ALWAYS DO YOUR HOMEWORK WHEN BUYING EQUIPMENT PRIVATELY

Many businesses look to private sales when purchasing equipment but there’s more to it than just making sure the machine runs well.

Most buyers focus on inspections and condition but often overlook a critical step: checking for liens or encumbrances.

👉 Don’t rely on the seller’s word.

Even if the seller believes the equipment is clear, liens can still exist and if you buy it, those liens become your responsibility.

A real recent example:

We recently worked with a client who purchased a truck through a private sale after being told it was lien-free. When we arranged a sale-leaseback (where a lender reimburses the purchase), the lender discovered approximately $30,000 still owing on the truck that the seller had not addressed.

Luckily, we caught it early, saving our client from a potentially very costly situation.

What should you do?

The easiest and safest approach is simply let DEROTTO handle it for you. We can take this burden off your busy hands.

We take care of all the necessary due diligence, including lien and history searches, so you don’t have to worry about missing anything. It’s a small step that can prevent major financial surprises and give you full confidence in your purchase.

Why it matters:

Liens can come in many forms, including:

• Unpaid repair bills (mechanic’s liens)

• Court judgments

• Bank agreements (like a General Security Agreement – GSA)

In some cases, a seller may not even have the legal right to sell the equipment without lender approval.

Think of it like buying a house without checking for unpaid property taxes you don’t want to inherit someone else’s debt.

How DEROTTO Helps

Financing private equipment purchases is one of DEROTTO’s specialties. We ensure all proper searches are completed so your equipment is free and clear before you take ownership.

If you have questions about equipment financing, reach out anytime we’re here to help.

DEROTTO Leasing