Skid steer or compact track loader
Both machines use the same lift arms, cab and attachment plate. The difference is underneath. A wheeled skid steer is cheaper to buy, faster on pavement and gravel, and cheaper to run because tires cost less to replace than rubber tracks. A compact track loader spreads its weight over a larger footprint, so it works in mud, sand and soft ground and leaves less damage on finished lawns.
For a landscaper installing sod or a contractor working wet clay sites, the extra cost of tracks often pays for itself in lost days avoided. For a farm moving bedding and feed on concrete or a contractor working mostly on pavement, wheels usually make more sense. Lenders finance both on similar terms, since both have deep resale markets, but the higher price of a track loader means a higher payment for the same down payment.
| Factor | Wheeled skid steer | Compact track loader |
|---|---|---|
| Purchase price | Lower | Higher for a comparable size |
| Soft ground and turf | Can rut and get stuck | Better flotation, less turf damage |
| Pavement and concrete | Faster, less wear | Track wear on hard surfaces |
| Running cost | Tires | Rubber tracks, rollers and idlers |
| Typical buyer | Farms, paving, snow, demolition | Landscaping, grading, wet sites |
Landscapers, contractors and farms: different files, different schedules
Landscaping and snow businesses earn unevenly through the year. Lenders who work with them often offer seasonal payment plans, where payments are lower or skipped in slow months and higher in peak months, or a deferred first payment so the machine starts earning before the first bill. Ask for the total of payments under any seasonal plan, because deferrals usually add interest.
General contractors and site-work firms are underwritten on bank deposits, time in business and backlog, and a skid steer is often a small enough deal to approve on an application and statements. Farms may have most of their income in one or two months; some lenders offer annual or semiannual payments timed to harvest or livestock sales. A farm with tax returns showing steady farm income usually gets better terms than one relying on a single season.
Attachments: pick the loader for the tools
The attachment list is the real reason to buy a skid steer. Common ones include a grapple bucket, pallet forks, an auger, a trencher, a box blade or land plane, a brush cutter or forestry mulcher, a snow pusher or blower and a sweeper. Simple tools like forks and buckets run on any machine. Mulchers, cold planers and some trenchers need high-flow hydraulics and a heavier machine, so buying a standard-flow loader and then wanting a mulcher can mean replacing the machine.
Financing attachments with the loader keeps them on one payment and one rate. Many skid steer buyers start with three or four attachments worth several thousand dollars together. If you are financing used attachments from a different seller, ask the lender whether they can be added to the same contract; some will only finance them as a separate small loan or not at all.
Dealer promotional financing or an independent lender
Manufacturers’ captive finance companies regularly advertise low or 0 percent financing on new compact loaders for set terms. These offers are real, but they come with conditions: they usually apply only to new units, only for specific terms, only for buyers in the top credit tiers, and often in place of a cash rebate. If you take the promo, you give up the rebate.
Independent equipment lenders fill the gaps. They finance used machines, private-party and auction purchases, mixed-brand fleets and owners whose credit or time in business falls outside a captive lender’s top tier. Their rates fall within the broader published equipment range of about 7 to 30 percent. The right comparison is the promo against the rebated price financed elsewhere, on total cost.
| Option | Amount financed | Rate | Monthly payment | Total paid |
|---|---|---|---|---|
| Dealer promo, no rebate | $54,960 | 0% | $1,145 | $54,960 |
| $3,200 rebate, outside loan | $51,760 | 8.9% | $1,286 | $61,708 |
In this hypothetical, the promo is about $6,700 cheaper, because the interest on the outside loan, about $9,948, is far larger than the rebate. The math flips when the rebate is large and the outside rate is low, or when you plan to pay off early. Run both before you sign.
Worked example: financing a skid steer or a track loader
Hypothetical, not an offer. A landscaper buys a skid steer for $54,960 with 10 percent, $5,496, down and finances $49,464 through an independent lender at a hypothetical 12.25 percent over 60 months. The payment is about $1,107 and the interest about $16,930, for an all-in cost of about $71,890.
If the same landscaper chooses a compact track loader at $71,380 on the same terms, $64,242 is financed, the payment is about $1,437 and the interest about $21,987. The track loader costs about $330 more each month. A used skid steer at $33,470 with 10 percent down, financed at a hypothetical 18.5 percent over 36 months, runs about $1,097 a month with about $9,354 of interest; the shorter term reflects the machine’s age.
| Product | Amount to discuss | Time to fund | Pricing structure | Eligibility review |
|---|---|---|---|---|
| Equipment financing | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Loan interest or lease payments; compare deposit, fees and ownership terms | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Business line of credit | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Interest or installment fees by provider; check draw and maintenance charges | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
| Business term loan | Provider-specific; size to repayment capacity | Provider-dependent; confirm availability of funds | Quoted interest and fees; compare net proceeds and total repayment | Operating-history requirements vary by provider; Ask which personal and business credit checks apply |
Buying a used skid steer: what to check before financing
Used compact loaders are plentiful, but hours and abuse vary widely. Check the hour meter, the lift arm and bucket pins for slop, the condition of tires or tracks, drive motor and hydraulic leaks, and whether the cab door, glass and safety interlocks work. Ask for service records. Lenders financing a used loader will want the serial number, hours and photos.
On construction jobs, OSHA’s standard for earthmoving equipment, 29 CFR 1926.602(a), covers loaders and similar machines. It requires seat belts on covered equipment, and it bars using equipment with an obstructed rear view in reverse unless a reverse signal alarm is working or an employee signals that it is safe. A used machine with a missing belt or dead alarm needs repair before it goes to a jobsite.
Most skid steers move on a tag or deckover trailer. If the truck and loaded trailer together are rated at 26,001 pounds or more and the trailer alone is rated over 10,000 pounds, the combination falls into Group A under 49 CFR 383.91, so check the ratings before you buy a bigger trailer.
Section 179 on a financed loader
A skid steer and its attachments can qualify for Section 179 expensing in the year they are placed in service, even when financed. For tax years beginning in 2026, the limit is $2,560,000, phased down dollar for dollar once a business places more than $4,090,000 of qualifying property in service. Buying in December rather than January can move the deduction a full year; your tax preparer can say whether that helps.