Financing a major purchase can be simple when you have the right information. Know what lenders look for, and you'll be more likely to secure competitive rates and favorable terms. Wagner Used Equipment has served contractors and businesses since 1976. We offer guidance and flexible financing for used heavy equipment to help you grow your fleet. To get started, apply for financing or contact our team for more information.
3 Steps to Determining a Fair Used Equipment Value
Getting the value right matters. It determines your loan amount, interest rates and down payment. Lenders assess this value to determine the collateral's worth, influencing the loan amount, interest rates and down payment. For buyers, fair market value ensures fair financing, prevents overpaying and secures favorable terms.1. Start With Auction Results and Market Data
Auction results and market information give you a reliable baseline. Our sales team uses this same data to price our inventory, ensuring a fair starting point. Specific information we may look at includes the region where equipment sold, the time of year, whether it was an online or in-person auction and how quickly items moved. If similar equipment consistently sells well, it signals strong demand and tight supply, driving up value. Auction and market information is objective, unbiased and realistic.2. Factor in Hours, Condition and Maintenance History
Equipment condition changes the baseline value, but keep in mind that there is a difference between engine hours and frame hours. Engine hours indicate the total operational time of the machine's engine, reflecting wear on its powertrain components. Frame hours represent the overall time the machine has been in service, highlighting the structural and chassis wear. Both metrics are important because engine hours assess internal component longevity, while frame hours provide insight into the machine's overall structural integrity and cumulative workload. In addition, a machine with a documented service history from a reputable dealer often holds higher value and can be easier to finance.3. Account for Transportation and Prep Costs
Factor in logistics and prep work when determining total cost. Ready-to-work equipment costs more than machines needing significant prep time, but that premium is worth it if you can be productive right away. For example, you can compare the cost of buying a cheaper machine and paying for the repairs and transportation separately, versus the lost productivity and time spent managing those processes.What Makes Financing for Used Heavy Equipment Different?
New equipment financing is straightforward since there is predictable value, manufacturer warranties and clear depreciation schedules. Used equipment is a different story. Lenders have to factor in condition, remaining useful life and how the market values it. That's why you'll see higher interest rates, shorter terms and stricter age limits. But financing used equipment is smart if it lowers your up-front costs and gets you to a positive ROI faster.What Lenders Look for in an Application
Lenders review a few key areas to determine eligibility, including:- Financial health: Show positive cash flow and a solid credit history. While there's no single magic credit score, a strong one always helps.
- Application documents: Include recent business bank statements, company information and the specs of the machine you're buying.
- Clear business justification: Highlight the intended commercial use of the equipment and how it contributes to your business's operational needs and revenue generation.
