The 6 Things You Need to Know About Purchasing / Financing Used Assets

Purchasing and financing used equipment or vehicles can be a smart way to grow your business without blowing the budget - but it also comes with a few extra steps that new asset buyers might not face.

At A Class Business Finance, we help businesses navigate the process of acquiring second-hand assets with confidence and clarity. Whether it’s a truck, excavator, forklift, or office equipment, here are six key things to keep in mind:

1. Check the Age and Condition of the Asset

Age matters - especially when it comes to financing. Most lenders place restrictions on the maximum age of an asset at the time of purchase and at the end of the loan term.

Tip: Get a professional inspection to assess the asset’s condition, service history, and expected lifespan.

2. Conduct a PPSR Check

Before you buy, always run a Personal Property Securities Register (PPSR) check to make sure there are no existing finance or ownership claims on the asset. If a previous lender still holds an interest, you could end up with an encumbered asset - even if you’ve paid for it.

We include PPSR checks as part of every finance deal we arrange.

3. Understand Your Finance Options

Many lenders offer tailored loan structures for used assets - but not all will finance older or high-hour equipment. Your finance options may include:

• Chattel Mortgage (most common for business use)

• Hire Purchase

• Lease arrangements

• Low doc or no doc options (for eligible businesses)

Speak to a finance broker to explore which lender is best suited for the type, age, and value of the asset.

4. Make Sure the Asset Still Holds Value

Lenders will typically want assurance that the used asset still holds sufficient resale or working value. If it's too old, obsolete, or overworked, it may not be eligible for finance - or may attract higher interest rates or lower loan-to-value ratios (LVR).

Tip: Stick to well-known brands with strong resale markets.

5. Get the Right Documentation

To get approved for finance on a used asset, you’ll likely need:

• A detailed invoice or sales contract from the vendor

• The serial number or VIN for the asset

• Proof of ownership and proof of purchase

• Among other items

If you're buying privately (not through a dealer), the paperwork is even more important to ensure you are protected.

6. Work With a Finance Broker

Used asset finance can be more complex than new - different lenders have different policies on age limits, LVR, and documentation. An experienced broker (like the team at A Class!) can help:

• Find the right lender for the asset

• Structure the deal to suit your cash flow

• Avoid common pitfalls (like encumbrances or poor resale value)

• Speed up approvals and settlement

  
  

Final Thoughts

Buying and financing used assets can be a smart, cost-effective move for your business - if done properly. With the right checks, the right lender, and the right advice, you can secure high-quality equipment at a lower cost and put it straight to work.

If you're considering financing a used asset, chat to A Class Business Finance first. We'll help you assess your options and guide you through the process, every step of the way.

📞 Call 07 3488 1500 🌐 Visit www.aclassteam.com.au 📩 Or request a free quote online today