Start with the cost of a working machine
Compare the advertised price with the amount needed to make the equipment useful. This hypothetical example puts two acquisition budgets on the same basis; it does not value the machines or compare their full lifetime cost.
| Acquisition cost | Used machine A | Alternative machine B |
|---|---|---|
| Purchase price | $42,000 | $56,000 |
| Immediate repairs | $8,000 | $0 assumed |
| Delivery and commissioning | $2,000 | $2,000 |
| Temporary hire during repairs | $3,000 | $0 assumed |
| Total acquisition and transition cost | $55,000 | $58,000 |
Swipe or scroll the table sideways to see every column.
The $14,000 advertised-price difference becomes $3,000 after the entered repairs and temporary hire. Compare inspection evidence, remaining life, operating costs and support before deciding whether that saving is worthwhile. Funding may not cover every cost in the table.
Inspect condition independently of the finance discussion
Collect make, model, age, usage and service history, then have condition assessed for the intended work. Identify known faults, immediate repairs, missing accessories and the availability of parts or specialist servicing.
A provider’s willingness to consider the asset is not a mechanical warranty. Ask the supplier or inspector what could stop the machine working and how long repairs would take. Compare the proposed finance term with the useful life you reasonably expect.
Use the right ownership and security checks
Confirm the seller’s identity and authority to sell. The official PPSR machinery guidance shows why seller details may be needed: some equipment searches are against the person or organisation selling it. Do not assume every machine can be searched using its serial number. Vehicles have their own search guidance.
Keep the correct search result and resolve any identified security interest or existing finance before paying. Ask the relevant adviser or provider to confirm the payout and release arrangements. A condition inspection does not establish the security position.
Before an auction bid or private-sale commitment
Work backwards from the seller’s payment deadline. Establish the inspection, finance conditions, deposit and settlement arrangements before a commitment becomes binding. Have the actual sale conditions checked rather than assuming an auction or private purchase can be cancelled if finance is unavailable.
- Get the correct asset description, seller information and sale terms.
- Identify the deposit, balance deadline and any buyer or collection charges.
- Confirm what the provider still needs and any conditions remaining.
- Agree how identified existing finance and security releases will be handled.
- Arrange transport, insurance and the cash for separately paid repairs.
How Atlas helps assess a used purchase
Send the sale details, condition information and payment deadline as early as possible. We can help define the funding requirement, compare the proposed commitment with the asset’s intended use, and identify the information needed to investigate options.
If the price is attractive only because the business can repair or transport the machine itself, explain those assumptions. They belong in the budget alongside borrowed funds and the cash contribution.
What to prepare
- Seller identity, asset identifiers and authority-to-sell information
- Independent condition findings, service history and repair quotes
- Correct PPSR/search information and existing-finance arrangements
- Sale contract or auction conditions, deposit and payment deadline
- Complete acquisition budget, including temporary hire and setup
- Available cash, expected useful life and proposed replacement date
Common questions
Is there a maximum age for used-equipment finance?
There is no universal limit to apply across providers or asset types. Age at purchase and at the end of the term, condition and value can all matter. Bring the actual asset detail for assessment.
Can I buy privately rather than through a dealer?
Some providers consider private sales. Confirm their requirements before committing and prepare the seller, condition, security and payment evidence.
Does a clean inspection mean there is no money owing?
No. Condition and security are different checks. Use the relevant PPSR guidance and address any existing finance separately from the mechanical inspection.
Can I arrange finance after winning an auction?
Relying on that can leave you with a payment obligation before funding is confirmed. Establish the finance position and sale conditions before bidding.
Will repairs and transport be financed too?
Do not assume so. Separate them from the asset price and confirm which items are included in the proposed finance. The remaining costs need available cash.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.