With the rising costs of doing business. many operators are looking for cost-effective ways to manage expenses in 2024. Purchasing second-hand machinery at auctions can be a smart way to save money. Arranging financing for auction buys can be more complex than buying through a dealer.
EXEQ Finance offers comprehensive loan options to help you navigate these complexities.
Considerations for Financing Used Machinery
Buying second-hand equipment can be more economical than purchasing new units. However, financing these purchases comes with different considerations:
- Interest Rates and Conditions: Lenders assess the age and condition of second-hand machinery, which may affect interest rates and loan terms. We can provide quotes for both new and used options to help you make an informed decision.
- Balloon or Residual Value: These values have parameters established by the lender, taking into account the loan term, the equipment’s age, and its effective life/depreciation rate (speak with your Accountant on this).
- Auction vs. Dealer Purchases: Auction purchases require prompt settlement, so it’s crucial to have financing pre-approved or quickly available. Buying from a dealer or private seller usually allows more time for inspections and financing arrangements.
With auctions, timing is everything. If you miss out on a unit, it’s gone. Pre-approved credit through our broker services can streamline the process and help you secure the best deals.
Used Machinery Loan Products
We offer a range of options for financing both new and second-hand equipment, whether purchased from dealers or at auctions.
Lenders’ terms, interest rates, and approved amounts for second-hand equipment may differ from those for new machinery, depending on their assessment of the equipment’s value and condition.
Securing the Best Interest Rates
Operators focusing on cost-saving by buying used rather than new can benefit from our ability to negotiate the best loan terms with the lenders on your behalf.
At EXEQ Finance, we leverage our network of lenders, including specialised heavy equipment lenders, to secure competitive rates that align with your cash flow expectations.
Planning Your Auction Financing
When planning to purchase equipment at an auction, there are two options:
- Pre-Arrange Finance: Getting pre-approved for a loan can provide confidence to bid within your limit and avoid overspending. It also ensures quicker access to funds, reducing the risk of missing out on a good deal.
- Post-Auction Finance: Whilst it is preferrable to have finance arranged prior, we can help with finance post auction.
- Pay cash for the equipment and then talk to us about reimbursement options.
Whatever your strategy, EXEQ Finance offers tailored loan products, competitive rates, and expert support to help you secure the used equipment you require.
Contact us on 0428 457 517 to find out more. We are committed to helping Australian businesses thrive by providing tailored finance solutions that meet your unique needs.