Financing Used Machinery in Malaysia: 10-Year Age Limit Guide (2026)
Can you finance a 10-year-old excavator? Learn about used machinery financing age limits, valuation, and 0% deposit options for older equipment.
Executive Summary: Does Age Matter?
The Rule: Most Malaysian banks impose a strictly 10-Year Age Limit on machinery financing.
- Example: In 2026, banks will only finance machines manufactured in 2016 or later.
The Exception: Ing Heng Credit finances used machinery up to 20 Years Old (manufactured in 2006).
Why This Matters: A 2012 Kobelco SK200-8 costs RM 120,000. A 2020 model costs RM 280,000. Financing the older machine saves you RM 160,000 in debt, but only if you can find a lender.
Verdict: Donβt let bank policies force you to overspend. Finance the older, reliable machine with us.
1. Maximum Financing Age Limit Table (2026)
| Equipment Type | Commercial Bank Limit | Ing Heng Credit Limit |
|---|---|---|
| Excavators | 7 - 10 Years | 20 Years |
| Backhoes | 7 - 10 Years | 15 Years |
| Lorries | 10 - 12 Years | 15 - 18 Years |
| Cranes | 10 - 15 Years | 25 Years |
| Forklifts | 5 - 7 Years | 10 - 12 Years |
| CNC Machines | 5 - 7 Years | 10 - 15 Years |
2. Why Banks Reject Older Machines
Itβs about risk.
- Valuation Difficulty: Hard to price a 15-year-old machine accurately.
- Breakdown Risk: If it breaks, you stop earning, you stop paying.
- Disposal Risk: Harder to sell if repossessed.
3. How We Value Used Machinery
We look at the machineβs condition, not just the year.
- Engine: Is it smoking?
- Hydraulics: Any leaks?
- Undercarriage: Worn out?
- Hour Meter: < 10,000 hours vs > 20,000 hours.
Example: A 2008 Hitachi ZX200-3 with a rebuilt engine and new undercarriage is worth more than a neglected 2015 model. We finance the value, not the year.
4. Loan Margin for Old Machines
Expect lower margins for older units.
- 1 - 5 Years Old: 90% Margin.
- 6 - 10 Years Old: 80% Margin.
- 11 - 15 Years Old: 70% Margin.
- 16 - 20 Years Old: 50% - 60% Margin.
Strategy: Use the lower margin to negotiate a lower price with the seller (βCash Buyerβ discount).
5. Interest Rates for Old vs New
- New Machine: 3.5% - 4.5% p.a.
- Used Machine: 5.0% - 7.5% p.a.
Is it worth paying 7% interest? Yes, because the principal amount is much lower.
- New: RM 300k x 4% = RM 12k interest/year.
- Old: RM 100k x 7% = RM 7k interest/year.
- Result: You pay LESS total interest on the old machine.
Conclusion
Donβt buy a new machine just to get a low interest rate. Buy the machine that makes sense for your contract duration and budget. If that machine is 15 years old, we will back you.
Found a bargain used machine? Send us the photos and year. Weβll give you a valuation and loan offer.
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