Purchasing equipment is expensive, and as such, it pays to shop around. Oftentimes, the best way to secure a great deal is leasing equipment from a private sale, either second-hand or through an independent seller, as opposed to buying new or directly through a vendor. But banks typically don’t finance private sales. Fortunately, there is a solution that allows customers to secure financing for equipment purchases through private sales, and that’s what we’ll be looking at in this article.
Keep reading to learn:
- What a private sale is
- The pros and cons of private sales
- The precautions to take when buying privately
- How to lease equipment from a private sale
- And much more
What is a Private Sale?
In simple terms, a private sale is when you purchase something from another person rather than from a company. Buying used equipment or finding equipment for sale through classified sites like AutoTrader and Craigslist are great examples.
The Differences Between Leasing Equipment From a Private Sale and Leasing from a Vendor
There are some key differences between buying privately and buying from a vendor. For starters, when you buy privately, you’ll almost always get a much better deal. However, when you buy equipment in a private sale, it may not be in perfect condition, and it can sometimes be difficult to secure financing for private sales. That said, it’s very possible to find like-new equipment for a fraction of the normal price when purchasing via a private sale, and there are financing options available if you know where to look.
The pros and cons of leasing equipment from a private sale
There are definitely some pros and cons to consider when deciding whether you want to buy privately or through a vendor, let’s look at them now.
Prices are often negotiable
When you purchase something through a private sale, you can usually negotiate the price, whereas when you buy from a store, retailer, or other vendors, the prices are usually firm.
You can find a better deal
In almost all cases, you’ll be able to save a ton of money when purchasing your equipment privately rather than through a vendor. Sometimes you can even source equipment for half the price that it would cost when buying from a traditional outlet.
Equipment is often like new
Many people think that buying privately means getting subpar equipment, but in many instances, this is simply not the case. Very often, private sellers are looking to off-load gently used equipment that is almost brand new and is in perfect working condition.
There is no tax to pay
When you buy equipment through a private sale, you won’t need to pay sales tax, which in some cases can amount to thousands of dollars saved.
Equipment may be damaged
It’s true that sometimes, disreputable sellers may list damaged equipment for sale in hopes of recuperating their money on the equipment. As such, it’s important to protect yourself when purchasing privately, and there are a number of ways to do that, which we will look at momentarily.
A warranty may not be included
More often than not, when you purchase equipment privately, it will not include the original warranty, which means that repairs will generally need to be covered out-of-pocket. However, sometimes a portion of the original warranty will still be in place and can be transferred over to you as the new owner.
The precautions to take when purchasing from a private sale
As mentioned, some private sellers list damaged equipment for sale, so when buying privately, it’s always wise to exercise due diligence and do your homework before going through with the purchase. Let’s go over a few of the ways that you can protect yourself when purchasing equipment from a private sale.
Overall condition of the equipment
You should always inspect the overall condition of the equipment before you buy it. Simply put, you should never take a private seller’s word that their equipment is in perfect working condition; the only way to ensure this is by testing and inspecting the equipment yourself.
Always ask to see any available inspection reports for the equipment you’re considering before handing over your money. If no inspection reports are available, then that’s a red flag that could indicate something isn’t quite right with the sale.
KMs and Hours
Be sure that you consider the mileage or hours before making a purchase. Vehicles and other pieces of equipment that have high mileage are much more likely to require costly repairs in the immediate future.
Private sales can be leased by Equipment Finance Canada
If you find a great piece of equipment and would like to purchase it through a private sale but don’t want to invest all of the money upfront, then you’re in luck. Equipment Finance Canada can help you finance equipment purchases from private sales, and there are a number of excellent advantages you’ll enjoy when financing through EFC.
Why lease through Equipment Finance Canada
Equipment Finance Canada helps businesses and individuals with leasing equipment from a private sale. Let’s go over some of the best reasons to finance your equipment through Equipment Finance Canada when buying from a private seller.
Local banks do not specialize in private sales
In most cases, your local bank or credit union will not help with financing a private sale. The same goes for equipment leasing and equipment financing. Simply put, it’s almost never possible to finance used trucks / used equipment through a traditional lender. That’s where Equipment Finance Canada is different. We help people finance the equipment they want regardless of who’s selling it.
We have a wide variety of lenders who are willing to fund private sales
At Equipment Finance Canada, we take pride in having some of the best lenders anywhere. We have a large network of lenders who are willing to fund private sales, and almost always at very competitive rates.
We can pre-approve buyers
When you want to finance equipment, it helps to know what your budget is. At Equipment Finance Canada, we pre-approve buyers so that they can search for equipment that they know they’ll qualify for.
We are able to pay sellers directly
Unlike most traditional lenders, we pay sellers directly so that you never have to worry about handling a large cash transaction yourself. Simply file your application, get pre-approved and let us know what you’d like to buy and from whom; we’ll take care of the rest.
We ensure equipment is free and clear
To further assist you when buying equipment from a private sale, we personally ensure that the equipment is free and clear, that there are no liens on the equipment, and that everything is above-board, which can save you a ton of problems down the road.
Purchasing equipment from a private sale is a great way to get the equipment you need for a fraction of the price you’d pay to a vendor. That said, it’s important to do your homework when buying privately, but as long as you inspect the equipment yourself, this can be a great cost-effective means to acquire the equipment you want without breaking the bank. Traditional lenders often don’t finance private sales, but Equipment Finance Canada can help. So, if you want a equipment lease from a private sale, then be sure to contact EFC today to learn more or submit an application.