PRIVATE EQUIPMENT SALES: FINANCING, SALES, AND WHAT TO WATCH OUT FOR

DEROTTO Leasing

7 days ago

3 min read

“Risk comes from not knowing what you’re doing.” - Warren Buffett

Post Labour Day we we see businesses getting back into the swing of things and gearing up for the final quarter. For us at DEROTTO, we find this time of year is one of our busiest, and with that, we’re eager to grant you a speedy approval!

Thank you, as always, for trusting us with your equipment financing needs. DEROTTO gave away $4,300 in gas cards in August. YTD we have given away $26,825 in gas cards. To learn more about DEROTTO's gas card program, click here.

We always get the question:

Can I use DEROTTO to help sell my equipment? OR Can I use DEROTTO to finance equipment that I find privately?

The answer is absolutely; this is our bread and butter. Financing private equipment purchases is one of DEROTTO’s specialties. At least 90% of our business is used equipment financing and the majority of the equipment is sold privately. DEROTTO has several lending sources that will finance used equipment. Many people also assume that because the equipment is used, then the bank or credit union won't finance it. This can't be further from the truth. All of the banking and credit union sources DEROTTO works with will finance used equipment. I have seen banks finance 5 year old, 10 year old, 15 year old and old pieces of equipment.

Another important point to make about private equipment financing is if you are selling your equipment and you post the equipment for sale on Kijiji, Truck Trader, Facebook Marketplace or something similar, then you might consider adding "FINANCING AVAILABLE" in your ad. This tag line has proven effective to entice more buyer to your ad if your potential buyer is aware you have financing options to purchase the equipment.
If you are in this situation, you can leverage DEROTTO to help provide financing to your buyer. There is no cost to you to use DEROTTO to help your buyer secure financing for the equipment you are selling.
Something to think about!

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. We ensure all proper searches are completed so your equipment is free and clear before you take ownership.

A real recent example:

We recently worked with a client who purchased a crane through a private sale after being told it was lien-free. When we arranged the financing the lender discovered approximately $20,000 mechanics lien still owing on the crane 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.