Mini digger finance explained
What a mini digger costs on finance, how hire purchase and leasing compare, and what to check before you sign. Written for landscapers, groundworkers, builders and hire companies.
What is mini digger finance?
Mini digger finance lets you spread the cost of a micro or mini excavator over monthly payments, usually over 2 to 5 years. Most buyers use hire purchase, so the machine is theirs at the end. As a rough guide, a mini digger costing around £28,000 works out at about £500 to £600 a month, depending on the deposit, term and rate.
- New or used: both can be financed, with age limits on used machines
- Attachments: buckets, breakers and a trailer can often be included
- Who it suits: landscapers, groundworkers, builders and hire companies adding small kit
Example monthly payments
| Machine | Price (ex VAT) | 10% deposit | Term | Est. monthly |
|---|---|---|---|---|
| Micro digger | £20,000 | £2,000 | 36 months | £560 |
| Micro digger | £20,000 | £2,000 | 48 months | £435 |
| 1.5t mini digger | £28,000 | £2,800 | 48 months | £609 |
| 1.5t mini digger | £28,000 | £2,800 | 60 months | £505 |
| 3t mini digger | £45,000 | £4,500 | 48 months | £979 |
| 3t mini digger | £45,000 | £4,500 | 60 months | £812 |
Illustration only, not an offer of finance. Worked out at an example rate of 7.5% a year, excluding VAT and fees. Prices are examples; real machine prices, rates and terms vary. Try your own figures in the repayment estimator.
What affects the cost
Price and age
Bigger and newer machines cost more. Used machines are cheaper but may get a shorter term, as lenders often limit the age at the end of the agreement.
Deposit and VAT
Hire purchase usually needs a deposit, often around 10%, plus the VAT on the price. A lease usually needs one or more rentals in advance instead.
Insurance and servicing
Lenders require the machine to be insured. Budget for servicing, wear parts and, for lifting work, LOLER thorough examinations.
Attachments and transport
Buckets, a breaker, a quick hitch and a plant trailer can often go on the same agreement. Check your towing vehicle and trailer ratings.
Hire purchase or lease?
Most mini digger buyers choose hire purchase: fixed monthly payments, and the machine is yours after the last one. You pay the VAT upfront, and you can claim capital allowances.
A lease can suit you if you replace kit every few years or want to spread the VAT across the rentals. You use the machine but never own it.
Should you hire or finance a mini digger?
If you hire a mini digger often, financing your own can cost less over time. A simple test: add up what you spend on hire in a typical month, then compare it with the monthly finance payment plus insurance and servicing.
Owning may make sense if…
- You need a digger most weeks of the year
- Your monthly hire bill is higher than the finance payment plus running costs
- You lose work or time waiting for hire machines
- You want to hire it out yourself when it is not in use
Hiring may make sense if…
- You only need a digger now and then
- Jobs need different sizes of machine
- You do not want to handle servicing, insurance and storage
- You are not sure yet how much work you will have
Before you finance a mini digger
- A recognised make with UK dealer support and parts. Some lenders are cautious about unbranded imported machines
- For used machines: hours, service history, and the serial number matching the paperwork
- Tracks, pins and bushes, hoses and the slew ring checked for wear
- Security: an immobiliser, a tracker and CESAR marking reduce theft risk and can help with insurance
- Your trailer and towing vehicle are rated for the combined weight
- Quotes compared on the total amount payable, not just the monthly payment
Common questions
How much is a mini digger on finance a month?
It depends on the price, deposit, term and rate. As an illustration, a £28,000 mini digger with a 10% deposit over 48 months at 7.5% works out at about £609 a month, excluding VAT and fees.
Can I get mini digger finance as a sole trader?
Often, yes. Lenders will look at your trading history and accounts. If you are a sole trader or a small partnership borrowing £25,000 or less, the agreement is usually regulated under the Consumer Credit Act, which gives you extra protections, such as a right to withdraw within 14 days.
Can I finance a used mini digger?
Yes. Many lenders finance used mini diggers from dealers, auctions and private sellers. They will check the machine's age, value and paperwork, and may offer a shorter term on older machines. Read our guide to financing used and auction machines.
Can I include attachments and a trailer?
Usually. Buckets, breakers, quick hitches and plant trailers bought at the same time can often be added to the same agreement.
Do I need a deposit?
Usually. Hire purchase normally needs a deposit, often around 10%, plus VAT. Some lenders may accept less depending on your trading history.
Is it better to finance a new or used mini digger?
New machines come with a warranty, and limited companies can deduct the full cost under full expensing. Used machines cost less to buy and can still qualify for the Annual Investment Allowance. Ask your accountant which suits your business.
This guide is general information, not financial or tax advice. Example payments are illustrations, not offers of finance. Plant Hire Finance is a specialist plant hire finance introducer, not a lender or broker. Lenders set rates and terms, and your accountant can advise on tax.
More plant finance guides
Hire purchase or leasing for plant?
Ownership, VAT, tax relief and end-of-term options compared.
Read the guide →Financing used and auction machines
What lenders check, auction payment deadlines and a buyer's checklist.
Read the guide →Plant hire finance guides
Every guide in one place, with new ones added regularly.
Browse guides →Ready to finance a mini digger?
Tell us the machine and your budget. We will introduce you to a specialist plant finance broker. Free and no obligation.