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Loans for second-hand vehicles and equipment

In recent years, demand for second-hand vehicles and equipment has reached record levels, as supply chain issues have made new products difficult to obtain.

As a result, more people have started looking at different options for financing these business essentials.

While traditional banks might not finance second hard vehicles and equipment, there are a range of lenders that will. However, there are certain factors that you should take into consideration before thinking about finance.


Interest rates

Lenders often view second-hard equipment or vehicles as riskier than brand new alternatives. If a lender had to resell equipment in the event of a default, it would likely be easier to sell newer equipment. That could lead to a lender offering higher interest rates for purchasing second-hand equipment.


Age of the assets

Generally speaking, lenders won’t finance very old equipment or vehicles. Many would need the equipment to be less than 10 years old, although some specialist lenders are able to go beyond those levels. Talking to one of our finance experts before starting your search is always advisable.


Dealer or private

Lenders might feel that equipment purchased from a dealer comes with less risk than through a one-off private sale. A dealership generally has their reputation on the line and offers a warranty and other protections.


Condition of asset

When looking at second-hand equipment, the lender will normally want to know that it’s in good condition. A lender might want to conduct suitability inspections, reports and valuations prior to approval.



Lenders will also want to ensure you’re paying fair market value for the equipment that you’re purchasing. If you’re paying too much, that puts more risk on the lender in the event you default on your repayments.



If you would like to find out what you obtaining a vehicle or equipment loan,  or have any finance and/or property questions, the best place to start is to contact us for advice.   We are only an email or phone call away, on 02 8004 2222 or  book an appointment.

Although we are located in Crows Nest, we service clients from St Leonards, Artarmon, Wollstonecraft, Cammeray, Northbridge, Naremburn, Neutral Bay, Greenwich, North Sydney, Waverton to Willoughby and all areas of Greater Sydney.

PS  This article is prepared based on general information. It does not take into account individual financial or property objectives or needs and is not financial product or investment advice.