6 min read read
Machinery and vehicle auctions, and many private sales, expect payment within a short window — often 24-48 hours — with no allowance for finance to be arranged after the hammer falls. That means the finance conversation has to happen before you bid or make an offer, not after.
The situation
Used plant, agricultural machinery, commercial vehicles and specialist equipment often come to market through auction houses or dealer/private sales at genuinely good prices, particularly where a business has ceased trading or is disposing of surplus kit. The catch is timing: auction houses generally require cleared funds quickly, and private sellers rarely wait around once a price is agreed.
Lenders can finance private and auction purchases, but the underwriting looks slightly different from a new-equipment purchase from a dealer — valuation, condition and provenance of the asset all matter more, since there's no manufacturer invoice to rely on.
What tends to go wrong
- Bidding or agreeing a price before checking whether the specific asset and seller type are financeable
- Assuming the auction house's own finance partner offers the best or only route, without comparing it against an independent facility
- Missing the payment deadline because finance paperwork wasn't started until after the sale
- Not having an independent valuation or inspection report ready, which some lenders require for used or private-sale assets
How we would structure it
The practical approach is to arrange agreement in principle before the auction or before finalising a private sale price, based on your budget and the type of asset you're targeting, then confirm the facility quickly once the specific asset and price are known. Hire purchase is the usual structure for a straight purchase; where you're buying to add to an existing fleet, refinancing another owned asset can sometimes release funds faster than a fresh facility on the new purchase.
| Step | Typical timing |
|---|---|
| Agreement in principle | Before the auction or offer |
| Asset identified, price agreed | At the sale |
| Facility confirmed and funds released | Within the payment deadline, typically 24-48 hours |
Worked example
Illustrative auction purchase
- Used excavator, hammer price
- £42,000
- Buyer's premium and fees
- £2,100
- Deposit paid
- £4,410
- Structure
- Hire purchase, 5 years
- Monthly payment (illustrative)
- £820
Figures are illustrative only and depend on rate, deposit, asset condition and underwriting at the time.
What to have ready
- A budget range and the type of asset you're targeting, ideally before the auction date
- Latest accounts or trading history
- Auction house terms and payment deadline
- Any inspection report, provenance documents or logbook available for the specific asset
If you have an auction date or a private sale in progress, get in touch as early as possible — an agreement in principle in hand gives you the confidence to bid or negotiate knowing the funding side is covered.
Next step
Talk through the numbers with us
Send us the details of the asset and we will come back with an indicative figure and a properly structured option from the funder panel. No obligation, and no pressure to proceed.