A local contractor has decided to retire.
You’ve worked alongside them for years and know they’ve always looked after their machinery. They mention they’re selling an excavator, skid steer and trailer privately before advertising them online.
The equipment is exactly what your business needs.
The price is fair.
Now you’re wondering whether you can finance machinery bought directly from another business owner instead of a dealership.
It’s a question the team at Thrive Broking is asked regularly.
The good news is that financing equipment purchased through a private sale is often possible. The process is simply different from buying through a dealer, and understanding what to expect before you commit can make the purchase much smoother.
Why Businesses Buy Equipment Through Private Sales
Private sales happen every day across Australia.
Businesses upgrade equipment.
Contractors retire.
Farmers replace machinery.
Companies reduce the size of their fleet.
Rather than trading equipment to a dealer, many owners choose to sell directly to another business.
For buyers, this can provide access to quality equipment at a competitive price while allowing you to deal directly with the owner who has operated and maintained the machine.
What Equipment Is Commonly Bought Privately?
Private sales are common for:
Excavators
Skid steers
Dozers
Wheel loaders
Forklifts
Tractors
Spray rigs
Prime movers
Trailers
CNC machinery
Manufacturing equipment
Workshop machinery
Commercial vehicles
Whether you’re buying one machine or several, the same principles generally apply.
Can You Finance Equipment Bought Privately?
In many situations, yes.
Lenders will usually assess the equipment, the transaction and your individual circumstances.
Information commonly requested may include:
The make and model.
Year of manufacture.
Serial number.
Purchase price.
Equipment condition.
Seller information.
Buyer information.
Intended business use.
Providing accurate information from the beginning often helps avoid unnecessary delays.
Confirm The Seller Owns The Equipment
One of the most important parts of a private purchase is confirming ownership.
Ask the seller questions such as:
How long have you owned the equipment?
Why are you selling?
Has it been regularly serviced?
Is finance still owing?
Can you provide service records?
Has the equipment had any major repairs?
A genuine seller will usually be happy to answer reasonable questions.
Inspect Before You Buy
Even if the equipment looks excellent in photos, an inspection is worthwhile.
Check:
General condition.
Signs of excessive wear.
Hydraulic hoses.
Tyres or tracks.
Engine operation.
Safety features.
Attachments.
Serial number plates.
For higher value purchases, many businesses also arrange an independent inspection.
Complete Your Due Diligence
Before purchasing privately, it’s sensible to complete appropriate checks.
Depending on the equipment, these may include confirming ownership documentation and completing a Personal Property Securities Register search.
Taking the time to complete these checks before settlement can provide greater confidence in your purchase.
Don’t Forget The Total Cost
The purchase price is only part of the investment.
Also budget for:
Transport.
Insurance.
Servicing.
Repairs.
Replacement parts.
Fuel.
Attachments.
Registration where applicable.
Looking at the total cost of ownership helps ensure the equipment supports your business over the long term.
Common Mistakes
Some buyers:
Pay a deposit before understanding their finance options.
Skip an inspection.
Focus only on purchase price.
Forget transport costs.
Buy equipment that doesn’t suit future work.
Rush into a purchase because they don’t want to miss out.
Taking a little extra time before committing often leads to better commercial decisions.
Final Thoughts
Private sales can provide excellent opportunities to purchase quality business equipment.
The key is understanding the process before committing to the purchase.
By confirming ownership, inspecting the equipment, completing appropriate checks and discussing your finance options early, you’ll be in a much stronger position to make an informed decision.
If you’re considering purchasing equipment through a private sale, speaking with an experienced broker before paying a deposit can help you understand your options and move forward with confidence.