Quick answer
Used equipment finance is a loan or lease for second-hand machinery, plant, vehicles or tools, secured against the item being bought. Lenders consider age, condition, hours and resale value as well as your income. Ownright Custom Finance arranges used equipment finance Australia-wide, including auction and private purchases and older assets.
Key points
- Second-hand gear from dealers, auctions and private sellers can all be considered
- Age and condition shape term and deposit, not just the price
- Serial numbers and ownership checks matter more on used items
- Older or unusual equipment may need a specialist lender
- Suits
- Tradies, contractors, manufacturers, farmers and workshops
- Security
- The equipment, and sometimes extra security for older items
- Structures
- Chattel mortgage, hire purchase, lease or secured loan
- Australia-wide
- Yes
What is used equipment finance?
Used equipment finance covers the purchase of second-hand machinery, plant, tools, vehicles and workshop gear. A lender pays the seller, you repay over an agreed term and the equipment is held as security. It is the same idea as new asset finance, but the lender has more to think about: how old the item is, what shape it is in and how easily it could be sold if the loan went wrong.
Plenty of smart buyers choose second-hand. A three-year-old excavator, a well-kept press or a workshop hoist can do exactly the same job as a new one at a fraction of the outlay. The finance just needs to be built with the age of the asset in mind.
Who uses used equipment finance?
- Tradies and contractors building a fleet without paying new prices
- Manufacturers adding capacity with refurbished machines
- Farmers buying second-hand plant, as covered in farm equipment finance
- Start-ups that need proven gear but have limited capital
- Workshops, panel beaters and mechanics buying hoists, tools and diagnostic gear
- Businesses grabbing a bargain from a closing-down sale or auction
What do lenders look at with used gear?
Age and hours. The age at the end of the loan is often just as important as the age today. A machine that will be 15 years old when the loan finishes may be handled very differently to one that will be 8.
Condition and records. Service history, inspection reports and photos build confidence. Lenders are more relaxed when a deal is well documented.
The seller. Dealers and reputable auction houses provide a clean paper trail. Private sellers need more checking.
Ownership and encumbrances. The Personal Property Securities Register (PPSR) shows whether finance is registered against many types of equipment. Lenders search it, and buyers should as well.
The borrower. Credit history, income, how long you have been in business, and what else you owe.
New versus used: what changes?
| Factor | New equipment | Used equipment |
|---|---|---|
| Term | Usually longer | Often shorter, tied to age |
| Deposit | May be small | Often larger as age rises |
| Lender choice | Broad | Narrower for older or niche items |
| Checks | Supplier invoice | Condition, ownership and encumbrance checks |
| Warranty | Usually included | Limited or none |
None of this means used equipment is a poor choice. It simply means more of the work happens before settlement.
Dealer, auction or private seller?
Dealers are the simplest: an invoice, a clear description and a payment route the lender knows. Auctions are quick, and payment is often due within days, so lining up finance early is smart. Private sales can offer the best prices but need the most diligence. Our page on private sale asset finance explains the checks lenders carry out.
Which structure suits second-hand gear?
A chattel mortgage gives you ownership straight away, which many buyers like for used items. Hire purchase and leases can also work. Which is best depends on your tax position and plans for the equipment. Read about chattel mortgage loans or our guide to how chattel mortgages work. From 1 July 2026 the ATO’s instant asset write-off covers eligible assets costing less than $20,000 for small businesses with turnover under $10 million, so check with your accountant how it applies to the used item you have in mind.
How Ownright arranges used equipment finance
Trevor Scott’s long experience in finance has taught the team that older assets rarely fail on logic. They fail because the right lender never saw them. We ask about the item first, then about your business, and then we look for lenders whose appetite matches. For excavators and earthmoving gear that might be one lender; for a vintage printing press it will be another.
If a bank said no because the machine was too old, the seller was private or the paperwork was messy, we look at whether another lender sees it differently. We work Australia-wide, including with regional buyers who are buying equipment from sellers hundreds of kilometres away.
An illustration
Illustrative scenario only. A small earthmoving business finds a used skid-steer at an interstate auction. The buyer has a good trading record but one past late payment. A broker could line up a lender comfortable with older plant, check the PPSR before bidding, and time the finance approval so payment is made inside the auction deadline.
Mistakes to avoid
- Bidding at auction before the finance is lined up
- Skipping the PPSR search on a private sale
- Overpaying because the item “looks” good without a condition report
- Accepting a term that outlasts the machine’s useful life
- Forgetting transport, repairs or refurbishment costs
Documents to have ready
- Listing, quote, invoice or auction catalogue entry
- Serial number, make, model, year and hours
- Service history or inspection report
- Recent tax returns, BAS or payslips
- Photo ID and an asset and liability list
If your paperwork is incomplete, what documents you need for a loan and how to get loan ready explain the basics. If past credit marks are a worry, our bad credit asset finance page covers it. For general gear that is not covered here, see equipment finance.
How do lenders value older equipment?
Valuing second-hand equipment is part science, part judgement. A lender may check recent sale prices for similar items, ask for a condition report or rely on a guide used in that industry. Where the price you have agreed looks well above the market, the lender may lend against its own view of value rather than the contract price, leaving you to find the difference. Being realistic about the price, and having evidence for it, avoids a shortfall at settlement.
Can I bundle repairs or refurbishment into the finance?
Sometimes. A lender may fund reasonable refurbishment costs if they are quoted and documented, particularly when they improve the resale value of the asset. Others will only fund the purchase price. If you know a machine needs new tyres, a service or a rebuild, raise it at the start so the finance can be structured around the full cost. It is much easier to plan than to ask for extra funding after the first loan has already settled.
Found the right machine at the right price?
Sounds like you’re looking for used equipment finance. We’re the lending experts at funding second-hand gear that others overlook, so see if you qualify and we will take it from there.
How it works, step by step
- 1
Step 1
Send the listing or invoice, plus the age, hours and condition details.
- 2
Step 2
We check which lenders accept that kind and age of equipment.
- 3
Step 3
Ownership and finance searches are lined up so there are no surprises.
- 4
Step 4
You sign, the seller is paid and the equipment is released.
Frequently asked questions
How old can used equipment be and still be financed?
It varies by lender and equipment type. Many lenders set a limit on the equipment's age at the end of the loan, which shortens the term on older items. Some specialist lenders are comfortable with older machinery if it is well maintained. Tell us the year, make and hours and we will find who is open to it.
Can I finance used equipment from an auction?
Yes, but plan ahead. Auction payment deadlines are tight, so it helps to have indicative lender interest before bidding. Lenders will want the auction invoice and proof of ownership. We discuss which lenders can work with auction timing so you are not scrambling after the hammer.
Will a lender want an inspection or valuation?
Sometimes. For higher-value or older items a lender may ask for an independent inspection, a condition report or a valuation. This protects both of you. Cheaper or common items may need only a clear invoice and serial number. We tell you what to expect up front.
What if the equipment is a private sale?
Private sales are possible but need extra checks, mainly that the seller owns the item and that no finance is registered against it. A bill of sale and identification are typical. Our private sale asset finance page explains the process in detail.
Is used equipment finance more expensive than new?
Pricing is set on your circumstances and the asset, and used items can attract different terms than new because the resale picture is less certain. A deposit, shorter term or extra security may be requested. We explain the trade-offs rather than quoting generic numbers.
Can I finance used gear if my credit isn't great?
Sometimes. A few asset lenders weigh the equipment and deposit more heavily than a past blemish. Terms may differ. We ask about the credit issue early, so we can suggest lenders who look at your whole file instead of automatically declining.