Financing Used Farm Machinery in Canada

Which used farm machines may be considered?

This guide focuses on larger equipment bought after its first owner has used it:

• Combines and grain headers, including the equipment sold with the combine.
• Self-propelled and pull-type sprayers.
• Planters, seed drills and other seeding units.
• Round and square balers, forage harvesters and related hay machines.
• Tillage machines and grain carts when the purchase is large enough for the financing source.

See our agriculture equipment financing hub for related farm purchases.

Used tractors have their own tractor-financing guide. A used grain dryer or bin belongs in our grain handling guide. These are different assets, and their purchase questions should not be blended into one generic list.

What changes when a dealer sells the machine?

A dealer may provide a formal invoice, equipment identification, a condition report, the seller's legal details and a plan for delivery or service. Those details make it easier to describe what you are buying.

Some used units are on consignment. This means the dealer is helping another owner sell the machine. Before funding, the parties may need to confirm who owns the equipment, who signs the sale documents and where payment must go. Do not assume the dealer is always the registered owner.

If a dealer offers financing, compare it with any other available option. A Raymond Leigh review does not require the dealer or farm to abandon a current financing relationship. See our dealer-versus-private-sale guide.

Can you finance a combine or baler bought from a neighbour?

A private seller may have no dealer invoice, warranty or standardized inspection report. Ask for a written sale agreement with the legal names of buyer and seller, a clear list of equipment, make, model, serial number where applicable, price, and proposed payment date.

You should also ask how the seller can show ownership and whether a bank, Farm Credit Canada, caisse or other party has a registered security interest that must be addressed. The seller's possession of the equipment alone is not proof that it can be transferred free of claims.

A sale involving a parent or another related party can require extra valuation and documentation. For example, Canada's CALA guidelines address appraisals in certain related-party transactions. The exact requirements depend on the financing route. Do not assume a family purchase qualifies for any particular government-backed program.

Farm auctions: arrange the financing discussion before bidding

A timed online auction may close in minutes, but the purchase and financing work does not necessarily happen that fast. A sale may have a buyer's premium, tax, short payment window and removal deadline. These terms differ between auctioneers and events.

Before you place a bid, get the lot description, seller or auctioneer details, sale terms, equipment information, available inspection records and your estimated total cost, including fees and transport. Talk with a financing source beforehand to understand what it can review. Do not assume that Raymond Leigh can arrange approval or funds before a specific auction deadline.

The auction may not let you change your mind because financing takes longer than expected. Read its current terms. Farm Credit Canada's guidance on online auctions also recommends preparing before the sale.

What about a farm retirement or dispersal sale?

A retirement or dispersal sale may include several different machines, each with different age, condition and ownership records. Buying a combine, planter and sprayer as one package does not make them one physical asset.

Build a simple equipment schedule with each machine and its proposed price. Ask whether the auctioneer or seller can provide the individual serial numbers and sale documents. If some assets are consigned and others belong to the retiring farm, identify that difference before the money changes hands.

Why machine condition matters more than the listing headline

A low asking price can be misleading if major work is due. For a combine, ask about engine and separator hours, the header, service records and known repairs. For a sprayer, ask about boom condition, pump, tanks and control system. For a baler, consider wear in the pickup, belts, chains and tying system. For a planter or seed drill, ask about row units, meters, wear parts and electronic controls.

These are purchase-diligence questions, not a universal lender checklist. A financing source may ask for photos, a third-party appraisal, a condition report or other proof depending on the machine and file. An inspection protects the buyer even where it isn't a financing condition.

What about existing liens and secured loans?

A business can sell machinery that still has debt against it, but the transaction needs a clear plan for any security interest that affects the sale. The buyer should not simply transfer the full price and hope the seller pays the old lender afterward.

In Ontario, the Personal Property Security Act registration system may be relevant to a secured equipment sale. In Quebec, the Register of Personal and Movable Real Rights (RDPRM) records certain movable-property rights and security. A Quebec search is generally made by the name of the person or business that granted the rights, and certain road vehicles are also searched by their identification number. The right searches and discharge process depend on the parties and transaction; obtain legal help when needed.

This is general purchase guidance, not legal advice. See the PPSA and equipment-lien guide for a broader explanation.

Buying from the United States or leasing a used machine

Cross-border purchases can involve import, shipping, registration and seller checks beyond a domestic transaction. Our tractor-financing guide contains the agricultural import discussion; do not assume the same requirements apply to every machine without checking.

An equipment loan and a lease can also produce different ownership and end-of-term outcomes. Read the equipment loan-versus-lease guide. For the farm-specific decision, see our farm equipment leasing guide, including what happens at the end of the agreement.

What if your bank or the dealer's lender declined the request?

One lender's decision does not mean every financing source applies the same criteria. Some may consider different equipment types or borrower circumstances. But some lenders will not review an already-declined file, and an alternative approval is not guaranteed.

Share the reason for the decline if you know it, along with the farm's debt position, cash-flow information and the proposed machine purchase. Read what to consider after a bank decline.

What should a farm prepare for a financing review?

Start with the purchase agreement, listing or invoice; full legal seller details; equipment make/model/year and serial numbers; price; available photos and service records; seller or auction terms; deposit and payment schedule; and a description of how the machine will be used.

A lender may also ask for financial statements, existing debt details and more information on the farm. Raymond Leigh reviews the transaction and looks for relevant financing partners. It does not automatically send the file to all 40-plus partners. The lender makes the credit decision and sets the final terms.

For a used equipment purchase, send the quote or listing and your project details before making a commitment that depends on financing.

Used farm machinery financing: common questions

Can I finance a used combine bought privately?

Possibly. The financing source may need ownership, condition, value and seller information in addition to the farm's finances. Private sales can need more checks than dealer sales.

Is there a maximum age or hour limit?

There is no single age or hour rule shared by all lenders. Eligibility varies with the asset and the lender's criteria.

Does an auction purchase require money immediately?

Every auction has its own payment terms. Read the exact sale conditions before bidding and do not assume financing can be arranged after the hammer falls.

Can the buyer's premium, moving or repairs be included?

That depends on the lender and the transaction. Show each cost separately rather than assuming it can all be financed.

Can I buy equipment from a retiring parent?

Potentially, but related-party purchases may require an appraisal and additional legal or financing documents. The financing route and the sale structure must be reviewed.