Construction equipment is the life blood of the construction industry. Because heavy equipment can be an expensive investment it is worth your time to consider purchase options. One good option is a construction equipment auction. The unique thing about this selling method is that each unit is sold based on market demand and price. Auctions offer the possibility of purchasing heavy equipment at a cost that could be lower than going market value.
Considerations
Because the construction equipment sold in this fashion is used, it requires a different approach than going to a dealership. There are three important things that should be considered in such situations: equipment condition, value, and parts availability.
- Condition – Construction equipment sold at auction is almost always used. Some may be relatively new, as in the case of fleet-owned vehicles, while others may have been used well. Although most auction companies have a policy of divulging actual condition of a vehicle prior to sale, there are problems that are not readily detectible, even by honest sellers, which is why it is important to first assess the condition of an item before making a bid. Some auctioneers employ a third party mechanic to evaluate and rate the quality of all machines sold; however, an inspection should still be performed by a professional mechanic for the best vehicle evaluation.
- Value – The value of equipment sold at an absolute auction is determined by the bidders, themselves. Those who are interested decide how much to pay for a certain unit and the highest bidder is able to purchase it. While this buying method may seem to rely on competition, a successful purchase is not about winning but about paying less than market value for the equipment. In order to decide how much to bid, it is important to determine that value. The value of construction equipment is determined not only based on appearance, but also on the condition and wear observed on mechanical parts.
- Parts Availability – When buying used construction equipment it is important to consider its longevity and the accessibility of replacement parts. Avoid buying obsolete equipment that does not have alternative parts because it may lead to long down time if the machine fails. Be sure parts are locally available and that your local mechanic-vendors are capable of making repairs.
Public auctions offer a great alternative to buy used construction equipment because a public, absolute auction gives the buyer an opportunity to buy the equipment they need in an open and transparent process, direct from the current owners. In our auctions, the only parties involved in setting the price are the other bidders in the auction. Download our Buyer’s Guide for tips and answers to commonly asked questions. If you have additional questions, contact us. We are glad to help.