Used equipment and truck finance: Private sales, PPSR and age rules

How does used equipment finance work?

Used equipment finance uses the same loan types as new equipment: a chattel mortgage, a finance lease or commercial hire purchase, secured against the asset you're buying. The lender assesses your business and your credit file, then the asset itself: what it is, how old it is, what it's worth and who is selling it.

Most sole traders I work with use a chattel mortgage, so the business owns the gear from day one; larger businesses with fleets often lean to leases. My equipment finance page covers the loan types and what I finance. If you're buying a truck, the truck finance page covers the light and medium trucks I finance. I don't finance heavy rigs or prime movers, new or used.

For the bigger picture on how equipment finance is structured, from deposits to balloons, my small business equipment finance guide goes through it. This post sticks to what changes when the asset is second-hand.

How old can equipment or a truck be for finance?

Most of my lenders accept used equipment or a truck up to about 20 years old at the end of the loan term, though it varies a lot from lender to lender. What they care about is how old it will be when the loan ends, not how old it is today.

That means the asset's age and the loan term work together. A 10-year-old truck on a 5-year loan finishes at 15. A 17-year-old trailer on the same loan finishes at 22, past the point where most lenders start asking for more.

Over about 20 years at the end of the term, lenders usually want a valuation. Older gear can still be financed; it just takes more evidence. From my desk: a recent client was buying a trailer about 25 years old, and the lender asked for clear photos and close-ups to check for obvious damage and significant wear and tear.

Farm gear follows the same pattern. With tractors, not much holds the deals up. When something does, it's usually an older tractor outside the lender's normal end-of-term age, or attachments that don't have serial numbers. My farm equipment finance page covers seasonal repayments and what lenders ask on tractors.

How does finance work on a private sale of equipment or a truck?

On a private sale, the lender pays the seller directly at settlement, after the checks on the asset are done and any finance the seller owes on it is paid out. You don't hand over your own money and wait for the loan to catch up.

1. Get the asset details first. Year, make, model, serial number or VIN, and hours or kilometres. Lenders approve a specific asset, so the clearer the details, the faster it goes.
2. Check who owns it. The seller's ID and proof of ownership, and a PPSR search on the asset or the seller (more on that below).
3. Get evidence of condition. Photos, close-ups of wear and any damage, and a valuation if the lender asks for one.
4. Sort out any money owing. If the seller still owes on it, the seller's lender gives a payout figure, and that amount is paid to them at settlement.
5. Settle. The lender pays the payout (if any) and the balance to the seller, and the asset hands over clear.
6. Transfer the registration for anything road registered, such as a truck or trailer.

From my desk: on a private sale truck or piece of equipment, I do all the work. I get the paperwork from the seller, such as the payout letter and registration papers, run the checks, and make sure any finance on the asset is paid out and cleared at settlement, so it comes to you free of the seller's debt.

Private sellers come with less protection. Most consumer guarantees don't apply to a one-off sale between two people where the seller isn't running a business, though the guarantees of clear title, undisturbed possession and no hidden debts or charges still do (accc.gov.au). That's a right you'd have to chase the seller for. A PPSR search before you pay is a lot simpler. The same applies at a traditional auction, such as a clearing sale: most consumer guarantees don't apply, though title, undisturbed possession and no hidden debts still do (accc.gov.au).

What does a PPSR search show on used equipment?

A PPSR search shows whether the asset has a security interest registered against it, which may mean money is still owed on it. You also get a search certificate as proof of the result at the time you searched (ppsr.gov.au). An online search costs $2 (as checked November 2026).

How you search depends on what you're buying. On the PPSR, a motor vehicle is anything with a VIN, chassis or manufacturer's number that is built to travel on land at 10 km/h or more with more than 200W of motor power, or wheeled gear built to be towed at over 10 km/h. That's usually a truck, tractor or trailer, and some self-propelled machinery can qualify too (ppsr.gov.au). Those are searched by serial number. Other machinery and equipment is non-serial-numbered, so you do a grantor search on the seller instead: the company's ACN, or an individual's name and date of birth as shown on their driver licence (ppsr.gov.au).

The PPSR's own example is a buyer looking at a privately sold excavator. A $2 search on its chassis number showed the seller's bank had a registration over it, so the buyer agreed to go ahead only if the registration was removed (ppsr.gov.au). That is exactly how it should go.

For a truck, trailer or tractor, the vehicle search usually also shows whether it's recorded as stolen or written off, though that data comes from state agencies and isn't always up to date. It doesn't show how much is owed, and the PPSR suggests searching on the day you buy or the day before (ppsr.gov.au). My machinery finance page covers how this works on excavators and other plant.

Can you claim GST on used equipment bought privately?

Usually not. If you buy a second-hand vehicle from someone who isn't registered for GST, there's no GST in the price and, unless you're buying it to resell, you can't claim a GST credit (ato.gov.au). The same logic applies to equipment: the ATO's conditions for a credit include that the price included GST, and you need a tax invoice for purchases over $82.50 (ato.gov.au).

That matters when you compare prices. A dealer's $55,000 truck with GST in the price may cost a GST-registered business $50,000 once the credit comes back. A private seller's $52,000 truck with no GST costs $52,000. Check whether the seller has an ABN and is registered for GST before you compare.

The instant asset write-off is still open on used gear. The ATO says small businesses can use it for new and second-hand assets, deducting the business portion in the year the asset is first used or installed ready for use, for assets costing less than $20,000, for businesses with aggregated turnover under $10 million (as checked November 2026) (ato.gov.au). My instant asset write-off guide explains how it sits with finance. This is general information; check your own position with your accountant.

What do lenders check on a used truck?

On a used truck, lenders check the age, value, condition and seller, plus the road vehicle details. That means the age at the end of the term and who's selling, as with any used asset, then the VIN, the registration and what it will be used for. On a used light or medium truck, lenders don't ask for anything different in particular from other used gear.

• The truck class. I finance light and medium trucks. In Queensland, a car (C) licence covers vehicles up to 4.5 tonnes GVM, a light rigid (LR) licence covers trucks up to 8 tonnes GVM, and a medium rigid (MR) licence covers trucks over 8 tonnes with no more than 2 axles (qld.gov.au). Make sure whoever drives it holds the right one.
• The seller's inspection certificate. This is the seller's job, not a lender check, but ask for it: when a registered vehicle is sold in Queensland, the seller needs a current inspection certificate: a safety certificate for most light vehicles, and a certificate of inspection for heavy vehicles (qld.gov.au).
• Kilometres and condition. Service history and photos help, and an older truck may need a valuation.
• The body and fit-out. Make sure the invoice describes the tray, pantech, tipper or refrigeration unit, because it's part of what's being financed.

Buying an electric van or truck second-hand? My electric commercial vehicle finance guide covers the battery checks to add.

What documents do you need for used equipment or truck finance?

You need your usual business documents plus the asset's paperwork. That means an invoice or bill of sale, the serial number or VIN, the seller's details and, on older gear, photos or a valuation.

• Your ABN and, if you have it, GST registration. Under 2 years of ABN, lenders generally want GST turned on and some financials showing income, such as business bank statements or BAS.
• A dealer's tax invoice, or a private seller's invoice or bill of sale showing the price, the asset and its serial number or VIN.
• The seller's ID and proof of ownership, and a payout letter if they still owe money on it.
• Hours or kilometres, serial numbers and overall condition. On private and clearing-sale tractors, those are the usual things lenders ask for.
• Clear photos and close-ups, and a valuation if the asset will be over about 20 years old at the end of the term.
• For a road vehicle, the registration details and the inspection certificate.