What You Need to Know About Heavy Equipment Auctions

Many large companies have a piece of surplus equipment, and many look to auction houses to get the equipment off their hands.  However, when buying heavy equipment at an auction- there are things you should take into consideration.

If you are buying equipment at an auction, ask yourself, is there a guarantee or warranty for this product if it breaks down? In some cases, the answer is yes.  Always know the reputation of the auctioneer because most will sell the items as-is with no warranty.  If you’re needing equipment like a backhoe, trencher, or other big items, here are some tips to help you before and during the auction.

How Old is the Equipment?

Research into how old the equipment is and how many hours it has been used.  If the equipment you want to bid on is old and has many hours of use, consider that you may have to replace parts in the future.  Keep in mind, buying new heavy equipment might be cheaper in the long run.

How Was the Equipment Used?

If you find a piece of equipment that is used but not abused, it may be worth its weight in value.  Even though heavy equipment is used but still looks to be in extremely good condition, you will need to do your research.  If there is no history on it beware- you could be buying a lemon.

How Easy Can I Find Parts for the Machinery?

Finding parts for an old used and worked piece of equipment requires research.  If there is no information on the equipment you want to bid on, you could be at risk.  Consider finding a qualified repairman that might be able to inspect it for you- sometimes even the best cared for equipment will need parts someday down the road.

Preparing for Heavy Equipment Auctions

For many businesses, heavy equipment auctions can present great opportunities for buyers to get machinery and equipment at a great price.  Not only can you as the buyer save a significant amount of money, but there may be potential tax benefits since it’s new to you.  There are financial advantage risks when buying something at an auction.  Here are some tips for preparing for upcoming heavy equipment auctions.

Ensure a Clear Title

Before purchasing any equipment, you will need to establish that there is a clear title. Also make sure that ownership can be transferred to the purchaser, lien-free.  You will need proof of the clear title to give to your equipment lender if you are going to finance your purchase.  If there are liens found on the equipment you have purchased, many auctions companies issue a refund.  Check with the auction you want to attend.  You should reach out to the auction house and ask for information on the current owner and lienholders.  A finance company might be able to assist you in getting the lien removed, ensuring you have a clean title on the equipment you are bidding on.

Compare/Research Pricing

Search all items you want to bid on online.  Compare all similar items and decide what is the most that you will spend on all equipment you want to bid on.  Pay attention to specifications for every item you want to bid on, because this can affect the price at the end.  There may be a 10% buyer’s premium that the auction company will charge.  This could affect the purchase price and may be more than what you are willing to pay.

Secure Auction Financing to Increase Your Buying Power

When you’re looking at bidding on any equipment at an auction, you will need to secure a pre-approved used equipment loan.  If you bid online or at the auction site, most national sellers will require the purchaser to be paid in full before they release the equipment.  Getting a pre-approved loan will help keep your bid on track, money-wise and increase your buying power.

Understand the Bidding Process 

The process of bidding at an auction is why you need to be prepared.  Familiarize yourself with the policies and the specific auction bidding for both online and on-site auctions.  Sometimes, you may need to get online and register before the auction. Always check the auctions calendar and times to verify the equipment you want to bid on is for sale.  You can also do a proxy bid if you are interested in multiple pieces of equipment. Don’t forget that there may be bidders from equipment auctions online, which could intensify the competition.  Knowing the situation and researching all options at an auction will help you save money on the equipment you want to bid on and ensure you will never overbid.

Have Fun

The most important thing to remember at any auction is to research and have fun.  Take all our tips into consideration and contact us at High Plains Auctioneers at 806-244-6771 or visit our Upcoming Auctions to learn more.