Usually yes if cash flow supports it — BDC's own guidance says buying, new or used, tends to cost less over the equipment's life than leasing, and used equipment is explicitly eligible for standard equipment financing.
Short answer
Yes, in most cases — but the real decision BDC frames is buy vs. lease, not new vs. used. Its guidance states plainly that if you want a used or refurbished machine, “buying typically offers more possibilities,” and that in most cases, “it’s cheaper to buy up front than leasing to own.” Used equipment also qualifies for standard equipment financing, not just cash purchase.
BDC, the federal Crown corporation that finances Canadian small business, frames the decision around cash flow and cost of ownership rather than condition. Its guidance: “Buying equipment may be best because it typically comes with a lower overall cost of ownership” when your cash flow is solid, and separately, “In most cases, it’s cheaper to buy up front than leasing to own.”
On used equipment specifically, the same page is direct: “If you want the option of acquiring used or refurbished equipment, buying typically offers more possibilities.” Leasing programs are generally built around new inventory from a handful of manufacturers and dealers — if the cheapest route to a given machine genuinely runs through the used market, buying is usually the only way to get there.
BDC’s own equipment loan product finances “up to 125% of the purchase price of new or used equipment,” with up to 12 years to repay and the option to “pay only interest for up to the first 24 months of your loan.” Used equipment is written in as eligible, not treated as an exception case a lender has to approve around.
A down payment “may be required in some cases” and gets assessed during the application, so budget for one — it just isn’t automatic the way it can be with a straight retail purchase.
BDC flags the opposite case clearly: “If equipment lasts only one or two years or you constantly need to upgrade it, you may want to lease.” Buying a used machine that’s already partway through its useful life just moves that churn problem onto you sooner, and an older unit usually carries thinner or expired warranty coverage — you’re taking on more maintenance risk right when the machine has less life left to absorb it.
The same guidance also offers a middle path worth knowing: “Some businesses lease new equipment for what customers will see, while saving money by buying used equipment for what’s in the back.” The decision doesn’t have to be all-or-nothing across a whole fleet.
Assuming the lower monthly payment on a lease is automatically the cheaper option. BDC calls this out directly — a lease payment can look smaller month to month, but “you do not own the equipment,” and over the full term “this option may cost you more.” Run the comparison on total cost over the equipment’s expected life, not on the size of the first invoice. See our companion answer on what utilisation rate actually justifies owning versus renting before you commit either way, and if the plan is to keep tabs on the fleet once you own it, AI equipment tracking covers how firms are keeping that data current without a spreadsheet.
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