Buying Equipment Privately: Checks Before You Pay

• If the seller is an individual, ask for their full name. If the seller is a business, ask for their ABN and ACN and check them on ABN Lookup (abr.business.gov.au).
• Ask for proof of ownership, such as the original tax invoice or purchase records, and check the seller's name matches it.
• Confirm whoever signs the sale paperwork actually has authority to sell. For a company, that is a director or someone with documented authority. See buying from a company, trust or estate.
• Check whether the equipment is leased or on hire purchase. Equipment on lease or hire purchase may still belong to the financier until the final payment, so the seller may not be able to sell it without the financier's agreement. See when the seller still owes finance.
• Match the serial or identification plate on the equipment to the paperwork and the invoice, and take a photo of the plate.

The Personal Property Securities Register (PPSR) is where lenders register their security over assets. If finance is still owing on the equipment and you don't check, you could inherit the problem.

• Machinery and equipment are generally non-serial-numbered goods, so you search by the grantor (usually the seller), not by serial number. PPSR: serial-numbered vs non-serial-numbered search
• For a company, search by its ACN. For an individual (including a sole trader), search by their full name and date of birth as shown on their driver's licence, so ask the seller for these. PPSR: tips for a grantor search
• Only motor vehicles, watercraft, aircraft and some intellectual property are searched by serial number. Some motorised equipment (for example some excavators, harvesters and backhoes) and towed items may meet the “motor vehicle” definition and be searchable by VIN or chassis number. If you're unsure, do both searches or ask us.
• Searching with the wrong details can miss a registration. If that happens, the goods can be at risk of repossession even after you have paid. The two PPSR pages linked above explain how to choose the right search.
• A business can have a general security interest registered over everything it owns (often called an AllPAAP, “all present and after-acquired property”). It shows up on a search against the business's ACN, not against the item. See buying from a company, trust or estate.
• If something is registered, ask the seller for a written payout letter or a release before you pay, and make sure the payout happens at settlement. Keep a copy of your search result with your purchase paperwork.

You can search at ppsr.gov.au. At the time of writing the PPSR lists a search at about $2; check the PPSR site for the current fee.

• Inspect and test the equipment before you pay. Ask for the service history and any hours or odometer records, and check them against the condition of the equipment.
• Consider an independent inspection before you pay, especially for anything expensive, specialised or hard to test.
• List the attachments, accessories and keys that are included in the sale, and have them written on the invoice.

• Get a written sale agreement or bill of sale showing the seller's details, the serial or identification number, what is included and the price.
• If the seller is registered for GST, ask for a proper tax invoice, not a handwritten receipt. GST and tax treatment depend on your circumstances, so speak to your accountant.
• Items that are registered or plated (for example trailers and some plant) may have state transfer rules. We don't explain the process here; see the transfer details in our car guide for your state: New South Wales, Victoria, Queensland, South Australia, Western Australia, Tasmania, the Australian Capital Territory, the Northern Territory.

• Pay by traceable bank transfer into an account in the seller's name. Never pay in full upfront by an unsafe method, and don't pay a deposit before the checks are done.
• Be wary of cash, gift cards, crypto, or payment links the seller sends you.
• Scam warning signs: pressure to pay quickly, a price far below market, a seller who won't let you inspect the equipment, bank details that change at the last minute, a seller who won't give a payout letter, or a “freight agent” who asks for payment before you've seen the item.

Some lenders do finance private sales, usually with additional checks. All finance is subject to lender approval, fees and charges. What lenders commonly ask for varies by lender, but often includes:

• An invoice or contract of sale showing the seller's details, the serial or identification number and the price
• Evidence of ownership, such as the seller's original purchase invoice
• The seller's ABN or ACN, and a clear PPSR search
• For older or specialised equipment, sometimes a valuation or inspection
• A written payout letter or a release for any finance owing on the equipment
• For a trust or deceased estate, the documents showing who can sell

Equipment is often sold with finance still owing. It can be done safely as long as the debt is paid out as part of the sale, not “sorted out later”.

• The seller asks their financier for a written payout letter. Check it is current on the day you settle.
• At settlement, the payout amount goes directly to the seller's financier and the balance goes to the seller. If you're using finance, your lender usually arranges this.
• If you're paying yourself, confirm the financier's payment details by calling a number you've looked up yourself, not one from the seller or the letter.
• Ask the financier to confirm in writing that the registration will be removed, and keep a copy.
• If the payout is higher than the price, agree how the seller will cover the difference before you go further.

The same principle applies to cars: see when the seller still owes finance.

• Paying a deposit before the PPSR check. Check first, then commit.
• Taking the seller's word that it's paid off. Ask for the search result and, if needed, a payout letter.
• Searching only by serial number. Machinery and equipment are generally searched by the seller's details, not the serial number.
• Skipping the inspection. Condition and hours matter as much as the price.
• Leaving finance until after you've agreed to buy. Talk to us first so the paperwork can be checked against what a lender may ask for.

• Equipment and asset finance
• Chattel mortgage: how it works
• Ute and work vehicle finance for tradies
• Chattel mortgage calculator
• Selling equipment privately
• Buying from a business, trust, estate or lease
• When the seller still owes finance
• Private Sale Guide: cars, checklist and stamp duty estimator