7 Pro Tips for Buying Equipment from a Private Party Seller

7 Pro Tips for Buying Equipment from a Private Party Seller

Let’s be honest — buying equipment from a private party can feel like a Craigslist gamble. One day you’re scoring a great deal on a used backhoe, the next you’re explaining to your accountant why a guy named “Big Mike” disappeared with your money and the machine.

But done right, private party purchases can offer real savings and solid equipment. The key is knowing how to spot red flags, verify ownership, and protect yourself before money changes hands.

Here are 7 tips to help you navigate private party equipment purchases safely and confidently:

1. Verify Ownership — Not Just the Story

For titled equipment like trucks or trailers, ask to see the title and match the name to the seller’s ID.

But many types of equipment — like excavators, skid steers, or attachments — don’t have titles. In those cases, you’ll need documentation of ownership, such as:

The original invoice or bill of sale

A financing contract or payoff letter

Equipment schedules from a lease or loan

Anything that proves they legally acquired the equipment

Why does this matter? Because private sellers aren’t guaranteed under the Uniform Commercial Code (UCC) to pass clear title. If they don’t truly own the equipment, the actual legal owner could come after you to repossess it — even after you’ve paid in full. Bottom line: don’t rely on someone’s word. Get proof.

2. Ask for Maintenance Records

A good seller will have something to show the equipment was taken care of — even if it’s just handwritten logs or repair receipts.

Look for:

Service logs

Receipts for oil changes, parts, or major repairs

Notes on recent upgrades

Consistent maintenance often means fewer surprises down the road.

3. Check for Active Liens — Especially Blanket Liens

Even if the seller gives you an invoice or shows you the title, that doesn’t mean the equipment is free and clear.

Run a UCC search through the Secretary of State where the seller is located. This will show if there are any active lien filings tied to the seller’s name or business.

Pay special attention to:

Specific liens, tied to a certain serial-numbered asset

Blanket liens, which cover all equipment owned by the debtor, even if the specific machine isn’t listed

If there’s a lien, the lender still has legal rights — and can potentially repossess the equipment if the debt isn’t settled. Before you buy, make sure the lien has been paid off or you have a clear release in writing.

4. Inspect It Like a Pro

Never skip an inspection. Either visit in person or hire a qualified technician to inspect the equipment.

Look for:

Signs of heavy wear or abuse

Leaks or rust

Structural damage or frame cracks

Mismatched or repainted parts

Photos can hide a lot — a good inspection can save you thousands in repairs.

5. Run Comparable Values

Check listings on sites like Machinery Trader, Ritchie Bros, or IronPlanet to compare prices for similar equipment. If the price is way below market, ask why.

Sometimes it’s just a good deal. Other times, it’s a sign of hidden issues — or worse, a sale by someone who doesn’t own the equipment at all.

6. Document the Sale Properly

Always create a bill of sale that includes:

Buyer and seller names and contact info

Equipment details (make, model, year, serial/VIN)

Purchase price and date

Any terms or conditions (as-is sale, deposits, warranties, etc.)

This protects both parties and will likely be needed for titling, insurance, or financing.

7. Don’t Rely Solely on Your Lender — Do Your Own Due Diligence

Some lenders — like us — may assist with verifying ownership, checking for liens, or confirming serial numbers. But don’t assume they’re handling everything for you.

It’s not your lender’s job to protect you from a bad deal. Ultimately, you are responsible for:

Confirming the seller truly owns the equipment

Investigating liens or debts attached to it

Doing a thorough inspection

Verifying paperwork is legitimate and complete

Think of your lender as a helpful backstop — not a bodyguard. There’s no substitute for doing your own due diligence.

Final Thoughts

Buying equipment from a private party can be a great way to save money — but it also comes with more risk. By asking the right questions, verifying ownership, and doing your homework, you can protect yourself and walk away with a smart investment.

Got a private party deal in the works? We’re here to help make it safe, secure, and fundable. Contact SLS to get started.