Not every business can afford new equipment. And during a period of rising diesel costs, even fewer can. This is not a failure. It is a practical reality that thousands of Malaysian business owners navigate every day.

Used and older equipment keeps much of Malaysia’s construction, logistics, and manufacturing sectors running. A 12-year-old excavator still digs. A 15-year-old lorry still delivers. A 20-year-old forklift still lifts. The question is not whether old equipment has value. It clearly does. The question is how to pay for it when cash is stretched thin by RM5.52-per-litre diesel.

Why Used Equipment Makes Sense Right Now

The Price Difference is Significant

A new 20-ton excavator might cost RM400,000 to RM600,000. A well-maintained used model from 2015 or 2016 might cost RM150,000 to RM250,000. That is a difference of RM200,000 to RM350,000.

To put that in perspective, RM200,000 covers approximately five months of diesel for a mid-sized fleet at current unsubsidized prices. When every ringgit counts, that saving matters.

A new 5-ton lorry might run RM180,000 to RM250,000. A used one in good condition could be RM70,000 to RM120,000. The savings fund months of fuel and wages.

You Get Capability Without the Premium

A used piece of equipment does the same work as a new one. It digs the same hole, carries the same load, lifts the same pallet. You are not buying a brand name or the latest paint colour. You are buying capability, the ability to earn revenue and complete jobs.

For many SMEs, especially during cost pressures from diesel increases, capability at a lower price point is exactly what they need.

Depreciation Works in Your Favour

New equipment depreciates fastest in its first few years. When you buy used, someone else has already absorbed that initial depreciation hit. Your equipment holds its value more proportionally over the time you own it.

If you finance a used lorry for RM90,000 and use it for five years, its resale value at the end might be RM35,000 to RM45,000. Your net cost of ownership, excluding operating expenses, is RM45,000 to RM55,000 over five years. That is RM750 to RM917 per month for a revenue-generating asset.

The Age Barrier in Financing

Here is where many business owners hit a wall. They find a perfectly good used excavator or lorry at a great price, but their bank will not finance it because it is too old.

Many banks and mainstream financial institutions have strict age limits on equipment financing. Some will not touch anything over 5 years old. Others cap it at 7 or 10 years. This leaves a massive gap in the market, because plenty of excellent equipment is older than that.

Why Mainstream Banks Have Age Limits

Banks assess risk using standardized models. Older equipment is harder to value from a desk. It may not have a clear market price in their system. Their risk models flag older assets as higher risk, regardless of condition.

This does not mean old equipment is bad. It means the bank’s system is not built to evaluate it properly.

Specialized Financiers Fill the Gap

Licensed financiers who specialize in equipment and commercial vehicles approach the evaluation differently. They understand that a well-maintained Caterpillar excavator from 2008 can still be a productive, valuable machine. They know that a Hino lorry from 2010 with proper servicing can run reliably for years to come.

These financiers evaluate the actual equipment, its condition, maintenance history, and productive potential, rather than just plugging an age into a formula.

At Ing Heng Credit, with over 40 years of experience since 1985 and more than 4,000 customers served, we have financed equipment across a wide range of ages and types. Equipment age alone does not disqualify a financing application. What matters is whether the equipment works, whether it will continue to work, and whether the business can support the repayments.

How Used Equipment Financing Works

The process is straightforward, especially with a financier experienced in commercial equipment.

Step 1: Find Your Equipment

Identify the used equipment you want to purchase. This could be from a dealer, a private seller, an auction, or another business selling assets.

Step 2: Gather Basic Information

Prepare details about the equipment: make, model, year of manufacture, serial number, current condition, and the asking price. Also have your business documents ready, including SSM registration, identification documents, and recent bank statements.

Step 3: Submit an Application

Contact the financier and submit your application with the equipment details and your business documents. Experienced equipment financiers can often give you a preliminary answer quickly because they understand the equipment market.

Step 4: Evaluation and Approval

The financier evaluates the equipment and your business. For used equipment, this may include a physical inspection. A financier with industry expertise can assess equipment condition more accurately than a generalist.

Step 5: Financing and Collection

Once approved, the financing is arranged, and you take possession of the equipment. With 0% deposit options, you may not need to pay anything upfront.

Real Scenarios from the Field

The Contractor Who Needed a Backup Excavator

A small contractor in Johor runs a single excavator. When it broke down for a week, he lost a RM15,000 sub-contract because he could not complete the work on time. He found a used Komatsu PC200 from 2012 for RM130,000. His bank refused to finance it due to age. A specialized financier approved the financing, and he now has a reliable backup machine that has already paid for itself by preventing lost contracts.

The Haulage Operator Expanding on a Budget

A haulage operator in Selangor needed to add two lorries to meet growing demand. New lorries would have cost RM400,000 for the pair. He found two used Isuzu lorries from 2014 in good condition for RM180,000 total. With 0% deposit financing, he added two revenue-generating vehicles to his fleet without touching his cash reserves, cash he needs for diesel at RM5.52 per litre.

The Warehouse Upgrading Forklifts

A warehouse operator needed to replace two worn-out forklifts. New electric forklifts were RM120,000 each. She found two used Toyota forklifts from 2016 for RM45,000 each. Financed with no deposit, the monthly payments were easily covered by the efficiency gains and the fact that the old forklifts were constantly breaking down.

What to Check Before Financing Used Equipment

Buying and financing used equipment is smart, but it requires due diligence.

Inspect Thoroughly

If you are not a mechanic, bring someone who is. Check the engine, hydraulics, transmission, frame, and all critical systems. Look for signs of major repairs, accident damage, or jury-rigged fixes.

Check the Hours or Mileage

For excavators and heavy machinery, engine hours tell you more than age. A 10-year-old excavator with 5,000 hours has a lot of life left. The same machine with 15,000 hours may need an overhaul soon.

For lorries, check the odometer, service records, and JPJ records.

Ask for Service History

Well-maintained equipment has records. Oil changes, filter replacements, major services, these should be documented. If there are no records, be more cautious and factor in the cost of a thorough inspection and potential initial maintenance.

Factor in Initial Maintenance Costs

Budget for a service and any immediate repairs after purchase. Replacing filters, fluids, belts, and worn components when you first get the machine sets it up for reliable operation and avoids surprises during the first months.

The Bottom Line

During a period of rising diesel costs, used equipment offers Malaysian businesses a way to maintain or expand capability without the massive cash outlay of new purchases. Financing removes the remaining barrier by spreading even the lower used-equipment cost into manageable monthly payments.

And if you have been told your equipment is too old to finance, that may simply mean you have been talking to the wrong financier. Specialized, experienced equipment financiers evaluate the actual machine and the actual business, not just numbers on a spreadsheet.

Age is a number. Condition and capability are what matter.

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Financing Old and Used Equipment During Diesel Price Increases in Malaysia 2026