Auto repair equipment financing lets a shop pay for lifts, scan tools, alignment machines, tire equipment and A/C service machines in monthly payments, with the equipment itself usually securing the loan. Shops can finance through the equipment maker’s vendor program, an equipment lender or bank, or an SBA loan. The main choices are loan or lease, term length and total cost.
This guide is part of our automotive business loans hub. If you need financing for more than equipment, such as buying a shop or covering working capital, see our guide to auto repair shop loans. Figures were checked on September 21, 2026.
What equipment you can finance
In most shops, the owner buys the big equipment. The Bureau of Labor Statistics notes that technicians typically own their hand tools, while computerized diagnostic tools and power equipment, including jacks and hoists, “usually are owned by their employers” (BLS). Navitas Credit Corp., an equipment lender with an automotive program, lists the kinds of equipment it finances, including (Navitas automotive equipment financing):
- Vehicle lifts
- Diagnostic tools and scanners
- EV service tools
- Tire changers
- Paint booths and frame straightening equipment
- HVAC systems and compressed air
Navitas also advertises “100% project financing” that bundles “equipment, installation, delivery, and training” into one monthly payment. Ask any lender whether installation, freight and training can be included, because those costs can be a large share of a lift or paint booth project.
Where shops get equipment financing
Vendor and manufacturer programs
Many equipment makers and distributors partner with a finance company so you can apply when you buy. BendPak, for example, offers financing through Navitas and advertises “0% financing on qualifying BendPak equipment purchases,” adding that “eligibility, minimum purchase requirements, available terms and qualifying products may vary” (BendPak financing options). A Navitas financing page set up for an automotive equipment distributor lists “12 to 60 month terms” and says applicants can “get pre-approved in less than two hours” (Navitas program page).
Tool company credit
Tool companies also finance their own products. Snap-on’s annual report describes its financial services business as offering “installment sales and lease contracts” to customers “who require financing for the purchase or lease of tools, diagnostics, and equipment products on an extended-term payment plan” (Snap-on 2024 Form 10-K). This can be convenient when you buy through a dealer who visits the shop, but compare the total cost with other offers.
Banks and SBA loans
For larger projects, or when you are equipping a new location, an SBA loan can offer longer terms. The SBA lists “purchasing and installation of machinery and equipment” as an eligible 7(a) use, with loans up to $5 million (SBA 7(a)) and a maximum maturity of 10 years for equipment (SBA terms). SBA 504 loans can fund “long-term machinery and equipment with a useful remaining life of a minimum of 10 years” (SBA 504), which usually fits a building project better than a single scan tool.
Loan vs. lease compared
| Option | Who owns it | Suits | Trade-offs |
|---|---|---|---|
| Equipment loan | You, from day one; lender holds a lien | Lifts, alignment racks, compressors and other long-life equipment | You carry the risk of the equipment becoming outdated |
| Lease with a nominal buyout | You, at the end for a nominal price | Owners who want to keep the equipment but prefer lease paperwork | Total cost is close to a loan’s; read the end-of-term terms |
| Fair market value (FMV) lease | The lessor, unless you buy at market value | Scan tools and calibration systems that date quickly | Lower payments, but you do not build ownership |
| Vendor promotional financing | Depends on the contract | Buying a specific brand you already want | Promos can have minimums and limited terms |
| SBA 7(a) loan | You | Large packages or a new location | More paperwork; up to 10 years for equipment |
For more on how the two structures differ, including taxes, see equipment financing vs. leasing. Used lifts and machines can also be financed. See used equipment financing and leasing.
What it costs
Most automotive equipment lenders do not publish rate ranges, so ask for the rate, every fee and the full payment schedule in writing. Three measures matter:
- Interest rate: the yearly charge on the balance of a loan, not counting fees.
- APR (annual percentage rate): the interest rate plus most fees, shown as a yearly cost. Use it to compare loans.
- Total lease cost: leases often quote only a monthly payment. Multiply it by the number of months and add any buyout and fees to find the true cost.
On 0% promotions, ask whether the same equipment is cheaper if you pay cash or finance elsewhere. A promo can be built into the price. Our equipment loan calculator helps you compare payments at different terms.
Tax treatment
Financed equipment can still qualify for fast write-offs. For tax years beginning in 2026, the IRS sets the Section 179 expensing limit at $2,560,000, reduced once the cost of qualifying property placed in service exceeds $4,090,000 (IRS Revenue Procedure 2025-32). Separately, the IRS says the One Big Beautiful Bill Act (OBBB) “provides a permanent 100-percent additional first year depreciation deduction for qualified property acquired … after Jan. 19, 2025” (IRS). Leases are treated differently depending on how they are structured. Confirm your situation with a tax professional before you buy.
Check these before you buy
- Lift certification. The Automotive Lift Institute (ALI) says “only lifts bearing ALI’s gold certification label are certified” to its safety standard, and that “it is the responsibility of the lift purchaser to specify ALI Certified as a requirement” (ALI certification FAQ).
- Lift inspections. The ANSI/ALI ALOIM standard “requires that a lift owner or employer utilize a qualified lift inspector to inspect all lifts at least annually” (ALI). Budget for it as an ongoing cost.
- A/C equipment. EPA requires refrigerant handling equipment used on vehicle A/C systems to be certified by EPA or an approved testing organization. New shops, or shops servicing these systems for the first time, “must certify to their EPA Regional Office that they have acquired and are properly using approved refrigerant handling equipment,” and records “must be maintained for 3 years” (EPA).
- Installation needs. Check floor thickness, ceiling height, power and air supply before you sign, so installation costs don’t surprise you.
What lenders look for
Equipment lenders look at time in business, credit, bank statements and the equipment itself. Navitas says it makes “prompt credit decisions” based on “your business credit profile,” and advertises “no hard credit pulls” on its automotive page. For larger amounts, expect to provide financial statements and tax returns. Newer shops and owners with weaker credit have options too. See equipment financing for startups and equipment financing with bad credit.
Pitfalls to avoid
- Financing past the equipment’s useful life. A scan tool you will replace in a few years should not be on a long-term note.
- Overlooking end-of-lease terms. Know the buyout price, return conditions and any automatic renewal before you sign.
- Buying capacity you can’t fill. Estimate how many jobs a month a new machine needs to cover its payment.
- Stacking liens. Some equipment lenders file broad UCC liens. Our guide to UCC filings explains how that can affect future borrowing.
Auto repair equipment financing FAQs
Can I finance installation and training with the equipment?
Often, yes. Navitas, for example, advertises project financing that bundles equipment, installation, delivery and training into one payment. Ask each lender what soft costs it will include.
How long are auto repair equipment financing terms?
They vary by lender and equipment. A Navitas vendor financing page lists 12 to 60 months. SBA 7(a) loans for equipment can run up to 10 years.
Is 0% equipment financing free?
Not always. BendPak notes that eligibility, minimums, terms and qualifying products vary for its 0% offers. Compare the financed price with the cash price and with other offers.
Can I write off financed shop equipment?
Financed equipment you own can qualify for Section 179 expensing or bonus depreciation, subject to IRS limits. Talk to a tax professional about your situation, especially for leases.
Next step
Get written quotes for the equipment, including installation, and gather recent bank statements before you compare offers. Our equipment financing guide covers the process in more detail and explains how SMB Compass helps you compare offers from the lenders we work with.
Sources
- Navitas Credit Corp.: Automotive equipment financing
- Navitas Credit Corp.: Automotive equipment program page
- BendPak: Financing options
- Snap-on: 2024 Form 10-K
- BLS: Automotive Service Technicians and Mechanics
- SBA: 7(a) loans
- SBA: 7(a) terms, conditions and eligibility
- SBA: 504 loans
- IRS: Revenue Procedure 2025-32
- IRS: Guidance on the additional first year depreciation deduction
- Automotive Lift Institute: Lift certification FAQ
- Automotive Lift Institute: Annual lift inspections
- EPA: Regulatory requirements for MVAC system servicing
About this page. Written by Ezra Cabrera, Content Team Lead at SMB Compass. Figures were checked against the primary sources listed above on September 21, 2026; lenders change their terms, so confirm current terms before you apply, and let us know if you spot a figure that has changed. SMB Compass is a business financing broker: we don’t lend our own money, and we are paid by the lenders we place loans with. This page is general information, not financial, legal or tax advice.