How a Highland firm bought a minibus at auction on finance
Yes, a business can buy a vehicle at auction on finance. This is auction finance. The secret is to set it up before the auction.
A private hire firm in the Highlands runs taxis, 7 seaters and minibuses. It started out at the taxi rank. Now most of its work is school runs and work for companies.
The owner buys at the big auction houses. In September 2026, he bought a Mercedes-Benz Vito minibus at BCA. Here is how our team set up the finance, step by step.
Can I buy a vehicle at auction on finance?
Yes.
A business can buy a vehicle at auction on finance. The lender can pay the auction house for you. Or you pay first, and the lender pays you back. That is called sale and hire purchase back. A business loan can work too.
What did we do before the auction?
We set up the finance the week before the auction, with one of the top lenders. They can be slower, but their prices are very good.
- The owner told us which vehicle he planned to bid on.
- The lender said the most it would lend on that vehicle.
- If he won, we would ask BCA for the invoice straight away.
The aim was for the lender to pay before daily storage charges began.
What happened when the hammer went down?
The owner won the Vito at BCA. He had enough money in the business to pay BCA at once. That let BCA start getting the minibus to his yard.
So we changed the plan. The lender agreed to pay him back after he had paid. This is sale and hire purchase back, a kind of refinance.
How did the lender know the minibus was his?
The BCA invoice and his bank statement proved the minibus was his.
- the invoice from BCA to him
- his bank statement, showing he paid BCA in full, with the same reference
Both showed it came from BCA, a well known auction house. We then sent the finance documents to the lender, ready before the minibus arrived.
Why did the lender wait for the minibus to arrive?
The lender paid only once the minibus arrived, so there was nothing to undo. It might not arrive, or he might not accept it.
About a week later, the minibus arrived. The owner sent photos of it at his yard, with the date on them. He also signed a form to say he accepted it. The lender paid him back the same day.
What were the numbers?
The lender would lend the full price, not counting VAT. The owner chose to put in 10%.
| The minibus | Mercedes-Benz Vito, nearly new |
|---|---|
| Price at auction | About £33,000 + VAT |
| The most the lender would lend | All of the price, not counting VAT |
| What the owner chose to put in | 10% |
| Paid back into his business | 90% of the price, not counting VAT |
| How long | 48 months (up to 60 was possible) |
| From arriving to paid back | The same day |
He could have put in less, or had the lender pay the VAT for now.
What are the risks of buying at auction?
Buying at auction can save money, but you carry more of the risk yourself.
- There is no dealer to go back to if something is wrong.
- If bidding goes above the lender's limit, you pay the difference.
- Auction houses differ. Some want a deposit at once and the rest in about 7 days. Some want it all on the day.
- A lender may have its own conditions, or pay later than the auction wants. We cannot promise a pay date.
- If payment is late, the auction house may charge for storage. The lender will not pay that, and nor will we.
This Vito came from a national rental firm. It had a full service history, and the maker's warranty still ran. So the owner was happy to take the risk.
His reward was the price. It was well below what UK dealers ask for the same minibus. A saving like that is usually worth far more than a few days of storage.
Does auction finance work for other things?
Yes, auction finance works for most things a business buys at auction: diggers, lathes and factory machines. Buying a van? Read our van finance guide.
Who is Mackenzie Commercial Finance?
Mackenzie Commercial Finance is a team of asset finance brokers. We do not lend money. We find the right lender for you, from over 120. There is no fee to apply.
Our team has worked in banking and finance since 2008. We are based in Scotland, and we help businesses across Scotland and the UK.
Frequently asked questions
Who pays storage charges if the finance is late?
You pay them. The lender and our team cannot. Set up finance early to avoid them.
Can the lender pay the auction house for me?
Yes, the lender can pay it for you. Send us the vehicle's details once you win. We ask the auction house to make the invoice out to the lender, and the lender pays it.
Can I get finance after I win?
Sometimes, but it is harder. Fewer lenders can help in time, and you may lose the vehicle. Set it up the week before.
We have left out the customer's name. This case study shares what we have seen as finance brokers. It is general information, not financial advice. Every business is different, so base any decision on your own situation.
