With today’s skyrocketing gas prices, supply chain issues, and new equipment shortages, many businesses are forced to buy used equipment. While it may sound like bad news, we’ll show you the bright side! The remaining warranty on your newly acquired used equipment will transfer, you’ll pay less money and won’t have to absorb the immediate depreciation that occurs out of the gate, and the best part, you get the equipment right away. Being prepared to make this move can prove to be critical to several components of your business, which means finding the right lending partner is just as vital.
- First of all, you’ll want to be sure to find a lender that will pre-approve you before you go shopping. Getting pre-approved for used equipment will ensure you won’t miss out on that awesome deal because you didn’t have your funds readily available to snatch it up.
- Second, check that your lender will do private party transactions, since many dealers are thin on used equipment you may need to buy from a direct seller. However keep in mind many of the nuances that the dealer typically performs will now fall on the lender, seller, and even yourself. For this reason, ensuring they will include all soft costs in the loan will protect you from being surprised with out of pocket expenses such as freight/delivery, wraps, tax, title, etc. Some lenders will also allow you to finance attachments for your equipment from multiple dealers.
- Finally, find out upfront if your lender has any age restrictions on used equipment and, if applicable, if they deal in titled equipment.
Bottom line, finding a lender that does a lot of private party transactions will ensure a smooth experience and getting preapproved is key so you can move forward, make that offer, and run your business on the bright side.