Used vehicles and equipment can be financed, often with the same structures as new ones: a chattel mortgage, a lease or a business loan. What changes is how closely lenders look at the asset itself, because an older asset is worth less and harder to resell if something goes wrong.
What lenders look at with a used asset
- Age: many lenders care about the asset's age at the end of the term, not just today, so a longer term on an older asset may be harder to arrange.
- Condition and use: kilometres, engine or operating hours, service history and any damage.
- Price against market value: a lender may value the asset and lend against that figure, not the price you agreed.
- The seller: a dealer, an auction or a private seller, since each carries different risks and paperwork.
- You: your ABN and trading history, your income, your deposit and your other commitments.
Before you buy
- Get an independent inspection, or a valuation for larger items.
- Search the PPSR to confirm no finance is owing on the asset.
- Check what warranty or support remains and who provides it.
- Ask for the details in writing: serial or VIN, hours or kilometres, and the seller's identity.
- Check how GST applies with your accountant, because it can differ between a dealer and a private seller. For example, the ATO says that if you buy a second-hand vehicle from someone who is not registered for GST, and you do not plan to sell or exchange it, you cannot claim a GST credit.
New or used: what changes in the numbers
Lenders can price used assets differently from new ones, and may offer shorter terms. The effect is different for each lender, so compare the total cost, not just the repayment. See new vs used car loan rates for the car side of the same question, and our truck and ute finance documents checklist to get your paperwork ready.
Getting finance lined up
It helps to find out what a lender may offer before you commit to a price, particularly at auction or in a private sale. A broker can compare lenders for the asset and explain the options, including chattel mortgage vs lease. You can also check the repayment on your own with the finance calculator.
The takeaway
A used asset is financeable, but the lender is judging the asset as well as you. Do your checks early, compare total cost and have the finance in view before you pay. loan-o compares 50+ lenders and can review any offer for free; start a free finance check with no credit check to enquire.
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Finance is subject to lender approval, lending criteria, terms, conditions, fees and charges. The information in this article is general and does not take into account your personal or business needs.
Last reviewed: 8 October 2026. This content provides general information only. It should not be treated as personal financial, tax, legal or credit advice.
Frequently asked questions.
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Often, yes. Lenders look at the asset's age, condition, hours or kilometres, price against market value and the seller. Appetite varies by lender and asset, so a broker can narrow down who may suit.
It can be. Some lenders limit the age of the asset at the end of the term, ask for a valuation or inspection, or offer shorter terms. Rates can differ too, but it depends on the lender and your situation.
Often, depending on the asset, the seller and the lender. Some lenders ask for extra checks on a private sale, such as proof of ownership and a search for existing finance.
The Personal Property Securities Register shows whether finance is owing on, or a security interest is held over, an asset. It is wise to search before buying second-hand, especially in a private sale, so you do not buy something a lender has a claim over.
It helps to know what you can borrow and on what terms before you commit to a price, particularly at an auction or private sale. Approval is still subject to the lender's checks on the specific asset.
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