A used construction equipment auction is an inviting way for buyers who are looking to purchase equipment at a value because it is the bidders, themselves, who determine the selling price. Although this is true, purchasing equipment from an auction does not always mean being able to walk away with a piece of equipment for a bargain price. To ensure a successful outcome, buyers must establish a plan before purchasing machinery from such a venue.
Construction Equipment Auction Preparation
There are several things that must be done prior to purchasing machinery at heavy equipment auctions.
- Your Needs – It is important to determine the type of equipment required for a job. For example, if a business needs a bucket truck, then it is important to determine other important specifications such as the maximum working height, capacity, and boom configuration based upon intended purpose. Mismatching these two variables could be a costly mistake.
- Construction Equipment Financing – The next priority would be preparing for financing. Even with used equipment, few buyers pay cash and instead require financing. If this is the case, it is important to evaluate your ability to obtain credit, whether personally or through a business, since a poor credit score could lead to low approval rates and high interest rates. Some auction companies offer in-house financing although it is always a good idea to shop around for better rates from premium lenders. Secure pre-approved financing with enough credit to cover the market value of any prospective equipment. If you are not sure how much the equipment will sell for, ask the auctioneer. They will be glad to give you an estimated value of the items you need to buy.
- Construction Equipment Auction Companies – Then, look for auction companies that sell the necessary equipment. Before bidding at any event, go to an auction and just participate as a spectator to see how a particular auction company operates. This is also a good time for first time buyers to learn the lingo and get used to the terms used during the bidding process.
Buying Strategy
Preparation on the date of the event is just as important as pre-purchase preparation and can have a big affect on the results of the sale. Participants should arrive at the venue as early as possible in order to thoroughly inspect and test offered equipment. This is a golden opportunity to sort out the good machines from the others. Those who do not have a background in machine mechanics should bring a professional mechanic to conduct an inspection.
Before bidding begins, determine the market price of any prospective equipment according to its condition by using a pricing guide like a Kelly Blue Book or NADA. That amount should serve as a basis for the highest bid to be placed on that particular piece of equipment so overbidding can be avoided. During the actual event, never be tempted to get into a bidding war. The atmosphere at these events is intense and emotion can often drive potential buyers into making wrong and often costly decisions.
Planning is an important step when purchasing at used construction equipment auctions. Unlike vehicle dealerships where the price is fixed, at an auction the price can go either way. To find a great deal, buyers must carefully come up with a detailed plan before making an actual purchase!
We add scores of used construction equipment items to our auctions each week. Download our Buyer’s Guide, Create Your Free Account and don’t miss a deal. Have questions? Contact us and we will assist.