The Ultimate Guide to Equipment Finance for Vehicle Wholesalers

The Ultimate Guide to Equipment Finance for Vehicle Wholesalers with Emu MoneyThe Ultimate Guide to Equipment Finance for Vehicle Wholesalers with Emu Money

Equipmnt financ is an essntl prt of runnng a succsful vehcl wholeslng bsiness in Australa. As a vehcl wholesaler, havng th right quipmnt on hand is crcial. It allows you to efficiently manag yur nventory, maintan or upgrde your fleet, and connct wth dlers and custmers who requre a wide varity of vehcles. Bsiness quipmnt financ provdes the necessary fnancial asstnce to acquire thos necessry asssts without puttng a strn on your cash flow. Vhicle wholesalng is a compettve ndustry, and havng th ltest modls n your invntory can mak all th diffrnc. By utilzing quipmnt financng, you cn kpn your stock up to date and hav th ability to constantly update and improv th qualty of your offrg. Whether it's spcalz tools, lftng dvics, or compuerizd systms, th rght equmpnt raises yur business's profilen and can lver significant advantage over your compitors. Bsns quipmnt fnanc also ffrs the benefit of prdctability and flexibility in your budgetng. Instead of tying up your working capital by purchasing equpment outright, you cn sprad th cost over an agrd-upon prid. This hps you maintain a stronger cash flow, whil ltting you focus on othr areas of your busness, such as marketing and sals. In the nxt sections of this artcl, w will xplor business quipmnt finnce in mre dtail, incluing th varous typs of fincng options availble to vehicls wholesalrs in Australia. W'l also discuss hwo to uilize an equipmnt finnce calculator to assst in your decision-makng process. So let's dive in an explore how equipment finance can support the success of vehicle wholesalers in Australia.

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What is Equipment Finance?

Equipment finance is a financing option designed specifically for vehicle wholesalers in Australia. It enables wholesalers to acquire the necessary equipment for their business operations without having to bear the full cost upfront. This type of finance allows wholesalers to access funds for purchasing a wide range of equipment, including specialised tools, vehicles, machinery, and technology systems. The process of equipment finance involves working with a finance provider who specialises in this type of lending. Wholesalers can choose from various financing options, such as leasing or equipment loans, depending on their specific needs and preferences. Leasing is a common form of equipment finance where the wholesaler enters into an agreement with the finance provider to lease the equipment for a specified period. During the lease term, the wholesaler pays regular lease payments, usually on a monthly basis, to retain the use of the equipment. At the end of the lease term, wholesalers may have the option to purchase the equipment, return it, or renew the lease. On the other hand, equipment loans allow wholesalers to borrow funds to purchase equipment outright. The loan amount is typically repaid over a fixed term through regular instalments. Once the loan is fully repaid, the wholesaler owns the equipment outright. Equipment finance offers flexibility in terms of repayment options, as well as potential tax benefits for businesses. It helps vehicle wholesalers manage their cash flow effectively by spreading the cost of acquiring equipment over a period of time. This allows them to free up working capital and allocate funds towards other business needs.

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Top 10 Types of Equipment Vehicle Wholesalers Can Purchase With Equipment Finance

Vehicle Wholesalers can use equipment finance to acquire essential assets such as vehicles, forklifts, and diagnostic tools. These resources enable efficient transport, handling, and maintenance of inventory, ensuring smooth operations and optimal vehicle quality for customers.

Here are some common types of equipment Vehicle Wholesalers can purchase with equipment finance:


Vehicles are a vital asset for vehicle wholesalers. Whether it's vans, trucks, or car carriers, having the right vehicles is essential for transporting inventory efficiently.


Forklifts are indispensable for vehicle wholesalers, especially when it comes to loading and unloading vehicles in the warehouse. They provide the necessary lifting and manoeuvreing capabilities.

Car Lifts

Car lifts are essential for vehicle wholesalers to inspect, maintain, and repair vehicles. They enable easy access to the underside of vehicles, making routine maintenance tasks more convenient.

Diagnostic Tools

Diagnostic tools are crucial for vehicle wholesalers to diagnose and troubleshoot vehicle issues accurately. These tools help identify underlying problems, ensuring that vehicles are in optimal condition before being sold.

Computer Systems

Computer systems are an integral part of vehicle wholesaling operations. They enable wholesalers to manage inventory, track sales, handle documentation, and communicate effectively with customers.

Vehicle Detailing Equipment

Vehicle detailing equipment, such as pressure washers, vacuums, and polishing machines, helps vehicle wholesalers maintain the cleanliness and appearance of vehicles, enhancing their marketability.

GPS Tracking Systems

GPS tracking systems allow vehicle wholesalers to monitor the location and movement of their fleet vehicles. This helps in ensuring efficient logistics and enhances security measures.

Lifting Equipment

Lifting equipment, such as hoists and cranes, are indispensable for vehicle wholesalers when it comes to handling heavy components or performing tasks that require elevated access.

Warehouse Shelving Systems

Warehouse shelving systems are essential for organising and storing vehicle inventory efficiently. They optimise warehouse space and streamline inventory management processes.

Vehicle Advertising and Marketing Equipment

Advertising and marketing equipment, including signage, graphic design tools, and printing equipment, assist vehicle wholesalers in promoting their inventory effectively and attracting potential buyers.

Top 10 Ways Vehicle Wholesalers Use Equipment Finance For Growth

Vehicle Wholesalers can leverage equipment finance to fuel their growth by expanding their vehicle fleet, upgrading technology systems, implementing diagnostic equipment, improving warehouse infrastructure, enhancing marketing capabilities, and investing in employee training and development, among other strategies. This allows wholesalers to optimise operations, enhance service offerings, increase brand visibility, and stay competitive in the market.

Here are some common reasons Vehicle Wholesalers use equipment finance for growth:

Expanding Vehicle Fleet

Vehicle wholesalers can use equipment finance to acquire additional vehicles, allowing them to expand their inventory and reach a wider customer base.

Upgrading Technology Systems

With equipment finance, wholesalers can invest in advanced technology systems to enhance operational efficiency, such as inventory management software, customer relationship management (CRM) tools, and sales tracking systems.

Implementing Diagnostic Equipment

Investing in diagnostic equipment enables wholesalers to accurately assess the condition of vehicles, improving transparency and customer trust during the sales process.

Improving Warehouse Infrastructure

Equipment finance can be utilised to enhance warehouse infrastructure by instaling efficient shelving systems, implementing proper lighting, and upgrading security systems to protect valuable inventory.

Enhancing Vehicle Detailing Facilities

Wholesalers can use equipment finance to set up or upgrade vehicle detailing facilities, acquiring professional-grade equipment for cleaning, polishing, and maintaining vehicles to ensure they are showroom-ready.

Developing Marketing and Advertising Capabilities

With equipment finance, wholesalers can invest in marketing and advertising tools, such as signage, promotional materials, and digital marketing platforms, to increase brand visibility and attract more customers.

Training and Development Programs

Vehicle wholesalers can use equipment finance to fund employee training and development programmes, enhancing the skills and expertise of their workforce to deliver exceptional customer service.

Expanding Service and Maintenance Capabilities

Equipment finance enables wholesalers to invest in service and maintenance equipment, such as car lifts, diagnostic tools, and workshop machinery, allowing them to offer comprehensive vehicle services to customers.

Streamlining Logistics Operations

Wholesalers can use equipment finance to acquire GPS tracking systems, fleet management software, and fuel-efficient vehicles, optimising logistics operations and reducing costs associated with transport.

Investing in Research and Development

Equipment finance can be utilised to fund research and development activities, enabling wholesalers to stay ahead of industry trends, explore innovative technologies, and develop customised solutions that meet customer demands.

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Advantages of Equipment Finance for Vehicle Wholesalers

Equipment finance for Vehicle Wholesalers in Australia brings several advantages, enabling them to secure the necessary equipment for their operations. Here are some of the advantages:

Increase in Production Capacity

With equipment finance, Vehicle Wholesalers in Australia can acquire the necessary tools and machinery to expand their operations and increase their production capacity. This includes vehicles such as trucks, vans, and forklifts, as well as specialised equipment like car lifts and diagnostic tools. By having access to a wider range of equipment, wholesalers can efficiently manage their inventory and meet the demands of their customers.

Competitive Edge

Vehicle Wholesalers in Australia who utilise equipment finance gain a competitive edge in the market. By having the latest and most advanced equipment, wholesalers can offer superior services, streamline their processes, and stay ahead of their competitors. Whether it's cutting-edge technology for vehicle diagnostics, advanced software for inventory management, or specialised tools for vehicle customisation, equipment finance enables wholesalers to stay relevant in the fast-paced automotive industry.

Flexibility and Cash Flow Management

Equipment finance provides Vehicle Wholesalers in Australia with flexible payment options, allowing them to manage their cash flow more effectively. Instead of making large upfront purchases, wholesalers can opt for lease or hire purchase agreements, spreading the cost over a set period. This relieves the burden of heavy upfront expenses and allows wholesalers to allocate their funds towards other essential business activities, such as marketing, staff training, and expansion.

Improved Maintenance and Upgrades

With equipment finance, Vehicle Wholesalers in Australia can ensure the proper maintenance and regular upgrades of their equipment. The finance arrangements often include maintenance packages, minimising downtime and maximising productivity. Additionally, wholesalers can easily upgrade their equipment as technology advances or their business needs evolve. This ensures that wholesalers have access to reliable and efficient machinery, minimising disruptions and enhancing the overall operational efficiency of their business.

Disadvantages of Equipment Finance for Vehicle Wholesalers

When considering equipment finance for Vehicle Wholesalers in Australia, it's important to be mindful of a few considerations. Here are a few potential disadvantages to think about:

Financial Commitment

Equipment finance requires Vehicle Wholesalers in Australia to commit to long-term financial obligations. While this allows access to necessary equipment without a large upfront cost, it does mean entering into a financial agreement that may span several years. Wholesalers need to carefully consider their financial stability and projected cash flow to ensure they can meet the regular payments.

Limited Flexibility

Equipment finance agreements typically come with specific terms and conditions, including restrictions on equipment usage and maintenance requirements. Vehicle Wholesalers may face limitations in terms of customising or modifying the financed equipment to suit their unique business needs. It's important to thoroughly review the terms of the finance agreement to ensure it aligns with the intended use and operational requirements.

Depreciation and Resale Value

As with any equipment, financed vehicles and machinery will experience depreciation over time. This can impact the resale value of the equipment if the wholesaler decides to upgrade or sell it in the future. It's crucial to assess the expected depreciation rate and evaluate the potential impact on long-term investment returns.

Potential Obsolescence

In fast-evolving industries like the automotive sector, technology advancements and changing market demands can render equipment obsolete sooner than expected. Vehicle Wholesalers need to carefully evaluate the anticipated lifespan of the financed equipment and consider how future innovations may impact its relevance and usability. Some pre-planning and research can help ensure that financed equipment remains competitive and advantageous in the long run.

Equipment Financing Alternatives for Vehicle Wholesalers

Vehicle Wholesalers in Australia have a range of alternatives to traditional equipment finance. These include lease agreements for temporary equipment use, hire purchase options for gradual ownership transfer, equipment rental for short-term needs, and equipment sharing or co-ownership with other businesses. These alternatives offer flexibility and tailored solutions to meet the specific requirements and financial considerations of wholesalers.

Here are some common alternatives to equipment finance:

Lease Agreements

Lease agreements provide Vehicle Wholesalers with the option to use equipment for a specific period, paying regular lease payments. This allows wholesalers to access the equipment they need without the burden of ownership. At the end of the lease term, they can choose to return the equipment, upgrade to newer models, or negotiate an extension.

Hire Purchase

With hire purchase agreements, wholesalers agree to pay for the equipment over time while having the advantage of ownership. This option allows gradual ownership transfer as instalment payments are made. Once the final payment is complete, the wholesaler becomes the outright owner of the equipment.

Equipment Rental

Vehicle Wholesalers can opt for equipment rental services, which provide temporary access to needed equipment without the long-term commitment of ownership or financing. This option is ideal for short-term projects or seasonal needs, allowing wholesalers to pay for equipment usage on a rental basis.

Equipment Sharing or Co-Ownership

Some Vehicle Wholesalers may consider partnering with other businesses or industry peers to share the costs and benefits of acquiring equipment. By pooling resources and sharing ownership responsibilities, wholesalers can access necessary equipment while reducing individual financial burdens.

Equipment Finance Repayment Calculator

To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.

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Frequently Asked Questions

Still have questions about equipment finance?

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

What is the interest rate on equipment finance
Can I finance used equipment?
What is the typical term for equipment finance?
Do I need to provide a down payment?
Can I get equipment finance with bad credit?
Are there any tax benefits to equipment finance?
Can I pay off my equipment loan early?
Can I lease equipment instead of buying?
What is the difference between a lease and a loan?
What happens if the equipment breaks down?
Can I refinance equipment finance?
Is equipment insurance required?
Do I need a good business credit score for equipment financing?
Can I include installation, maintenance, and other costs in my loan?