Construction equipment auctions provide contractors with an efficient means of accessing work-ready equipment at auctions. However, in order to be successful at an auction it’s essential to understand its process and avoid potential pitfalls.
Establishing the value of an asset can be done using various approaches: professional appraisers, online pricing guides and conversations with new equipment dealers or contractors can all assist.
1. Know Your Limits
Bidding wars can quickly get out of hand, so make sure that you remember to set and adhere to a budget before beginning an auction. Set an acceptable limit prior to bidding and stick with it even if that means exiting early from an auction.
Have the proper equipment is integral to the success of construction projects, but new equipment purchases can be prohibitively costly; renting or buying used equipment is an affordable alternative that gets the job done while saving money.
To simplify your purchasing experience, be sure to obtain information on buyers’ fees in advance and factor them into your purchase price. In addition, arrange financing before the auction and spread payments out so as to avoid storage and late payment fees – this allows your cash back into your business while still getting what it’s needed for its operation.
2. Stay On Your Toes
Many auctions provide online bidding, which allows you to research equipment before the event. Some auctions even provide inspection reports which could save money! If you can’t make it directly to the auction location, be sure to examine photos of each piece of equipment from various angles, paying special attention to age and usage history.
As part of your due diligence when purchasing equipment with loans or using another form of financing, be sure to verify its title is clear and is free from liens before buying it. Contact the auction house to learn more; some even guarantee a refund if any equipment turns up with hidden liens post purchase! Additionally, determining shipping costs prior to an event can save both time and money!
3. Know the Bidders
When bidding at auctions for equipment, you are competing against multiple bidders. Knowing your competition allows you to place bids at an appropriate time and avoid getting caught in bidding wars.
Plotting value can be achieved using various approaches, including consulting a professional appraiser, exploring auctioneer websites or sales activity data portals such as Top Bid’s, talking with dealers or manufacturers about new or used equipment and using price reference guides such as Top Bid’s for reference purposes. Furthermore, its location and sophistication will have an effect on its valuation.
Make sure that the equipment you are buying is free from liens and has clear title before making your final bid. Furthermore, arrange financing upfront if necessary.
4. Be Prepared to Drop Out
Even though it might seem counterintuitive, dropping out at the appropriate time can save money. If your bid has exceeded your limit at an auction and it is time to stop bidding, be sure to notify the auctioneer by using gestures like nodding, waving hands or waving your catalog in their direction.
Auctions offer an excellent way to acquire or sell equipment at competitive prices, but it’s essential that you research how the process works and are familiar with any red flags that might indicate an unfair sale.
CCG provides online construction estimate services, farm equipment auctions, commercial industrial auctions and municipal online auctions in Minneapolis and throughout the country. For more information please contact us now; our aim is to get you the equipment your business requires at an unbeatably competitive price!
5. Be Patient
Patience is key when searching construction equipment auctions; even if you don’t find exactly what you want, there will likely be another opportunity.
Purchase equipment at auction can eliminate a great deal of the stress involved with sourcing heavy equipment, and often allows you to complete the transaction and take your new machinery home on the same day.
When choosing an auction company, be sure to inquire about their inspection process and buyer fees as well as whether or not they provide a clear title guarantee that prevents liens from impacting future financing arrangements.
Saleing equipment at auction can be an anxious experience, but with proper planning and strategies in place you can rest easy knowing your equipment is secure.
