While heavy machines can be acquired for a great price at a public equipment auction, there are other methods being marketed as "auctions" such as: sealed bids; repossessions/foreclosures; ware houseman's lien; and even on eBay; all or some of these methods may not actually qualify as an auction.

Potential buyers must be educated about these alternative methods used for selling heavy-duty equipment. It is important that every buyer learn the important features of an auction as well as some of the technicalities about this particular method of trade as it may be very helpful when next acquiring this type of equipment.

Elements

Below are some of features that are part of a public equipment auction.

• Auctioneer – This is a well-trained person who is competent and entrusted with formulating and executing the entire bidding process.
• Viable Market – These are all interested and qualified buyers.
• Well-Published Terms – Inclusive here are rules that are concisely and clearly presented to the market of buyers and are applicable to all participants.
• Marketing Plan – This refers to a good, strong campaign that is targeted at the appropriate audiences.
• Market Exposure – A reference to the amount of time allowed, prior to the bidding day, for prospective buyers to learn about the auction itself and what items will be available for bidding.
• Public Preview – This is the time set aside for all interested buyers to view and inspect the items; it usually takes place the day prior to the auction itself.
• Full Disclosure – A reference to the disclosure of all facts relating to the item being offered for sale and is given to all interested parties.
• Competitive Bidding – This is what actually takes place on the set date and time where all potential, qualified buyers assemble and are given an opportunity to competitively place bids until a winner is declared.

Technical Disqualifications

Based on the above elements, the places listed below are technically disqualified as a public equipment auction.

• eBay - The items for sale on this website are normally listed for a particular time period and bidding ends when that time expires. This type of "auction" allows for bids to be placed at the very last second, irregardless of how many interested customers who have been competing for this item may wish to place bids. Once the clock runs out, the item is considered sold. By the above definitions, the auction should remain open until all qualified and interested buyers have had the opportunity to place a bid; eBay lacks such an element.
• Repossession/Foreclosure – This way of selling vehicles, real estate, etc. lacks certain elements such as a marketing plan, preview time, and enough exposure to the appropriate market, which invalidates this process as a sale by bid.
• Ware houseman's Lien – Elements such as a marketing plan and enough exposure to the market disqualifies this type of sale as an auction. The seller normally acquires such an asset without all of the facts about it being listed, preventing a buyer from having full disclosure.
• Sealed Bid – This version eliminates buyers from competing and merely encourages offers to be submitted. All of the offers are placed in a sealed envelope and opened at a specified time; the person with the highest offer gets to purchase the item offered for sale. Often times these sealed bids are not opened in front of all potential purchasers, making it a somewhat questionable process.

By learning about the important information listed above as well as a clear definition of what qualifies as a public equipment auction, most buyers can be well-armed with a distinct advantage when deciding to purchase a heavy-duty vehicle from a valid and qualified auction company!