Liquidating highly specialized assets such as heavy equipment vehicles can be a problem. Finding buyers can be very challenging due to the fact that demand for this vehicle is limited to those needing very specific vehicles, which could make the selling potential lower than some. Another problem is depreciation while waiting to be sold; the longer equipment sits on a sales lot waiting for a buyer, the more its value depreciates. One effective way to liquidate such types of assets is online heavy equipment auctions.

Auction Definition

Unlike the fixed priced method more commonly known, an auction is a method of trade where the buyers determine the market value of the items being sold which is accomplished through a process called bidding. Potential buyers, or bidders, try to outbid each other by raising the current price. Once there is no one willing to raise the amount any higher, the last bidder is declared the winner and is allowed to purchase the item.

While this system may seem more complicated in comparison to buying the vehicle at a fixed price, it does have many advantages. For example, if the item being sold is of limited stock such as heavy-duty commercial vehicles, the purchasers at an auction are going to determine the true market value of the vehicle as opposed to an arbitrary figure set by a dealer that includes a mark-up above the actual value of the truck. If there is a high demand for a particular type of vehicle, its value could rise proportionately which would be a great advantage to a seller.

Another benefit of selling at an auction is the quick turnover rate. Before the event takes place, it is fist advertized in order to attract as many potential buyers as possible. It only takes several minutes for bidding on a single unit and once the gavel hits. the unit is sold. This can be very beneficial for a seller because the unit will not sit on a sales lot depreciating in value.

Auction Function

Once an owner decides to liquidate any assets, the next step would be to contact an auction company that conducts online bidding to include the unit in their next line-up of equipment to be sold. A representative will be sent to the site where the machinery is located to determine the condition of the unit, take photos, and collect any corresponding documents such as registration and service history.

Seller Advantages

There are many reasons why heavy equipment auctions are a good option for sellers.

Transportation - One of the advantages of selling through an online auction is that the unit does not have to be transported to a physical site since it can be viewed and bidding accomplished via the internet. A seller may choose to renovate the unit or leave have the auction company perform any necessary refurbishing for a certain additional cost.

• Marketing - Once refurbished, marketing can begin. Pictures of the unit and its specifications will be used as part of the marketing information. If a live auction is also held, the date, time and place of the event will be included. Marketing is done by various means including newspapers ads, email, internet marketing, etc. The location of the unit will be noted so that interested buyers can inspect the unit.
• Reserve Price - Sellers can set a "reserve price," or the lowest acceptable bid. This provides for the equipment not selling for an unreasonably low price.
• Set Time - The auction company will post the machinery online on the day when bidding is set to begin. A countdown timer will determine how much time is left for buyers to place an online bid.
• Participants - To avoid fraudulent buyers, interested participants must be registered on the website in order to join in the bidding process.
• Live Auction - A live event may also follow once the online bidding has ended. The same rules apply that the highest bidder is able to purchase the equipment. After payment has been made, the seller can collect any revenue at the conclusion of the event.

An online auction is a fast and convenient means of liquidating specialized assets such as heavy equipment. It offers worldwide coverage, which means the item will be marketed to a large number of potential buyers. It is also convenient because the equipment does not have to be transported to another location. Hopefully this article has provided some helpful information regarding the advantages as well as the process of how online heavy equipment auctions work!

Call JJ Kane Auctioneers About Heavy Equipment Auctions!

Are you interested in selling your equipment at heavy equipment auctions? Check with JJ Kane Auctioneers at (856) 764-7163 for further information about liquidating your used equipment!