Last updated: 8 December 2025 – all rates & tax rules verified this week
Written & reviewed by the Ding Financial team – Australian Credit Licence 222640, equipment finance specialist brokers
⚠️ Important Disclaimer
All information on this page is general in nature and does not constitute personal financial, taxation, or legal advice.
Rates, approval times, and eligibility are indicative only and vary based on individual circumstances, credit profile, equipment condition, seller verification, and lender criteria.
There are no guarantees on interest rates, approval speed, or funding timelines.
Tax benefits (including the $20,000 instant asset write-off) depend on your specific situation and current ATO rules.
Please contact Ding Financial or your own adviser before making any decisions.
Private Sale Equipment Finance NSW – Fast Approvals, Competitive Rates
Finance excavators, trucks, forklifts, and machinery from private sellers across NSW. Compare 25+ specialist lenders, understand the $20k instant write-off, and get indicative quotes from Ding Financial. Trusted by 150+ NSW contractors buying privately.
Get a No-Obligation Indicative QuoteImportant Tax & Financial Disclaimer
General Information Only: The information provided on this page is for general guidance purposes only and should not be considered as professional tax, legal, or financial advice.
Seek Professional Advice: You must seek professional advice from a qualified accountant, tax advisor, or financial planner regarding your individual tax circumstances, strategies, and current regulations before making any financial decisions.
ATO Requirements: For official information about tax deductions, instant asset write-offs, depreciation schedules, and current ATO requirements, always cross-reference with the Australian Taxation Office website:
Tax laws and regulations are subject to change. Always verify current requirements with the ATO and consult with professional advisors before making equipment finance decisions.
Why Finance Equipment from Private Sellers?
Advantages
- Better Prices: Save 15–30% vs dealer markup
- Wider Selection: Access Gumtree, eBay, local classifieds
- Direct Negotiation: No dealer commissions or fees
- Full History: Often better maintenance records from owner-operators
- Tax Benefits: Same $20k instant write-off eligibility
Risks to Watch
- No Warranty: Sold as-is (no dealer guarantees)
- Hidden Issues: Requires thorough pre-purchase inspection
- Slower Approvals: Extra verification needed (seller ID, PPSR checks)
- Higher Rates: Typically 1–2% p.a. above dealer finance
- Larger Deposits: Often require 20–30% deposit vs 10–15% dealer
5-Step Private Sale Finance Process – Timeframes & Pro Tips
Find Equipment & Negotiate Price
Timeframe: 1–4 weeks (depends on market availability)
Pro Tips:
- • Check Gumtree, eBay, Facebook Marketplace, local classifieds
- • Verify seller legitimacy (ABN lookup, phone verification)
- • Request service records, hours/odometer, recent inspection reports
- • Negotiate "subject to finance approval" clause in purchase agreement
Pre-Purchase Inspection & Valuation
Timeframe: 3–5 business days
Pro Tips:
- • Hire independent mechanic ($300–$800 depending on equipment type)
- • Lenders require recent valuation from accredited valuer ($250–$500)
- • Check PPSR register ($2–$4) to verify no existing finance/encumbrances
- • Budget 1–2% of equipment value for inspection/valuation costs
Submit Finance Application
Timeframe: Pre-approval in 24–48 hours (with complete docs)
Pro Tips:
- • Provide seller details upfront (name, ABN, contact info)
- • Include purchase agreement, inspection report, valuation
- • Ding Financial can pre-approve before purchase commitment
- • Some lenders require seller bank account verification (fraud prevention)
Final Approval & Settlement
Timeframe: 3–7 business days after pre-approval
Pro Tips:
- • Lender verifies seller identity and payment details (anti-fraud checks)
- • Funds paid directly to seller (not to buyer – security requirement)
- • Buyer deposits required amount (typically 20–30% for private sales)
- • PPSR registration completed at settlement (lender security interest)
Equipment Collection & Registration
Timeframe: Immediate after settlement
Pro Tips:
- • Arrange transport/collection logistics before settlement
- • Update insurance immediately (lender requirement)
- • Transfer registration if applicable (vehicles/plant)
- • Keep all paperwork for tax deduction claims (invoices, contracts, valuations)
Documents Checklist – What You Need for Private Sale Finance
Comprehensive list for full-doc applications. Low-doc options available (see Low-Doc Finance page).
Buyer Documents
- Last 2 years tax returns (business + personal)
- Recent BAS statements (last 2–4 quarters)
- Bank statements (3–6 months business + personal)
- Driver licence (photo ID verification)
- ABN/GST registration
- Proof of deposit funds (bank statement showing 20–30% available)
Equipment & Seller Documents
- Purchase agreement (signed by buyer + seller)
- Equipment details (make, model, year, serial/VIN, hours/odometer)
- Independent valuation (from accredited valuer – lender arranges or buyer provides)
- Pre-purchase inspection report (mechanic/engineer assessment)
- PPSR check (confirms no existing finance/encumbrances)
- Seller ID verification (driver licence, ABN lookup, bank account details)
- Service records (optional but helps approval – maintenance logs, recent repairs)
Important Note
Private sale finance requires significantly more documentation than dealer finance due to fraud prevention protocols. Missing any of the above can delay approval by 5–10 days. Ding Financial can guide you through the complete checklist.
Official ATO $20,000 Instant Asset Write-Off
Based on official Australian Taxation Office guidance - current for 2024-26 financial years
$20,000 Instant Asset Write-Off
Official ATO instant asset write-off for eligible second-hand equipment from private sales
Eligibility Requirements
- •Business aggregated turnover less than $10 million
- •Asset cost less than $20,000 (ex GST if registered)
- •First used or installed ready for use 1 July 2024 – 30 June 2025 (law) | 1 July 2025 – 30 June 2026 (announced)*
- •Using simplified depreciation rules
- •Both new and second-hand assets qualify
How It Works
- •Per-asset basis: Write off multiple assets under $20k each
- •Immediate deduction: Claim full business portion in year of purchase
- •GST treatment: Exclude GST if registered, include if not
- •Business use only: Only claim business portion (not private use)
Assets $20,000 or More
If your asset costs $20,000 or more, it goes into the small business simplified depreciation pool:
- • 15% deduction in the first year
- • 30% deduction each subsequent year
- • If pool balance falls below $20,000, write off the entire balance
Important Exclusions & Limits
Passenger vehicles limited to $69,674 for depreciation purposes (excludes motorcycles and disability-modified vehicles)
- • Assets leased out (>50% of time)
- • R&D assets (special rules apply)
- • Capital works & buildings
- • Horticultural plants
Practical Example
Purchase: Computer for $6,800 (80% business use)
Instant Write-Off: $5,440 (80% of $6,800) in the year of purchase
Total cost ($6,800) is below $20,000 threshold ✓
Business can claim $5,440 deduction immediately, not spread over multiple years
* Legislative Status: The $20,000 instant asset write-off for 2024-25 (1 July 2024 to 30 June 2025) is confirmed law. The extension for 2025-26 (1 July 2025 to 30 June 2026) has been announced by the government but is not yet legislated. While the government has committed to this extension, it requires parliamentary passage before becoming law.
Important: This information is based on ATO guidance current as of December 2024. Tax laws change regularly. Consult a registered tax agent or accountant to ensure your specific situation qualifies for the instant asset write-off. Record keeping requirements apply.
Frequently Asked Questions
Can I finance equipment from Gumtree or Facebook Marketplace?
Yes, most specialist lenders finance equipment from Gumtree, eBay, Facebook Marketplace, and other classifieds. However, seller verification is required (ID checks, bank account verification) which can add 2–3 days to approval. Ding Financial has relationships with lenders experienced in private marketplace purchases.
Are interest rates higher for private sale finance?
Typically yes – expect 1–2% p.a. higher than dealer finance (indicative range: 8–11% p.a. for private sales vs 6.5–9% dealer). This reflects additional verification costs and higher perceived risk. Strong credit profiles with 25%+ deposits can negotiate closer to dealer rates.
Do I need a bigger deposit for private sales?
Yes – most lenders require 20–30% deposits for private sales vs 10–15% for dealer purchases. This protects lenders against valuation discrepancies and equipment condition surprises. Some specialist lenders accept 15% deposits for newer equipment (under 5 years) with comprehensive inspection reports.
Who pays for the valuation and inspection?
Typically the buyer pays upfront ($500–$1,200 total for both). Some lenders deduct this from loan amount at settlement.Pro tip: Make purchase agreement "subject to satisfactory inspection and finance approval" so you can walk away if issues arise.
How long does private sale finance approval take?
Pre-approval: 24–48 hours with complete buyer documents.
Final approval: 5–10 business days (includes seller verification, equipment inspection, valuation).
Settlement: 1–3 business days after final approval.
Total timeframe: 7–14 business days from application to equipment collection.
What if the seller has finance owing on the equipment?
PPSR check will reveal this. Your lender can arrange a "three-way settlement" where:
1. Your lender pays out the seller existing finance directly
2. Remaining funds go to seller
3. PPSR security transfers to your lender
This is common and adds 2–3 days to settlement. Never accept equipment with undisclosed finance – you inherit the debt.
Can I still claim the $20,000 instant write-off on private sales?
Yes, private sale equipment qualifies for the same $20,000 instant asset write-off (if under $20k ex-GST and other ATO criteria met). Ensure you get a proper tax invoice from the seller (if they are GST registered) or receipt with seller details (if not registered). Consult your accountant and verify at ato.gov.au.
What if the equipment fails inspection?
If major issues are found (e.g., structural damage, undisclosed accident history), you can:
1. Renegotiate price with seller (factor in repair costs)
2. Walk away if purchase agreement was conditional
3. Proceed anyway (lender may reduce loan amount or decline)
Ding Financial recommends always including inspection contingency clauses in purchase agreements.
Are there any equipment types lenders won't finance privately?
Most lenders have restrictions on:
• Very old equipment (20+ years – some lenders won't touch it)
• Low-value items (under $5,000 – not economical for lender)
• Incomplete/damaged equipment (major repairs needed)
• Imported equipment (no local service/parts support)
Contact Ding Financial to check specific equipment eligibility.
Can I get private sale finance with bad credit?
Yes, but expect:
• Higher rates: 12–16% p.a. (vs 8–11% good credit)
• Larger deposits: 35–50% (vs 20–30% good credit)
• Stricter equipment criteria: Newer, higher-value equipment preferred
Specialist near-prime lenders assess on current income/cashflow rather than past credit issues. Contact Ding Financial for bad credit private sale options.
Who can I contact for private sale finance advice in NSW?
Contact Ding Financial (Australian Credit Licence 222640) for no-obligation quotes and advice.
📞 1300 DING FIN
🌐 www.ding.financial
Ding Financial specializes in private sale finance and can guide you through the complete process from Gumtree search to settlement.
Contact Ding Financial for Your Indicative Quote – No Obligation
Trusted by 150+ NSW contractors buying privately. Expert guidance from Gumtree search to settlement.