For many Australian small and medium-sized businesses, buying brand-new equipment isn’t always necessary—or financially feasible. In many cases, second-hand machinery or pre-owned commercial vehicles can provide the same benefits at a much lower cost.
But the big question is: Can you finance used equipment?
The answer is yes—and it could be a smart move for your business.
In this article, we’ll explain how financing used machinery works, share tips for purchasing second-hand assets, and help you decide whether it’s the right option for your business.
Can You Finance Used Equipment?
Yes, many lenders in Australia offer finance options for second-hand equipment and vehicles. Whether you’re looking at excavators, forklifts, trucks, or commercial vans, used asset finance can provide a cost-effective way to grow your business without compromising cash flow.
At Capital Plus Finance, we work with over 40 lenders—including those who specialise in funding second-hand machinery and vehicles.
Why Finance Second-Hand Equipment?
Financing second-hand assets can be a smart business decision for several reasons:
Lower upfront cost:
Used equipment typically costs significantly less than new, reducing the loan size and repayment amounts.
Preserve working capital:
Instead of paying in full upfront, finance lets you spread the cost over time and keep funds free for operations or growth.
Faster ROI:
Because you’ve invested less, your return on investment may be realised sooner.
Proven reliability:
Many used commercial machines and vehicles are still in excellent condition, especially if they’ve been well maintained.
Finance Options for Used Equipment
You can finance second-hand equipment using the same methods available for new assets:
1. Chattel Mortgage
A chattel mortgage allows you to purchase the asset outright with a loan secured against it. You own the asset from the start, and the lender holds a mortgage until the loan is repaid.
Ideal if you:
- Want to claim GST (if applicable)
- Plan to own and use the equipment long-term
- Prefer flexible loan terms
2. Hire Purchase
With hire purchase, you make regular repayments and take ownership after the final payment.
Ideal if you:
- Want predictable repayments
- Prefer to delay ownership until the loan is paid off
3. Equipment Lease
Leasing second-hand equipment is possible, though not all lenders support it.
Ideal if you:
- Don’t need to own the asset
- Prefer a shorter-term commitment
Note: Some lenders have restrictions on the age or condition of the asset, so it’s important to work with an experienced equipment finance broker who can guide you through the approval process.
What Do Lenders Look for?
When financing second-hand machinery, lenders will typically assess:
- Age of the asset – Most lenders prefer assets under 10 years old at the end of the loan term.
- Condition – The asset should be in good working order with documented service history.
- Supplier or vendor – Purchasing from a licensed dealer can improve your chances of approval.
- Asset type – Common and high-demand equipment is easier to finance than niche or highly specialised machinery.
Tips for Buying Second-Hand Commercial Equipment
Before applying for finance, take the following steps to reduce risk and improve your approval chances:
✅ Do Your Research
Understand fair market value, typical lifespan, and common faults for the type of asset you’re considering.
✅ Request a Full Inspection
Get the asset inspected by a qualified technician or mechanic. Look for signs of wear, damage, or poor maintenance.
✅ Ask for Maintenance Records
A full service history can help confirm the condition and reliability of the equipment.
✅ Buy from a Reputable Seller
Lenders prefer assets bought from licensed dealers or recognised resellers over private sellers.
✅ Check the PPSR
Make sure there are no existing finance claims on the asset by checking the Personal Property Securities Register (PPSR).
Why Work with an Equipment Finance Broker?
Navigating second-hand asset finance can be tricky—especially when lenders have different criteria and policies for used equipment.
Working with an experienced equipment finance broker, like Capital Plus Finance, gives you access to:
- Lenders that specialise in second-hand asset finance
- Competitive rates and tailored repayment options
- Faster approvals and expert support throughout the process
Ready to Finance Used Equipment?
Whether you’re looking to finance a second-hand truck, excavator, or commercial van, used asset finance can be a smart, cash flow-friendly way to invest in your business.
At Capital Plus Finance, we help Australian businesses secure the best funding options from over 40 lenders. We understand the nuances of used equipment finance and are here to make the process smooth and stress-free.
👉 Contact us today to get started or learn more about your options.
