Buying equipment at auction or a clearing sale: have the money ready

Why does auction buying demand fast funding?

Because the auction sets the timetable, not you. Terms commonly require a deposit when the hammer falls and full payment within a few days. Miss the deadline and you can lose your deposit, the item and possibly face extra costs. Clearing sales on farms often work the same way, with payment expected on the day or very soon after.

That makes auctions one of the clearest cases for lining up funding in advance. Winning a bid without the money ready is a stressful way to find out how fast lenders really move.

What should I do before auction day?

1. Read the terms and conditions of sale. Note the deposit, payment deadline and accepted payment methods.
2. Inspect the item or get a trusted mechanic to look at it.
3. Set your maximum all-in price, including buyer’s premium, GST and transport.
4. Arrange funding up to that maximum, so you can bid with confidence.
5. Check the PPSR to make sure there’s no finance owing on the item.

The PPSR search costs very little and confirms whether a lender has a registered interest over the equipment. Auction houses usually deal with this, but private and clearing sales may not.

Which funding route suits which lot?

Lot	Route	Speed possible
Small tools, trailer, smaller machine	Unsecured business loan	Same day for smaller amounts
Truck, excavator, header	Property-secured loan	Same day for $20k–$250k
Multiple lots or a whole fleet	Property-secured loan	Up to $5m in 24–48 hours
Regular auction buyer	Line of credit	Immediate once set up

What does “all-in” price really mean?

The hammer price is only part of it. Add:

• Buyer’s premium, where charged
• GST, where the seller is registered (claimable on your BAS if you’re registered, but paid up front)
• Transport, which can be substantial for heavy machinery from a remote sale
• Any immediate repairs, registration or roadworthy costs

Illustrative example: a grain grower near Esperance wants a used header at a clearing sale. The maximum hammer price is $210,000, plus buyer’s premium and GST, and transport back to the farm. The all-in budget is about $250,000. The grower arranges a property-secured loan over the farmhouse before the sale, so funds can be released within the payment window if the bid succeeds.

How do I make sure the funds land in time?

Tell the specialist the sale date, the payment deadline and the auction house’s payment details. Have ID, bank statements and property details sent in advance, so only the final amount needs confirming once you’ve won. If the lot is large or the window is tight, start at least a few days before the sale.

Can the equipment itself be security?

Sometimes. Some lenders take security over equipment and register it on the PPSR. That can work well for newer, high-value machinery. For older gear or auction purchases, lending on turnover or property security is often quicker and simpler. Read more on fast equipment finance.

What about tax?

Your accountant can tell you how the purchase affects your tax, including depreciation and whether any concessions apply. Thresholds and rules change, so don’t assume last year’s rules still apply. Be ready to pay GST up front and claim it back on your next BAS.

Got a sale coming up? Start your 60-second enquiry and get funding lined up first.

Online auctions and timed sales

More and more equipment now sells through online and timed auctions, with bidding over days and payment due soon after the sale closes. The same rules apply: read the terms, arrange funding first and know your all-in price. Online sales add a few extra checks. Confirm who the seller is and how they’re registered, whether you can inspect the item in person or through an agent, and what the collection and transport arrangements are. For high-value lots, consider paying a local mechanic to inspect before you bid, because returns are rarely accepted.

If you buy regularly at auction, a standing line of credit is worth considering. It means you can bid with confidence and pay within the window without a fresh application each time. Talk to the specialist about how a facility might work for the way you buy.

After the hammer falls

Once you’ve won, send the invoice or sale confirmation through straight away, along with the payment instructions from the auction house. Confirm the amount is final, including buyer’s premium and GST, so the lender can release exactly the right figure.

See if you can bid with the money already sorted

There’s no credit check when you first enquire, so you can sort funding without it showing on your file. Your details aren’t scattered to a crowd of lenders. A real person reads your enquiry, notes the sale date and payment deadline, and calls with the quickest way to have funds ready.

Please give us your maximum all-in budget and any property you own on the form, so we can match you properly the first time. Check if you qualify.