Quick Answer

A new Cat 320 costs $270,000–$310,000; a 3-year-old used Cat 320 with 3,000 hours typically runs $155,000–$190,000; a 5-year-old model at 5,000 hours runs $115,000–$145,000. New equipment qualifies for OEM promotional financing (often 0–2.9%) and full warranty. Used equipment runs 1–3% higher in financing rate and may require 0–20% down depending on credit (0% available for qualified borrowers) vs. 10–15% for new. The break-even calculation strongly favors new Cat/Komatsu machines if you plan to keep the equipment 5+ years. Used makes most sense for startups, short-duration projects, and lower-utilization applications.

Excavator Financing Decision Guide

New vs Used Excavator — Which Should You Finance?

Buying a new Cat 320 or a 3-year-old used one? This guide compares purchase prices at every age and hour tier, OEM certified pre-owned programs, financing rate differences, warranty trade-offs, and the exact scenarios where buying used makes the most financial sense.

Get Excavator Financing Quotes → 📞 (919) 907-2611
$270K–$310KNew Cat 320 Price
$155K–$190K3-Year Used Cat 320
+1–3%Used Equipment Rate Premium
15–25%Typical Down for Used

Key Facts: New vs Used Excavator Financing

New Cat 320$270,000–$310,000
3-Year Used Cat 320$155,000–$190,000
5-Year Used Cat 320$115,000–$145,000
New Rate5–8% APR
Used Rate6–10% APR
Used Down Payment15–25%

Side-by-Side Comparison

New vs Cat CPO vs Independent Used — Complete Comparison

The comparison below covers the three major purchase paths for a Cat 320-class machine. Understanding each option's financing implications — rate, down payment, warranty, lender requirements — is critical before committing. For a deeper look at OEM financing programs, see our Caterpillar equipment financing guide and Komatsu equipment financing guide.

Factor New Excavator Cat Certified Used Independent Used
Price (20-ton)$270,000–$310,000$155,000–$195,000$95,000–$155,000
WarrantyFull OEM 12–24 moCat Certified 12 moNone (as-is)
Financing Rate5–8% (OEM promos)6–8.5%7–10%
Down Payment10–15%15–20%20–30%
Age Limit (lender)N/AWithin 7–10 yearsMax 10–15 years
Hour Limit (lender)N/AUnder 5,000 hrsUnder 7,000 hrs
Depreciation yr 110–15%Already depreciatedAlready depreciated
Section 179Full deductionFull deductionFull deduction
5-yr Residual55–65%50–60% of purchaseVaries widely
Best For✓ Long-term operators✓ Warranty + savings✓ Lowest entry cost

Price by Age and Hours

New vs Used Cat 320 — Price & Monthly Payment by Condition

The table below provides a realistic price ladder for Cat 320 equipment at each age and hour tier, with estimated monthly payments on a 60-month loan at market rates. The rate assumption increases with age to reflect typical lender pricing. For startup financing considerations, see our guide on equipment financing for startups and how to start an excavating business.

ConditionAgeHoursPriceMonthly (60mo)
New Cat 32020240$270,000–$310,000$5,351–$6,142
Cat Certified Pre-Owned2–3 yr1,500–3,000 hr$175,000–$210,000$3,466–$4,160
Recent Used3–5 yr3,000–5,000 hr$140,000–$175,000$2,773–$3,466
Mid-Age Used5–8 yr5,000–8,000 hr$100,000–$140,000$1,981–$2,773
Older Used8–12 yr8,000–12,000 hr$65,000–$100,000$1,287–$1,981
High-Hour / As-Is12+ yr12,000+ hr$25,000–$65,000$495–$1,287

Monthly payment estimates assume 7–9% APR scaling with age. Actual payments vary by lender, credit profile, and loan term. New rates assume 7% APR; older used rates assume 9–10% APR.

Brand Overview

Major Excavator Manufacturers — New & Used Market

Brand selection dramatically affects both purchase price and financing terms for used excavators. The manufacturers below dominate both the new and secondary market, with varying levels of lender recognition and resale strength. For detailed brand-vs-brand analysis, see our Caterpillar vs Komatsu excavators comparison.

🇺🇸 Irving, TX

Caterpillar

World's most recognized heavy equipment brand. equipment lenders provides competitive OEM financing for new and Cat CPO machines. Used Cat equipment commands the strongest secondary market values and is financed by virtually every major lender. Cat Product Link telematics data provides verifiable hour and maintenance records for used purchases, significantly reducing financing friction.

🇯🇵 Japan

Komatsu

The world's second-largest construction equipment manufacturer. equipment lenders provides OEM programs comparable to equipment lenders. Komatsu KOMTRAX telematics system provides detailed usage history for used machines. Used Komatsu excavators hold value nearly as well as Cat and are financed by all major lenders. Komatsu Remarketing provides CPO-style programs through authorized dealers.

🇺🇸 Moline, IL

John Deere

equipment lenders (now part of equipment lenders) provides competitive OEM financing including 0% promotional periods on new equipment. Deere excavators have excellent lender recognition. John Deere CPO program (PowerGard Protection) provides extended coverage on used machines. Used Deere equipment is financed by all major lenders and holds value well in construction markets.

🇸🇪 Sweden

Volvo Construction Equipment

Swedish manufacturer with strong US dealer presence. Volvo CE Finance provides OEM programs. Used Volvo excavators are recognized by major lenders with moderate to strong residual values. Volvo Certified Used program provides inspection-backed used equipment through authorized dealers. Strong reputation for operator comfort and fuel efficiency.

🇩🇪 Germany

Liebherr

German family-owned company manufacturing large to ultra-large excavators. Liebherr Certified Used program supports the secondary market. Used Liebherr equipment commands premium prices and is recognized by major lenders. Particularly strong in large (40-ton+) applications. Liebherr Financial Services provides OEM financing programs through dealer networks.

🇯🇵 Japan

Hitachi Construction Machinery

Japanese manufacturer with strong North American presence through John Deere dealer overlap (the companies had a long-standing marketing agreement). Used Hitachi ZX-series machines command good residuals and are financed by major lenders. Hitachi has a growing independent dealer network in North America following the end of the Deere partnership.

🇨🇳 China

XCMG

China's largest construction equipment manufacturer with a growing US dealer network. XCMG new machines are financed through specialty lenders at 1–3% above Cat/Komatsu rates. Used XCMG equipment has a thinner secondary market in the US, limiting lender acceptance. Maximum age for used XCMG financing is typically 5–8 years versus 12–15 years for Cat/Komatsu.

🇨🇳 China

SANY

China's second-largest heavy equipment manufacturer with aggressive US market expansion. SANY pricing is typically 35–45% below comparable Cat/Komatsu models. Like XCMG, used SANY equipment requires specialty lenders for financing. The US secondary market for used SANY is developing as the brand's installed base grows, but currently trails Cat and Komatsu significantly in lender recognition.

Decision Framework

When Does Buying Used Make Financial Sense?

The right decision between new and used excavator financing depends on your specific situation. Use this framework to guide your choice:

Buy New when: You plan to use the machine 5+ years with high utilization (1,500+ hrs/year), you need OEM promotional financing (0–2.9%), you want full warranty coverage during the financing term, you're building a long-term fleet with maximized residual value, or you need the latest technology (telematics, fuel efficiency, emissions compliance).

Buy Used (CPO) when: Your budget is limited but you need warranty protection, you're an established contractor with strong credit who can tolerate slightly higher rates, you're expanding capacity and want to control monthly cash flow, or you need a machine quickly and new delivery times are 6–12 months.

Buy Independent Used when: You're a startup with limited capital and need the lowest possible monthly payment, you have a specific short-duration project requiring a machine for 1–2 years, you have strong mechanical expertise to evaluate and maintain older equipment, or you're acquiring backup equipment to supplement your primary fleet.

For more information on Section 179 tax deductions and how they apply to both new and used equipment, or to understand how commercial equipment financing works, see our related guides.

Equipment Financing

0% Down Available on All Brands

Axiant Partners finances all major equipment brands — Caterpillar, Komatsu, John Deere, XCMG, SANY, and 200+ more. 0% down available for qualified borrowers regardless of brand. Terms 36–84 months.

  • ✓ 0% down for qualified borrowers
  • ✓ All brands including XCMG and SANY
  • ✓ New and used equipment
  • ✓ Startups and established businesses
  • ✓ Decision in 24–48 hours

Get a Free Quote in 60 Seconds

Common Questions

New vs Used Excavator — FAQ

How much less expensive is a 3-year-old Cat 320 vs a new one?
A new 2024 Cat 320 medium excavator typically costs $270,000–$310,000 from a Caterpillar dealer. A 2021–2022 Cat 320 with 1,500–3,000 hours and Cat Certified Pre-Owned status typically sells for $175,000–$210,000 — roughly 30–40% below the new price. An independent used 2021 Cat 320 with higher hours (3,000–5,000) from an auction or private party can drop to $140,000–$175,000. The savings are substantial: $60,000–$130,000 less than new, translating to $1,000–$2,500 lower monthly payment on a 60-month loan. The trade-off is higher financing rate (1–1.5% higher for CPO, 2–3% higher for independent used) and reduced or no warranty coverage beyond what Cat CPO provides.
What is Cat Certified Pre-Owned and how does it affect financing?
Cat Certified Pre-Owned (CPO) is Caterpillar's factory-backed used equipment program offered exclusively through authorized Cat dealers. CPO machines undergo a comprehensive multi-point inspection, receive any necessary repairs using genuine Cat parts, and come with a Cat-backed 12-month/unlimited-hour limited warranty covering major components. For financing, Cat CPO status matters significantly — equipment lenders specifically offers favorable rates for CPO machines, typically within 0.5–1% of new equipment rates. Third-party lenders also treat CPO inventory more favorably than independent used, often requiring 15–20% down vs. 20–30% for independent used. The CPO inspection report also reduces buyer risk and speeds lender approval by providing a documented condition baseline that independent used machines typically lack.
Can a startup excavating company finance a used excavator?
Yes, startup excavating companies can finance used excavators, and many lenders actually find used equipment more acceptable for startups because the lower purchase price reduces overall exposure. The most fundable startup scenario involves: 680+ personal credit score, 20–30% down payment, documentation of relevant excavating experience even as an employee at another company, a signed contract or letter of intent from a first customer, and selection of a well-known brand (Cat, Komatsu, John Deere) with strong resale. A used Cat mini-excavator at $35,000–$55,000 is substantially more accessible as a startup entry point than a new $300,000 machine. Build revenue and business credit history first, then scale to larger equipment as cash flow justifies it.
What is the maximum age for used excavator financing?
Most commercial equipment lenders set maximum age limits for used excavators at 10–15 years at the time of loan origination, though this varies significantly by brand and lender. equipment lenders and major banks typically cap used Cat and Komatsu equipment at 12–15 years. For tier-2 brands (John Deere, Volvo, Hitachi), maximum age is often 10–12 years. For Chinese brands (XCMG, SANY), lenders frequently cap at 5–8 years for used equipment, reflecting uncertainty about long-term parts availability and secondary market liquidity. Hour limits typically range from 7,000–10,000 hours for standard equipment finance programs. Specialty lenders who focus exclusively on heavy equipment sometimes extend beyond these thresholds for well-maintained, well-documented machines from major manufacturers.
Does Section 179 apply to used excavators?
Yes, Section 179 of the IRS tax code applies fully to used excavators purchased for business use — not just new equipment. The Tax Cuts and Jobs Act of 2017 expanded Section 179 eligibility to include used equipment, provided the equipment is new to you (meaning you have not previously owned or used it). For 2024, the Section 179 deduction limit is $1,160,000 with a phase-out beginning at $2,890,000 in total equipment purchases. A used Cat 320 purchased for $155,000 could qualify for the full $155,000 immediate deduction in the year of purchase, dramatically reducing the net cost. Used equipment also qualifies for bonus depreciation, though the rate is phasing down from 80% in 2023 over subsequent years. Consult your tax advisor to confirm eligibility for your specific business structure.
What is the financing rate difference between new and used excavators?
New excavators from Cat, Komatsu, and John Deere typically finance at 5–8% APR through OEM programs, with promotional rates sometimes as low as 0–2.9% for well-qualified buyers during OEM incentive periods. Cat Certified Pre-Owned excavators typically run 6–8.5% APR — about 1–1.5% higher than new OEM promotional rates. Independent used excavators from auctions or private sellers typically run 7–10% APR — about 2–3% above new OEM promotional rates. For a $155,000 used Cat 320 financed at 8% vs. the new equivalent at 6% over 60 months, the rate difference adds approximately $155/month to the payment — meaningful but far smaller than the $100,000+ price reduction that makes used appealing in the first place. The rate premium is generally worth accepting given the substantial purchase price reduction.
Is an independent used excavator much riskier than a Cat CPO machine?
An independent used excavator (purchased at auction, from a private party, or from a non-Cat dealer) carries meaningfully higher risk than a Cat CPO machine, primarily because there is no factory-backed inspection, warranty, or verified parts documentation. Key risks include: unknown maintenance history, possible undisclosed deferred maintenance, potential hour meter manipulation on older machines, and difficulty securing equipment lenders or prime lender financing. That said, experienced contractors buying from reputable auction platforms (Ritchie Bros., IronPlanet) with published inspection reports, or from established used equipment dealers with documented service records, can acquire excellent machines at 20–30% below CPO pricing. An independent mechanic or dealer inspection before purchase is non-negotiable for any independent used transaction exceeding $50,000.
How do I find a reliable used excavator from a dealer or auction?
The most reliable sources for used excavators, in descending order of confidence, are: Cat Certified Pre-Owned through authorized Cat dealers, Komatsu Remarketing through Komatsu dealers, John Deere CPO through Deere dealers, established multi-brand used equipment dealers with in-house service departments, Ritchie Bros. Auctioneers with IronClad Assurance inspection reports, IronPlanet with their IP Certified inspection program, and traditional auction without inspection. For any used purchase, request the full service history, review available telematics data (Cat Product Link or Komatsu KOMTRAX), verify the hour meter, and have a qualified mechanic perform an independent pre-purchase inspection. Lenders offering the best used equipment rates will want to see solid documentation of machine condition and maintenance history, so collecting these records during purchase also streamlines your financing application.

Ready to Finance Your Excavator?

Whether you're buying a new Cat 320 or a certified pre-owned machine, explore financing options from lenders who specialize in construction equipment.

Explore Excavator Financing → 📞 Call (919) 907-2611

Informational resource only. Not an offer of credit or guarantee of approval. Terms vary by lender and equipment type.