What You Need to Know About Heavy Equipment Auctions

Many large companies often have surplus heavy equipment they seek to offload, frequently turning to auction houses for assistance. As a buyer, there are important factors to consider when purchasing heavy equipment at an auction. These include the age of each machine, how easy it will be to get replacement parts, and how to win at a heavy equipment auction.

How Old is the Equipment?

Research exactly how old the equipment is and how many hours it has been used. If the heavy 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. If this is the case, buying new equipment might be cheaper in the long run.

How Was the Equipment Used?

If you come across used equipment that is in decent condition, it might be worth buying. However, even if the heavy equipment appears to be in excellent shape, it’s crucial to conduct thorough research. Be cautious if there’s no available history; you could end up with a lemon.

How Easy Can I Find Parts for the Machinery?

Finding parts for an old 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 of wasting your money.

Consider finding a qualified repairman who might be able to inspect it for you. Even the best cared-for equipment will need repair and replacement parts down the road, so you will need to be prepared before you attend a used equipment auction.

Preparing for Heavy Equipment Auctions

For many businesses, heavy equipment auctions can present great opportunities 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. There are financial advantage risks, too, when buying something at an auction. Here are some tips to help prepare you 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 auction companies can issue a refund, but some only offer equipment as is with no returns.

Verify all rules and regulations with the auction house. You should reach out to them and ask for information on the current owner and lienholders if there are any. 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.

Research and Compare Pricing

Research all of the auction items you are interested in online. Compare all similar equipment and decide what is the most that you will spend on each lot. Pay attention to specifications for every item you want to bid on, because this can affect the price at the end. Also, there may be a 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 heavy 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

• Bidding at an auction requires thorough preparation, making it essential to be ready for the process. Here are some steps you can take.
• Familiarize yourself with bidding policies for both online and on-site auctions.
• Sometimes, you may need to register before an auction.
• Always check the auction 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 online or on the phone, which could intensify the competition.
• Knowing the situation and researching all options will help you save money on the equipment you want to bid on and ensure you will never overbid.

Other Considerations

Before you buy heavy equipment at an auction, see if there is a guarantee or warranty for it if it breaks down. In some cases, the answer is yes. You should always know the reputation of the auctioneer as well. Look at feedback from past buyers and ask others if they have had any experience with that auctioneer. Lastly, be sure to thoroughly inspect the equipment before making a bid.

Contact HPA For More Information

The most important things to remember at any auction are to research, bid wisely, and of course, have fun! If you have any questions, please contact the experts at High Plains Auctioneers at 806-244-6776 or view our Upcoming Auctions to see what we have available.