Did you know you can finance used equipment with Beacon Funding? It’s true!
If you find a piece of equipment in the used market, there’s a good chance we’ll finance it regardless of age as long as it’s in good shape and being sold at a fair price. In this article, we provide you with 4 tips to consider before financing your next used equipment purchase.
In this article…
- Tip 1: Find a Lender Who Specializes in Financing Used Equipment
- Tip 2: Find Equipment in the Best Possible Condition
- Tip 3: Ensure the Asking Price is Aligned with Fair Market Value
- Tip 4: Take Advantage of Section 179 Tax Advantages
Tip 1: Find a Lender Who Specializes in Financing Used Equipment
Not all lenders finance used equipment. To ensure your greatest chance of approval, work with a lender with equipment expertise. Equipment-specific lenders, like Beacon Funding, are more likely to finance used equipment because they understand the value it brings to your business.
Why Beacon Funding should be your go-to used equipment financing source:
- Commercial truck and decorated apparel equipment financing since 1990
- Get more favorable approval terms & a variety of financing options.
- Financing programs without set age restrictions.
- Easy 100% digital application process.
- Get your questions answered with 1:1 financing support.
Whether you’re eyeing used equipment from a vendor or private seller, Beacon Funding’s professionals ensure a quick, professional, and trustworthy application process.
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Tip 2: Find Equipment in the Best Possible Condition
Conduct a Minimal Wear and Tear Assessment
Assess the physical condition of the equipment to gauge its wear and tear. Opt for equipment with minimal signs of use, as this often indicates durability and reliability.
Lower levels of wear can lead to reduced maintenance costs and a longer service life. Inspect critical components and surfaces, looking for any damage or excessive wear that could impact performance.
Verify Equipment Functionality and Power-On
Ensure that the equipment is not only in good physical shape but also fully functional. Request a demonstration or test to verify that the equipment powers on reliably and performs its intended functions without issues. This step is crucial to avoid investing in equipment that may require immediate repairs or upgrades, adding unforeseen costs to your acquisition.
Opt for Rigorous Inspection Processes
Choose equipment that has undergone a thorough inspection process. This can include comprehensive checks by certified technicians to assess the equipment’s overall condition, performance, and safety. A documented inspection history provides transparency and confidence in the equipment’s reliability.
If you’re unsure about the inspection process, consider consulting with experts or relying on reputable sellers who prioritize quality assurance.
Tip 3: Ensure the Asking Price is Aligned with Fair Market Value
It can be difficult to determine the market price for used equipment, which could lead to you overpaying for equipment.
If you're unsure if you're getting a fair price, ask your lender. Beacon Funding’s financing consultants have the tools to evaluate if you’re getting a good deal. With thousands of used trucks and equipment financed, we can recommend a fair price.
Remember: The longer equipment holds its value, the easier it is to get approved. Better terms may be offered for equipment with a longer resale value.
Tip 4: Take Advantage of Section 179 Tax Advantages
Thanks to Section 179, you can leverage the used equipment you financed for income tax savings.
What is Section 179? It’s a tax savings allows you to write off 100% of the equipment cost in the first year of financing, rather than spreading depreciation over several years. And yes, this valuable tax deduction applies even when financing used equipment.
LEARN MORE ABOUT SECTION 179