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New vs used asset finance: what changes for your business
Reviewed by Luca Scalzo, Director, WFYA Limited · Last reviewed
Both new and used assets can be financed, but they are treated differently. A used asset costs less and loses value more slowly, while a new asset usually gets longer terms, a warranty and access to some tax reliefs that only apply to new equipment. Lenders also set a maximum age for the asset at the end of the agreement, which limits the term on older used assets.
How do new and used asset finance compare?
| New asset | Used asset | |
|---|---|---|
| Price | Higher | Lower for the same model |
| Depreciation | Fastest in the first years | Slower |
| Term available | Often longer, up to the asset's expected working life | Often shorter, limited by the lender's maximum age at the end of the agreement |
| Deposit | Depends on lender and business | Can be higher for older or specialist assets |
| Checks by the lender | Supplier quote and invoice | Also age, hours or mileage, condition, service history; sometimes an inspection or valuation |
| Warranty | Manufacturer warranty | Limited or none, unless from a dealer |
| Tax reliefs | Some reliefs, such as full expensing and other first-year allowances, apply only to new and unused plant and machinery | Annual Investment Allowance can apply to used plant and machinery |
Tax reliefs depend on your business type and the asset: check the current rules with your accountant.
When does new make sense?
- You will keep the asset for most of its working life.
- Reliability and warranty matter more than price.
- Your business can use reliefs that apply only to new plant and machinery.
When does used make sense?
- You want a lower price and slower depreciation.
- A proven model with a good service history does the job.
- You need the asset quickly and stock of new models is limited.
Sources
Checked on 31 October 2026.
Frequently asked questions
Is it harder to get finance on a used asset?
Not necessarily, but lenders look harder at the asset itself. Age, condition and resale value matter, and very old or specialist assets have fewer lenders.
How old can a used asset be?
Each lender sets its own limit on the age of the asset at the end of the agreement, which also depends on the type of asset. We will tell you what applies to yours.
Do used assets need a bigger deposit?
Sometimes, especially for older or specialist assets. It depends on the lender's view of the asset's value.
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