yellow and black heavy equipment on snow covered ground during daytime

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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 problems has made new products difficult to obtain.

As a result, more people have started looking at their 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 a finance broker 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 see that it’s in good condition. A lender might look 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.