Can I get asset finance on used machinery?
Yes. Used vehicles, plant and equipment make up most of what asset finance lenders fund, and a three-year-old van or a five-year-old excavator from a dealer is as routine as a new one. Two things change the answer: how old the asset is, and who you are buying it from.
On our panel, 15 of the 38 asset finance lenders will fund machinery over ten years old, and 10 will fund a purchase from a private seller rather than a dealer (checked September 2026). Older kit from a private seller is fundable, but from a short list and with more checks.
Why age matters more than mileage or hours
A hire purchase or lease has to end while the asset still has resale value, because the asset is the lender's security. Lenders therefore set a maximum age at the end of the agreement rather than at the start: a lender with a twelve-year end-of-term limit will fund an eight-year-old machine over four years but not over five. That is why the same digger can be a yes on a three-year term and a no on a five.
Hours and condition matter too, particularly on plant, but they feed the valuation rather than the eligibility rule. A low-hours machine supports a higher advance; it does not move the age limit.
Dealer, private seller or auction
Buying from a dealer opens the whole panel: the lender pays the dealer, the invoice and warranty are in order, and title is clear. Buying from another business or a private individual narrows the list because the lender has to satisfy itself on ownership, condition and price without a dealer in the chain. Expect an independent inspection, proof the seller owns the asset outright (or that any finance on it is being settled from the proceeds), and payment direct to the seller.
Auctions combine the private-seller checks with a deadline. The lenders that do auction purchases can usually complete inside the auction house's payment window if the paperwork is ready before the hammer falls, so the practical advice is to have the lender lined up before you bid.
| Route | Lender list | Extra checks | Speed |
|---|---|---|---|
| New or used from a dealer | Whole asset panel | Standard | Days |
| Used from a private seller | 10 lenders on our panel | Inspection, title, direct payment | One to two weeks |
| Auction | Private-seller lenders that move quickly | As private seller, pre-approved before bidding | Inside the auction window if pre-arranged |
| Refinance of kit you own | Asset refinance lenders | Valuation, clear title | One to two weeks |
What the panel says
Distinct lenders on our panel with at least one live product matching each criterion. A guide to how wide each door is, not a promise about any case.
- 15 of 38 asset finance lenders will fund machinery over ten years old.
- 10 will fund a purchase from a private seller.
- 25 offer VAT deferral, funding the VAT until your return recovers it.
- 14 accept business adverse credit and 19 will consider a business that made a loss last year, because the asset carries the deal.
- 33 fund construction plant and 31 fund factory machinery, the two classes where used purchases are most common.
The VAT on a used purchase
If the seller is VAT-registered and the asset was in business use, VAT is charged on the sale and on hire purchase it is normally due at the start of the agreement. A finance lease spreads it across the rentals. VAT deferral, offered by some lenders, funds the VAT amount for the weeks until your return recovers it. A private individual selling a personal asset does not charge VAT, which is one reason private-seller deals are sometimes cheaper despite the extra checks. Confirm the VAT position of a specific purchase with your accountant.
We introduce limited companies and LLPs to the lenders whose age limits, seller rules and VAT options fit the asset you have found. This page is general information, not advice.
Frequently asked questions
Is there a maximum age for financed machinery?
Each lender sets its own, usually as an age at the end of the agreement rather than at purchase. Ten years at end of term is a common line; the lenders that go beyond it are a minority and tend to want shorter terms and a bigger deposit.
Can I finance a machine I have already bought?
Yes, through asset refinance: the lender buys the asset from you at an agreed valuation and you hire it back over a term, releasing the cash. The asset needs to be owned outright or the existing finance settled from the proceeds.
Do I need a deposit on used kit?
Usually 10 to 20 percent, sometimes the VAT plus a small deposit on hire purchase. Older assets and private-seller purchases tend to sit at the higher end because the lender wants more equity in the deal from day one.
Will bad credit stop me financing used machinery?
Not automatically. Because the lender holds the asset, 14 asset finance lenders on our panel accept business adverse credit. Expect a bigger deposit and a shorter term rather than a flat refusal, unless the adverse is recent and heavy.
Found the machine? Check it will finance
Make, model, age, price and who is selling it. We check the asset against lender age limits and seller rules before you commit to the purchase.
Sources
Checked September 2026. Age limits, deposits and VAT treatment are set by each lender and by the facts of the purchase; confirm the VAT position with your accountant.
Important information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
CapExpand Ltd (Company No. 14433858) is a commercial finance introducer, not a lender. We are not currently authorised or regulated by the Financial Conduct Authority and do not provide financial advice. All information on this page is for educational purposes only. Funding is subject to status and lender criteria. CapExpand will receive a commission from providers at no extra cost to you.