Hoists, aligners, tyre machines and scan tools often share one finance contract. What funders leave out, the hoist sign-off and how approval works.
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Workshop Equipment Finance · Hoists · Bundling
Can you put a hoist, an aligner, a tyre machine and a scan tool on one finance contract, and what happens to the software and hand tools that do not fit? Here is how funders usually split a workshop fitout, what they leave out, and the hoist sign-off that comes before settlement.
Quick Answer
Independent mechanic and tyre workshops can usually finance hoists, wheel aligners, tyre machines and diagnostic tools together in one bundle, but software subscriptions, hand tools and installation work are often left out, and a hoist must be installed and certified before a funder pays. Most of the gear sits comfortably under equipment finance, secured over the tools and equipment themselves, while the small items are paid in cash or through a separate facility.
Also called: automotive workshop equipment finance, garage equipment finance, workshop equipment loan. They describe the same need: funding the lifts, machines and tools a repair workshop runs on.
What does mechanic workshop equipment finance cover?
Mechanic workshop equipment finance covers the serial-numbered machines a repair business earns from: two post and four post hoists, alignment lifts, wheel aligners, tyre changers and balancers, diagnostic scan tool hardware, air conditioning service units and compressors. Each of these has a make, a model and a resale market, which is what lets a funder take the equipment itself as security instead of asking for property.
The structure is the same one used across the equipment finance guide: a fixed term, fixed repayments, and the asset registered as security until it is paid off. Where a workshop differs from a warehouse or a factory is the mix. A typical fitout combines a few large items, a handful of mid-priced machines and a long tail of small tools and software, and funders treat each layer differently.
This post is about the equipment, not the building. If you are still deciding whether to lease or buy the premises, the lease or buy your first workshop insight covers that call, and automotive service sites with wash bays are covered in the car wash finance guide. More business equipment questions sit in the Business Owners Hub.
Should you finance workshop equipment as one bundle or split it?
Most workshops are better off financing the major items as one bundle, with a single multi-asset contract, one repayment and one set of documents, and splitting only when the items arrive at different times or come from different sellers. The choice is really one bundle, split it, or a mix of both.
One bundle
- All items bought from one supplier on one invoice
- Everything delivered and installed in the same window
- One repayment that is easy to track against revenue
- Each item clears the funder's minimum amount when grouped
Split it
- The hoist settles weeks after the aligner and tyre gear
- Used items from a private seller sit beside new items from a dealer
- You want different terms for long-life and short-life gear
- One item is likely to be upgraded or sold early
A mixed bundle, indicative and varies by funder, is common: the hoists, aligner and tyre machines on one contract, and the scan tool on its own shorter term because it dates faster. Funders often set a minimum amount per contract, so a single small item may not be worth financing separately. Where this commonly lands is one contract for the heavy gear and cash for everything under that minimum. The general bundle against split trade-off is covered in the warehouse upgrade finance insight.
Tax sits beside the finance decision rather than inside it. At the time of writing, the ATO says small businesses with aggregated turnover under $10 million can claim an instant asset write-off for eligible assets under the $20,000 per-asset threshold, which the Government has made permanent from 1 July 2026 (source: ATO, Instant asset write-off, last updated 28 August 2026, read 29 October 2026). Financing an item instead of paying cash does not, of itself, decide whether it qualifies. Ask your accountant how each item is treated before you finalise the bundle.
Which workshop items and software do funders usually leave out?
Funders usually leave out anything without a resale value of its own: diagnostic software and data subscriptions, hand tools, consumables and installation labour. The software rarely rides on the contract because a subscription cannot be repossessed or resold, even when the scan tool it runs on can.
| Item | Usually financed? (indicative, varies by funder) | Bundle or separate | Note |
|---|---|---|---|
| Two post hoist | Usually yes | Bundle | Settlement typically waits for installation and sign-off |
| Four post or alignment lift | Usually yes | Bundle | Same certification gate as a two post hoist |
| Wheel aligner | Usually yes | Bundle | Often bought with the alignment lift |
| Tyre changer and balancer | Usually yes | Bundle | Strong used market supports the funder's security |
| Diagnostic scan tool hardware | Often yes | Bundle or a shorter separate term | Dates faster than lifts and machines |
| Scan tool software subscription | Usually no | Separate | Paid monthly from cashflow |
| Air conditioning service unit | Usually yes | Bundle | Refrigerant handling is licensed separately |
| Hand tools and consumables | Usually no | Separate | Small items, cash or a business loan |
For small items, cash or a business loan is the usual answer. If the excluded items add up to a meaningful sum, an unsecured or secured business loan can sit beside the equipment contract, so installation labour, the first year of software and the tool chest are covered without stretching the equipment bundle to include items a funder will not accept.
What has to happen before a funder pays for a new hoist?
Before a funder pays for a new hoist, it usually wants the hoist installed and signed off, because an uncertified lift is neither safe to use nor easy to resell. The rule of thumb is certified before it is funded.
At the time of writing, SafeWork SA guidance on vehicle hoists, jacks, ramps and stands points to AS/NZS 2550.9 and AS/NZS 1418.9 for vehicle hoists and AS/NZS 3000 for electrical work. It expects hoists to carry a valid design registration number, daily pre-operational checks, an inspection at least every three months, an annual independent inspection and a logbook. Other states apply similar standards through their own regulators.
For the finance, that sets the order of events. The supplier quotes and invoices the hoist with its design registration details, the installer fits and commissions it, and the funder settles once the installation sign-off is in hand. Some funders pay a supplier deposit earlier; that is indicative and varies by funder, so confirm the payment trigger before you sign the supplier's order. Keep the logbook from day one, because a buyer or a funder will ask for it if the hoist is ever sold or refinanced.
Which licences does a motor repair business need, and do funders check them?
A motor repair business generally needs a business-level licence where its state requires one, plus qualified people doing the work, and funders may check both. In New South Wales, at the time of writing, the NSW Government motor vehicle repairer licence page says the business owner holds a motor vehicle repairer licence and anyone doing repair work holds a tradesperson certificate, with licences shown on a public register.
The licence sits with the business, not the individual mechanic, which matters when a mechanic leaves an employer to start their own shop: the new business needs its own licence before it trades. Other states run their own rules, so check with your state licensing body. Air conditioning work also needs refrigerant handling licences, which are a separate scheme from the repairer licence.
A funder may ask for the licence number or search the public register as part of approval. Having it ready, along with your ABN and the workshop address on the licence, keeps the file moving.
How do funders assess buying an existing workshop with its equipment?
Funders assess an existing workshop purchase by separating the equipment from the business: the hoists and machines can go on equipment finance against their value, while the goodwill and customer base usually need a business loan backed by the trading history.
Expect the funder to ask for an itemised equipment list from the sale contract, with makes, models and ages, and sometimes a valuation of the larger items. Equipment bought as part of a business sale is often treated like a private sale, so the funder checks the seller owns it outright and that no existing finance is registered against it. The seller's financials and the workshop's customer book carry the goodwill side.
The lease matters as much as the gear. Landlord consent to assign the lease, and confirmation that the hoists can stay where they are bolted down, should be settled before finance is unconditional. If you want a quick read on how your file would look, you can check eligibility before committing to the sale.
Can a mechanic going out on their own get workshop equipment finance?
A mechanic going out on their own can often get workshop equipment finance, but the approval rests more on the equipment, the deposit and personal credit than on trading history the business does not have yet. A newer ABN narrows the field, not closes it.
For a newer ABN, the usual shape is a low doc application built on BAS, business bank statements and a clear equipment list, often with a deposit requested; the amount is indicative and varies by funder. Starting with good-quality used tools and equipment can keep the first contract smaller and easier to approve, with upgrades financed once the workshop has a year or two of figures behind it.
The low doc asset finance page sets out how those applications are usually assessed. A broker can match the file to a funder that accepts a newer ABN for workshop gear, rather than lodging with several and collecting declines.
Workshop equipment finance works best when you finance the machines, not the whole fitout. Hoists, aligners, tyre gear and scan tool hardware usually sit well together on one contract; software subscriptions, hand tools and installation labour usually do not, and are better paid in cash or through a business loan. A new hoist is certified before it is funded, the repairer licence sits with the business, and buying an existing workshop splits into equipment finance for the gear and a business loan for the goodwill.
Key takeaway: get an itemised quote that separates machines from software, labour and small tools, then finance the machines as one bundle and plan cash for the rest.Frequently Asked Questions
A car hoist can usually be financed, because two post and four post hoists are serial-numbered assets with a resale market that funders accept as security. Most funders settle once the hoist is installed and signed off, so plan the installation before the payment date. The equipment finance guide explains how the contract is structured.
Software is usually not included in workshop equipment finance, because a diagnostic subscription has no resale value a funder can recover. The scan tool hardware can often be financed while the subscription is paid monthly from cashflow. The working capital for your first workshop insight covers funding the costs that sit outside the equipment contract.
The deposit lenders want for workshop equipment depends on how long the business has traded, the quality of its statements and the age of the equipment, and it varies by funder. An established workshop with clean records is often asked for little or no deposit, while a newer ABN is more likely to be asked for one. A low doc application can still work for a newer business.
Whether you need a motor vehicle repairer licence to run a workshop depends on your state. In New South Wales, at the time of writing, the business owner holds a repairer licence and the people doing repairs hold tradesperson certificates, so check your own state's licensing body. If you are setting up your first shop, the lease or buy your first workshop insight covers the premises decision.
You can usually finance the equipment when buying an existing mechanic business, using an itemised equipment list from the sale contract. The hoists and machines go on equipment finance, while the goodwill is usually funded through a business loan based on the workshop's trading history.
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