Leasing Equipment From a Private Sale

Leasing equipment from a private sale lets you finance a great second-hand deal that a bank usually will not touch. Buying used through a private seller, off a classified site or another business, often beats buying new from a vendor on price, but traditional lenders rarely finance private sales. There is a way around that, and this guide covers it.

A private sale can land you like-new equipment for a fraction of the price, which protects cash flow. And financing is available if you know where to look. The leasing market is large: as Statistics Canada reports, “The commercial and industrial machinery and equipment rental and leasing industry generated $17.5 billion in operating revenue in 2023, up 8.5% from 2022.” (Statistics Canada).

What Is a Private Sale?

A private sale is simply buying from a person rather than a company, used equipment off AutoTrader or Craigslist, say, instead of a dealer. The upside is price. The trade-off is that the gear may not be perfect, and a lease or other financing is harder to arrange, which is the whole reason this guide exists.

The Pros and Cons of a Private Sale

The pros are real. Prices are usually negotiable, unlike a dealer's firm sticker. You can save a lot, sometimes half off the purchase price of buying new. The equipment is often nearly new, since many a private seller is just off-loading gently used gear in good working order. And in many cases there is no sales tax to pay, which can save thousands on the purchase.

The cons are worth knowing too. A disreputable seller might list damaged equipment hoping to recoup their money. And a private sale usually comes without the original warranty, so repairs can fall on you, though occasionally a transferable portion of the warranty remains. Knowing both sides before the equipment purchase keeps you out of trouble.

Precautions When Buying Privately

Do your homework. Inspect the equipment yourself rather than taking the seller's word, and test it before any money changes hands. Ask for any inspection reports; if there are none, treat that as a red flag. And check the mileage or the hours, since high-use used equipment is far more likely to need costly repairs soon after the purchase.

Lease a Private Sale Through Equipment Finance Canada

Found the right piece but do not want to pay it all upfront? Equipment Finance Canada finances equipment purchases from private sales, with real advantages over a bank. Local banks and credit unions rarely touch a private sale, and the same goes for used trucks or used equipment through a traditional lender. EFC is built differently, financing the equipment you want regardless of who is selling it.

There is a wide network of lenders willing to fund private sales at competitive rates. EFC can pre-approve you for a lease, so you shop knowing your budget and your monthly payment before you commit. It pays the seller directly, so you never handle a large cash transaction yourself. And it confirms the equipment is free and clear, no liens, everything above-board, before you buy. Spread the cost into manageable lease payments and the deal gets easier still.

Summary

Buying equipment from a private sale gets you what you need for a fraction of the vendor price. Do your due diligence, inspect the gear before you buy equipment, and a lease is a genuinely cost-effective way to acquire the equipment you want without breaking the bank. Traditional lenders often will not finance a private sale, but Equipment Finance Canada will, right up to the end of the lease and your option to own. Want an equipment lease from a private sale? Contact Equipment Finance Canada today.