Quick answer
Used commercial kitchen equipment can be excellent value, but check it carefully before paying: age and service history, how it was used, parts and technician availability, whether it suits your gas, power and water supply, and whether a licensed trade can install it compliantly. Search the Personal Property Securities Register for any security interest. Budget for installation and a service, and match any finance to its remaining life.
Key points
- Ask for service records and see the equipment running if you can.
- Check it suits your site's gas type, power supply and space before buying.
- Search the PPSR so you don't buy something a lender still has an interest in.
- In most cases, second-hand assets are eligible for the instant asset write-off (ATO).
When a restaurant closes, its kitchen doesn’t disappear. The combi oven, the six-burner range, the dishwasher and the cool room panels often end up with dealers, at auction or listed online, sometimes at a fraction of their new price. For a café or restaurant watching every dollar, used equipment can be a smart buy. It can also be an expensive lesson if you don’t check it properly. This checklist covers what to look for before you pay.
Why buy used?
- Price: used equipment can cost far less than new.
- Availability: sometimes you can have it this week instead of waiting for an import.
- Build quality: good commercial equipment is designed to be serviced and rebuilt.
- Tax: the ATO says second-hand assets are generally eligible for the $20,000 instant asset write-off, in most cases.
The trade-offs are shorter remaining life, possibly no warranty, and the risk of hidden faults or unsuitability for your site.
The checklist
1. Age, history and how it was used
- How old is it? Manufacturers’ serial plates usually show a date or can be decoded.
- Is there a service history? Ask for invoices or a service log.
- What kind of venue used it, and how hard? A combi oven from a 24-hour kitchen has had a very different life from one in a café that did lunches.
- Why is it being sold? A venue closure or upgrade is reassuring; a vague answer is not.
2. See it working
If at all possible, see the equipment running: ovens reaching temperature, burners lighting evenly, fridges pulling down to temperature, dishwashers completing a cycle. If you can’t, ask a technician to inspect it, or ask the seller what guarantee they’ll give.
3. Will it suit your site?
This is where many used purchases go wrong.
| Check | Why |
|---|---|
| Gas type | Natural gas and LPG equipment are set up differently; conversion may be needed |
| Power | Three-phase versus single-phase, and whether your supply can handle the load |
| Water and drainage | Combi ovens, dishwashers and espresso machines need the right connections and sometimes water treatment |
| Size and access | Will it fit through your door, on your floor and under your canopy? |
| Extraction | New cooking equipment may affect your exhaust requirements |
Have a licensed gas fitter, electrician or plumber confirm the equipment can be installed safely and compliantly at your site before you buy.
4. Parts and service support
- Is the brand still supported in Australia?
- Are parts readily available?
- Is there a qualified technician near you?
A great oven with no local technician can be out of action for weeks when something fails.
5. Check for security interests
The Personal Property Securities Register (PPSR) records security interests over personal property, including business equipment. If the seller financed the equipment and still owes money, a lender may have registered an interest. Buying it without checking could leave you with equipment a lender has rights to. Business.gov.au includes checking debts registered on the PPSR in its due diligence steps for buying a business, and the same logic applies to significant equipment purchases.
6. Get the paperwork right
- A tax invoice showing GST if the seller is registered, so you can claim the GST credit.
- A clear description including make, model and serial number.
- Any warranty or guarantee in writing.
- Confirmation of who pays for removal, transport and disposal of packaging.
7. Budget beyond the price
The purchase price is just the start. Add:
- Removal and transport, especially for heavy ovens or cool room panels.
- Installation by licensed trades.
- Any conversion (gas type) or services upgrade.
- A full service and new consumables (seals, gaskets, filters).
- Downtime during installation.
Our fit-out cost estimator helps you add these to a wider budget. If you want to compare with new equipment, see commercial kitchen equipment finance.
Buying at auction
Venue closures often end in auctions, where prices can be attractive. But auction purchases are usually as-is, where-is, with little chance to test. Inspect beforehand, bring a technician if you can, set a firm limit that includes removal and installation, and check the auction’s terms on payment and collection deadlines. Arrange funding before the auction so you can pay on the day.
How to fund used equipment
For trading businesses, unsecured or cash-flow options, typically $5,000 to $500,000 and sized on turnover and bank statements, are commonly used for equipment purchases, new or used. Some lenders take a more cautious view of older or auction equipment, because it’s harder to value, which is another reason to buy well-documented equipment from reputable sellers.
Business.gov.au’s guidance on leasing or buying equipment sets out the trade-offs: buying offers ownership, customisation, resale and depreciation deductions, but also higher upfront costs and full responsibility for repairs. For used equipment, match the funding term to the equipment’s remaining life. You don’t want to be paying for an oven after it’s been replaced.
If you’d like to see what’s possible before you commit to a purchase, you can ask us what fits with no credit check at the first step.
Tax: the write-off applies to used assets too
The ATO says the $20,000 instant asset write-off is permanent from 1 July 2026 for businesses with aggregated turnover under $10 million. The limit applies to each asset, and in most cases both new and second-hand assets are eligible, although some exclusions and limits apply. Assets costing more generally go into the small business depreciation pool. Our page on EOFY stocktakes and equipment has more on timing purchases around 30 June.
An illustrative example
Illustrative only. A pizza shop owner wants a second deck oven. A dealer has a refurbished unit with service records, a short warranty and confirmation that parts are available locally. The owner’s gas fitter confirms it suits the shop’s gas supply and canopy. A PPSR search shows no registered interests. With removal, transport, installation and a first service added, the total is still well below a new oven, and an unsecured option sized on the shop’s turnover covers it. See takeaway and pizza shop loans for more on funding growth in a busy kitchen.
Warning signs to walk away
Some signs suggest a used piece of equipment is more trouble than it’s worth:
- The seller can’t or won’t say where it came from.
- There’s no serial plate, or it has been removed.
- Heavy rust, corroded elements or cracked door seals throughout.
- Burners or elements that won’t light or heat evenly.
- A refrigeration unit that runs constantly without reaching temperature.
- Pressure to pay immediately without inspection or paperwork.
Any one of these is a reason to slow down. Several together are a reason to walk away, however attractive the price looks.
A quick summary checklist
- Age, service history and previous use confirmed
- Seen running or inspected by a technician
- Gas type, power, water and space suit your site
- Parts and local service support available
- PPSR search shows no registered security interests
- Tax invoice and written description obtained
- Removal, installation and first service budgeted
Equip your kitchen without overpaying
Second-hand equipment done right can save a café or restaurant a lot of money. If you’ve found the right piece and want funding ready, or you’re weighing up used against new, tell us about it in a short enquiry. It takes around 60 seconds and involves no credit check when you first enquire. We don’t hand your details to a crowd of lenders; a real person who understands commercial kitchens looks at your situation and calls you with options that fit. Please fill in the form accurately, including what you’re buying and whether it’s new or used, so we can match you properly the first time.
Frequently asked questions
Is it worth buying second-hand commercial kitchen equipment?
Often, yes. Commercial equipment is built to be serviced and can last a long time. The key is knowing its condition, history and remaining life, and making sure it suits your site. A bargain that needs a gas conversion and new parts may not be a bargain.
What is a PPSR search and why does it matter?
The Personal Property Securities Register records security interests over personal property, including business equipment. If a seller still owes money on equipment and a lender has registered an interest, that lender may have rights to it. Business.gov.au lists checking debts registered on the PPSR as part of due diligence when buying a business.
Can I get finance for used kitchen equipment?
Yes. Trading businesses can often fund used equipment with unsecured or cash-flow options, typically $5,000 to $500,000, sized on turnover. Some lenders are more cautious with older or auction equipment, so condition and value matter.
Does the instant asset write-off apply to used equipment?
The ATO says both new and second-hand assets are eligible in most cases, although some exclusions and limits apply. The $20,000 limit applies per asset and is permanent from 1 July 2026 for businesses with aggregated turnover under $10 million.
Should I buy at auction?
Auctions can offer good prices, especially when venues close, but you usually buy as-is with limited chance to test equipment. Inspect beforehand, bring a technician if you can, and factor in removal, transport and installation.