Construction equipment auctions are a great place to get a good deal on construction equipment if you know how to bid. Construction equipment auctions can be found both online and offline. However, in order to be able to do so successfully, you will need to understand the market to know whether you should keep bidding higher in order to get a better deal.
Know The Age Of The Equipment
One of the most important factors to consider is the age of the equipment. You must not only take into consideration how long since the equipment was originally made, but also how many hours the equipment has been used. This will allow you to determine how much wear and tear the equipment might have experienced. Small rubber parts tend to wear out very quickly and need to be replaced often. Metallic parts, on the other hand, tend to take a long time to wear out. When they do, the amount of repairs necessary will be more extensive.
Research The Auction And Equipment
When purchasing construction equipment at an auction, make sure to research the auction ahead of time to make sure that the auction is one that provides inspection reports so that you know exactly what you will be getting. By knowing the history of the equipment, you will have a sense of what it should be worth.
Research The Pricing
Research the historical pricing of the equipment you are bidding on in order to determine if you are getting a good deal. However, in most cases, you will be paying less than you would if you simply purchased the equipment outright.
Understand Rough Handling Vs. Rough Conditions
Understand the difference between rough conditions and rough handling. Heavy construction equipment is designed to be used under rough conditions, so if this is included in the history, this is considered normal. However, equipment that was handled roughly may have mechanical problems as a result that would justify bidding lower.
While you can secure your own financing, another option is to secure financing from the auction program. This allows you to save time and avoid the hassle of searching for financing. There are some auction companies that will finance 100% of the bid. However, it may make sense to consult with your bank because they can often offer loans at more attractive rates.
Auctions can be an interesting experience for newcomers, but if you are not sure about anything, make sure to ask.Share