Tips on Maximizing Your Budget with Auctions

Buying used equipment at online auctions is one-way companies can acquire the machinery and maximize their budget. But industrial auctions (whether on-site or online) are not always straightforward. For those who have never participated in one, auctions can seem daunting and intimidating. The reality is even experienced buyers may get taken for a ride once in a while.

But used equipment auctions are also a place where you can find incredible deals. It’s not uncommon for machinery at a no-reserve auction to sell at a fraction of the cost of new. Getting a good deal at an auction isn’t pure luck.

Research the Equipment & Auction

It’s important to prepare before participating in an industrial equipment auction. Know what you need and what’s available. Sellers publish a listing page or catalog that provides information on the items up for auction. Review this to decide what you’re interested in bidding on.

Then, research the item’s fair market value. Consider the item’s age and condition, plus the current market trends to approximate a price. That way, you won’t overpay or underbid.

Researching the seller is as important as researching the items you’re interested in. Knowing the chain of ownership, how owners used items, and other pertinent information may give you an edge over other bidders.

Inspect the Equipment

Reputable auctioneers will allow you to inspect the equipment before the auction. This is your chance to put eyeballs on the goods before bidding day. In most cases auctioneers will choose a few days before the auction as designated viewing days. You can get in touch with the auctioneer to confirm your viewing appointment.

During the viewing, you should take all necessary notes and additional pictures of the equipment you intend to bid on. Viewings are typically short, so collect as much information as you can. If you plan on bidding on larger equipment, notify the auctioneer. They may be able to get you additional information such as service records or technical drawings. In order to maximize your auction budget, make sure you are getting quality equipment.

Check Specifications

There are some industries where technology doesn’t change quickly, like in construction or manufacturing. Other industries see lighting fast innovation over a short period. If you’re bidding on a particular item, make sure you check the technology so it isn’t outdated or obsolete. Such items may be difficult to maintain, repair, or find parts. On the other hand, you can get great deals on older machinery if the technology hasn’t changed much.

Ask About Defects

When you buy used equipment, you know you’re not getting a perfect product. Used equipment may come with scratches and dings, and even some broken parts, especially if sellers are auctioning off items on an “as-is” basis. Some defects may turn off buyers and keep bidding prices low, but if you don’t care about such flaws, you can get a bargain.

Buying used equipment through a liquidation or auction site can offer tremendous rewards for savvy buyers.

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