Private Sale vs Dealer Equipment: How to Finance Either

Not all business equipment comes fresh off a showroom floor.

In fact, many Canadian businesses choose to buy used or off-market equipment—from other operators, auctions, or classifieds—to save money or access hard-to-find models.

But when it comes to financing, there’s often a misconception:

“You can only finance dealer equipment.”

That’s not true. You can absolutely finance private-sale equipment—it just involves a few extra steps to protect everyone involved.

In this guide, we’ll explain:

• The key differences between private sale and dealer financing
• What documents you’ll need for each
• Why private deals are still worth pursuing
• How Mehmi helps simplify private sale approvals

Why Many Businesses Buy Equipment Privately

✅ Lower Price Point

Used equipment from another business often costs 20%–40% less than buying new.

✅ Local Availability

You may find what you need in your region, ready for pickup—especially with trucks or trailers.

✅ Faster Transactions

No need to wait for shipping, PDI, or OEM scheduling delays.

✅ Real-World Proven Use

You can inspect the asset in working condition, with service records and photos.

Private sales are common in industries like transportation, construction, food service, and healthcare—especially for:

• Used trucks and trailers
• Skid steers and attachments
• Commercial fridges or ovens
• Medical/dental chairs
• Generators, welders, or pressure washers

Key Differences: Private Sale vs. Dealer Equipment Financing

What You Need to Finance a Private Sale

Financing a private deal isn’t harder—it just requires more info. Here’s what lenders typically ask for:

✅ 1. Bill of Sale

Must include:

• Buyer and seller names
• Equipment description (make, model, serial #)
• Price
• Payment terms
• Date and signatures

✅ 2. Photos of the Equipment

Clear pictures help validate condition, especially if there’s no inspection.

✅ 3. Ownership Verification

Lenders want to confirm the seller owns the asset free and clear (or has a payout letter if it’s financed).

✅ 4. Lien Search (if applicable)

A PPSA or UCC search can reveal if any active liens exist. Mehmi helps run this as part of due diligence.

✅ 5. Proof of Business & Bank Statements

As with all financing, you’ll need to show that your business can support the loan.

Real Case Study: Private-Sale Truck Purchase

Business: Alberta-based dump truck contractor
Need: 2017 Kenworth T800 with 550,000 km—private seller asking $68,000
Challenge: No dealer invoice, unit needed within 5 days for new municipal bid

What They Did:

• Sent bill of sale, photos, and VIN details
• Seller provided payout letter for existing lien
• Approved and funded in under 72 hours through Mehmi’s lender network

Outcome:
Client picked up the unit before weekend, won the contract, and financed over 48 months with deferred first payment.

Dealer Financing: Simpler, But Not Always Cheaper

Buying from a licensed equipment dealer usually involves:

• Fewer documentation requirements
• Faster approvals
• Optional warranty or maintenance packages
• Structured delivery and setup
• Higher price tag and less room for negotiation

Many lenders have dealer-preferred programs—but this doesn’t mean you must buy from one to qualify for financing.

When a Private Sale Makes Sense

• You found a great used unit with low hours or km
• The asset isn’t sold by dealers anymore (older models)
• You’re buying from a retiring business owner
• You need to act fast on an auction or local ad
• The price makes sense—even with a few extra financing steps

How Mehmi Supports Private Sale Equipment Financing

We specialize in helping clients:

• Evaluate private-sale deals
• Ensure clean titles and proper documentation
• Get pre-approved so they can shop with confidence
• Bundle inspection or transport costs into financing
• Structure fast turnarounds (often in 24–72 hours)

Explore Leasing & Loans or Refinancing Options if you’re planning to upgrade later.

FAQs: Financing a Private Equipment Purchase

Can I finance used equipment from Facebook Marketplace or Kijiji?
Yes, as long as the seller is a verified business or individual and documentation is clear.

Can I buy equipment from another province?
Yes. Interprovincial deals are common—just allow time for lien checks and delivery planning.

Can I bundle transport or install into the loan?
Often yes. Many lenders allow add-ons like transport, accessories, or setup to be financed together.

Can I finance multiple private-sale assets at once?
Yes, especially with a bundle loan or master lease. Great for growth or multi-unit upgrades.

Final Word: Private Deals Can Be Smart—and Fully Financeable

Don’t let the lack of a showroom stop you from financing quality equipment.

Whether you're buying from a dealer or a neighbour in the next town, the key is documentation, due diligence, and structure.

Mehmi helps you navigate both scenarios—so you can secure the right asset, at the right price, on the right terms.

Found the perfect used truck, oven, or trailer—but unsure how to finance it?
Use our calculator or talk to a credit analyst about how to finance private-sale and off-market equipment confidently.

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