contract rather than a single job. Regional operators frequently run one grader across several council districts, which makes float and travel costs part of the buying decision.
That contract profile should shape the finance. If the work is a three-year council maintenance contract, a term that leaves a manageable balloon at year three gives you the option to upgrade or refinance when the contract is renewed. If the machine is going into general civil work, a longer straight term with no balloon is usually simpler. Either way the interest and depreciation are generally deductible when the machine is used for business.
Grader finance at a glance
| Typical price range | $90,000 – $900,000 |
|---|---|
| Finance term | Up to 84 months |
| Useful life | About 18 years |
| New or used | Used graders make up most Australian sales, with well-maintained 15-year-old machines still working; new purchases are typically council or large-contractor buys. |
| Indicative rates (Chattel mortgage) | 6.9% – 14.5% p.a. · rate history |
| Finance structures | Chattel mortgage (recommended), Equipment loan, Finance lease |
How lenders assess grader finance
Graders hold value unusually well, so lenders will often fund machines older than they would accept in other plant categories. Circle and drawbar wear, blade condition and transmission history drive valuation. Ex-council machines are attractive to lenders because service records are usually complete. First-time buyers should expect questions about who will operate the machine, since graders need experienced operators. Deposits of 10 to 20 per cent are common on machines over 15 years, and private sales need PPSR clearance and a proper sale agreement.
Before you buy
- Inspect the circle, drawbar and ball for wear — rebuilding these is the single biggest recurring cost on a grader.
- Ex-council machines often have low hours and full service books, and are worth paying a premium for.
- Check whether GPS or laser levelling is fitted and transferable, as it materially changes what work the machine can win.
Commonly financed
Caterpillar 12M and 140M · Komatsu GD655 · John Deere 670G · Volvo G930 · Caterpillar 120M
Estimate grader repayments
- Number of repayments
- 60
- Balloon at end of term
- $99,000
- Total interest (est.)
- $140,121
- Total repaid (est.)
- $635,121
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is grader finance?
Grader finance is a secured loan or lease used to buy a motor grader, with the machine as security. Terms usually run 48 to 84 months, and because graders are long-life assets lenders will often consider older machines than they would in other categories.
Why do graders hold their value?
Graders have long mechanical lives, a limited number of manufacturers and steady demand from councils, rural contractors and mine sites. A well-maintained machine can still be earning at 15 to 20 years old, which supports resale values and lender appetite.