How to Finance Equipment Bought at Auction

Can you finance equipment bought at auction?

Yes. Auction equipment can be financed like any other used unit, but the auction house sets the clock, not your lender. Most platforms want full payment within two to seven days of the sale, so the financing has to be approved before you bid, not after you win.

The auction does not care where the money comes from, only that the invoice is paid on time. If your lender cannot fund by the deadline, you pay late fees or default penalties, or lose the unit.

How fast do you have to pay after winning an auction?

Fast. Purple Wave wants payment by the second business day, IronPlanet's FAQ says 3 business days, and Ritchie Bros. says 7 days. GovDeals deadlines are set by each selling agency. Here is what each platform's own pages said when we checked them.

The card limits matter. A $3,000 cap at Purple Wave or a $5,000 cap at GovDeals means a card will not cover a truck or an excavator. On a five or six figure unit at Purple Wave or GovDeals, you are paying by wire (or certified check at Purple Wave), and that money has to be in your account or sent by your lender in time.

How much will I owe on top of my winning bid?

More than the hammer price. Ritchie Bros. adds a tiered transaction fee and a documentation fee on titled items, and Purple Wave adds a 10% buyer's premium. Your financing has to cover the full invoice, not just the bid.

The table applies each platform's published fee rule to three example bids. It excludes sales tax, transport, inspection and storage. It assumes a titled item at a US Ritchie Bros. sale outside California and Orlando (RB lists $70 and $140 documentation fees there).

Ask your lender whether it finances the buyer's fees or only the bid. Lenders vary. If only the bid, the fees come out of your cash on top of your down payment.

Why should I get pre-approved before I bid?

Because a bid is a commitment you cannot take back, and the payment deadline is shorter than many approval and funding processes. IronPlanet's own FAQ says it directly: "Please ensure your financing is arranged prior to bidding."

Purple Wave's terms state that "Bids cannot be removed once a bid is placed," and its terms contain no financing contingency. Miss the deadline and you face the default fees in the table above. Lenders vary widely in how long approval, documents and funding take, so ask your lender for its timeline in writing and compare it to the auction's deadline before you register.

A useful pre-approval tells you three things:

• The maximum amount, and whether that covers the bid, the buyer's fees, or both.
• What the lender needs after you win, and how fast it can send a wire once it has those documents.
• Any limits on the unit: age, hours, mileage, equipment type, or whether the lender will finance an auction purchase at all.

Set your maximum bid by working backward. If you can spend $66,000 all in (before tax) at Purple Wave, your top bid is $60,000, because the 10% premium is added on top.

What does a lender need to finance an auction unit?

The lender needs to know exactly what it is lending against and who is being paid. Send the lot listing before the sale and the invoice the day you win.

• The lot listing: link, lot number, auction date, and the description as published.
• Identification: serial number or VIN, year, make, model, and hours or miles as listed.
• Condition evidence: listing photos and video, the platform's inspection report if there is one, and your own inspection notes.
• The invoice or buyer's certificate: bid, buyer's fees, taxes, and the payee and wire instructions.
• Title status: whether the unit is titled, who holds the title, and how the platform delivers it.
• The seller's identity: so the lender can run a lien search and confirm nothing is recorded against the unit.

Equipment-specific details help. For a vacuum or hydrovac truck, that means pump or blower hours and tank condition (see vacuum truck financing). For an excavator, it means machine hours and undercarriage notes. For a dump truck, it means VIN, mileage and body condition.

The "as is, where is" problem

Auction units are sold without a warranty. Purple Wave's terms say items are furnished "AS IS, UNSUPPORTED, WITHOUT WARRANTY OF ANY KIND" and that "It is the Buyer's responsibility to inspect Items prior to the auction." IronPlanet sells items without its IronClad Assurance as is, where is. Items with IronClad Assurance are sold against an independent inspection report, and buyers must report a mismatch within one business day of receiving the item (IronPlanet buyer FAQ).

Your lender is lending against the same unit, with the same risk. Expect condition questions, and be ready with the report or your own inspection. For what to check, use the used equipment buying checklist.

How do titles and liens work after an auction sale?

You pay first, and the title follows. Your lender usually needs to be recorded as lienholder, so plan for the gap between paying the invoice and holding the title.

Each platform handles this differently:

• IronPlanet: "Unless otherwise noted, IronPlanet will send the title to you within 15 business days after the close of the auction," by a trackable delivery service (IronPlanet buyer FAQ).
• Purple Wave: titles are "assigned and mailed out as soon as practicable following verification of payment" by USPS certified mail, and "Titles must be assigned to either an individual or company."
• GovDeals sellers: at Franklin County, Ohio, the agency completes its part of the title at pickup, the buyer completes the transfer, and "Open titles cannot be issued."

Tell the auction whether the title should be assigned to you as an individual or to your business, and make that match the name on your financing. Ask your lender how it handles the period before the title arrives, and send it the title, or a copy, as soon as you have it so the lien can be recorded. For equipment that is not titled, ask your lender what it needs instead; the bill of sale and the paid invoice are usually part of it.

Should I use Ritchie Bros. Financial Services or my own lender?

Either can work. Get quotes from more than one source and compare total cost, not just the monthly payment. Ritchie Bros. Financial Services is the auction house's own financing arm and describes itself as "an equipment-only lender." As of October 15, 2026, Ritchie Bros. states the following on its own pages:

• The payments page advertises "up to 100% financing, $0 and no payments for the first 120 days" (RB payments).
• The financing page says to "Skip the first four months of payments, then pay over terms up to 120 months," and notes that "Interest may accrue during the deferment period" (RB Financial Services).
• RB says "Full approvals are typically returned within 24 hours," lists "24 hr funding after approval," and says buyers can get approved "to buy at auctions, dealers, or private sellers."
• RB says it uses a soft credit pull for pre-qualification and a hard pull only on a full application.
• RB's conditions: "PurchaseFlex offer subject to credit approval. Not available in all jurisdictions. Terms and conditions apply. Not all buyers will qualify for the lowest APR or for financing."

If interest accrues during a deferral, the total you repay goes up. Ask every lender for the APR, term, down payment and total of payments.

An independent lender can make sense if you buy across several platforms or buy specialized trucks. Ironmark is not a lender. We connect buyers with third-party lenders, who make the credit decisions and set rates and terms. See what lenders look at before you apply.

What costs besides the bid should I budget for?

Transport, inspection, sales tax and storage if you are late. None of these are in the hammer price, and lenders vary on whether they finance any of them.

• Transport: IronPlanet's FAQ says you "will be responsible for the full cost of transportation payable directly to the company you hire." Get hauling quotes before you bid, especially for oversize loads.
• Inspection: an independent inspection before the sale costs money but is the only condition evidence you control. IronPlanet's FAQ says seeing equipment in person "is usually difficult to arrange."
• Sales tax: IronPlanet and Purple Wave both say the buyer pays applicable sales tax. Ask your CPA about exemptions that apply to your business.
• Storage after the removal deadline: Ritchie Bros. charges $25 per day for lots left past the deadline (RB buyer fees). IronPlanet requires removal within 8 business days, charges $25 per day starting on the 9th day, and may relocate units after 15 calendar days for the greater of 1% of the sale price or $250 (IronPlanet buyer fees). Franklin County, Ohio gives GovDeals buyers 10 business days to remove items (Franklin County FAQ).

A slow loan closing can cost you twice: late payment fees first, then storage because you could not pick up the unit until it was paid.

What are the steps to finance an auction purchase?

Get approved before the sale, bid inside the approval, and move the invoice to your lender the same day you win.

Before the auction

1. Shortlist lots and read each platform's terms: payment deadline, buyer fee, card limits, removal deadline and title delivery.
2. Apply for pre-approval. Ask for a maximum amount, the documents needed after you win, and a written funding timeline.
3. Send the lender the lot listings, serial numbers or VINs, photos and any inspection reports.
4. Inspect the unit, in person or through a third party, during the inspection period.
5. Get transport quotes and confirm the pickup location.
6. Set your maximum bid: approved amount minus buyer's fees, doc fees, and the down payment you are not financing.

During the auction

1. Bid only on units the lender has seen, and stop at your maximum bid.

After you win

1. Send the invoice or buyer's certificate to the lender the same day.
2. Sign the loan documents and provide anything else the lender asks for, such as proof of insurance.
3. Confirm the wire reached the auction's payee and the invoice is marked paid.
4. Schedule pickup inside the removal deadline.
5. Track the title and send it to the lender for lien recording.

What mistakes do buyers make when financing auction equipment?

The most common mistake is bidding first and calling a lender second. The others are mostly about fees and timing.

• No approval before bidding. A two to seven day deadline leaves little room for an application, documents and a wire.
• Forgetting the buyer's fee. A $60,000 winning bid is a $66,000 invoice at Purple Wave before tax.
• Counting on a credit card. Purple Wave caps cards at $3,000, and GovDeals requires a wire on invoices of $5,000 or more.
• Sending money too late. RB says US bank transfers take 4 business days to process, against a 7 day deadline.
• Skipping inspection. As-is means no warranty, and the lender is relying on your judgment too.
• Mismatched names. A title assigned to you personally while the loan is in your company's name creates paperwork you do not need.

Buying from a person instead of an auction? Read private party equipment financing.

Frequently asked questions

Can you finance equipment from GovDeals?

Yes, with your own lender. Each selling agency sets its own payment, removal and title terms, and GovDeals requires a wire on invoices of $5,000 or more, so the lender has to fund inside that agency's window.

Does Purple Wave offer financing?

Not that we could find. Its terms and conditions (last updated January 24, 2025) contain no financing language, so plan to bring your own lender. Payment is due by 4:00 p.m. on the second business day, the shortest deadline in our table.

Can I back out if my financing falls through?

Generally no. Purple Wave says bids cannot be removed once placed and charges a 15% default fee. IronPlanet charges default fees of $500 to $6,500 by price range. Ritchie Bros. charges a resale fee on unpaid lots.

What should I have ready for a quote?

Have the unit details and the auction's terms in one place. A lender can move faster when nothing is missing.

• Auction platform, lot number, listing link and sale date
• Payment deadline and removal deadline from the auction terms
• Your maximum bid, or the winning bid and invoice if you already won
• Buyer's fee and documentation fee for that platform
• Year, make, model, serial number or VIN, and hours or miles
• Photos, video and any inspection report
• Title status and the name the title will be assigned to
• Pickup location and your transport plan
• How much you plan to put down

Buying a truck or machine at auction? See dump truck financing, excavator financing, or browse all equipment types.