Private-party sales can offer a cost-effective way to purchase used commercial equipment. But while the potentially lower cost of the equipment is a significant advantage, there are two possible drawbacks of private-party sales that you need to consider before you buy.
First, there’s a higher risk of complications with a private party than with an established vendor. And second, even when used, commercial equipment can carry a hefty price tag. What if you can’t afford the full price up front? Will you have to turn elsewhere to get the equipment you need?
In this article, we’ll outline a few ways to authenticate and simplify your private party equipment purchase. We’ll also explain how Team Financial Group can provide financing whether you’re looking to purchase equipment through a vendor or a private party.
What Is a Private-Party Sale?
A private-party sale is any transaction in which you purchase from an individual owner rather than a vendor or dealer. Individuals often engage in private-party sales when they buy goods at yard sales or through websites like eBay and Craigslist. However, businesses can also take advantage of private-party sales to purchase commercial equipment.
Private-Party Equipment Sales and Where to Find Them
Private-party sales are a common method for purchasing heavy equipment such as construction vehicles or agricultural machinery. The following are examples of the different options or ways business owners come across equipment that is for sale by a private party:
- Business network: Ask your business contacts if anyone they know is looking to sell used equipment.
- Newspaper or industry journal: Some people will post equipment sale ads in trade newspapers or other industry publications.
- Online sales: Websites like Equipment Trader will let you find all types of commercial equipment for sale.
- In-person public auctions: Used equipment often comes up for sale at public auctions, so check with local auction venues.
Private-Party Equipment Purchase Check List
When you purchase used equipment from an individual rather than a verified vendor, you take the risk of getting less (or more) than you bargained for. Use this checklist before you purchase equipment from a private seller to make sure everything is in order.
- Ownership: Make sure the equipment is fully paid off and not stolen. Ask for an original invoice, bill of sale, or contact info for the original vendor or dealer.
- Bill of sale: If a sale is legitimate, the seller should be able to provide you with a detailed bill of sale that matches the agreed-upon terms.
- Liens and loans: Make sure there are no current liens or loans on the equipment. Ask the seller and check your state’s UCC lien search to verify.
- Documentation: Purchase the equipment using a check, automated clearing house payment, wire transfer, or another method that provides evidence of the sale.
How to Pay for Equipment Purchased From a Private Seller
Let’s say you found a gently used truck trailer being sold online by a private seller, and everything appears to check out. However, as you’re looking over your finances, you realize that even the great price you’re getting is going to put temporary stress on your company’s cash flow. What should you do?
Fortunately, commercial equipment financing can relieve your cash flow stress. With a financing partner, you get the equipment when you need it, and you get to make convenient monthly payments rather than deal with one massive up-front expense.
RELATED: Business Health: How Equipment Financing Can Help Your Cash Flow
Not all equipment financing companies or banks will provide financing solutions for equipment purchased in a private-party sale, but we do at Team Financial Group. We can provide fast and flexible financing whether your purchase comes through a vendor or a private party.
Team Financial Group Finances New, Used, and Private-Party Sale Equipment
At Team Financial Group, we can provide financing solutions for all your commercial equipment needs. If one of your business contacts is willing to sell you the perfect piece of equipment at a great deal, but your cash flow doesn’t accommodate an outright purchase, we can help!
To get fast, flexible financing today, just fill out our easy online application and let us do the rest.
The content provided here is for informational purposes only. For financial advice, please contact our commercial financing experts.