Purchase of industrial equipment can be a costly venture. To ensure they make an informed decision, buyers should evaluate many factors when making their choice.
At times, it is more cost-effective to acquire equipment like an aeroquip fittings at an industrial auction rather than purchasing new. This is particularly applicable to larger purchases.
Not all auctions are created equal.
Know What You Are Bidding On
At industrial equipment auctions, it’s crucial that you know your budget and do your homework. Your industry knowledge can also help identify whether the equipment is worth its asking price. Sit down and create your final budget for each piece you wish to bid on; this will prevent spending beyond your means and ensure you stop bidding when bids become excessively high.
One of the main hidden costs when purchasing equipment at auctions is the buyer’s premium, which typically ranges between 10-25 percent of winning bid price. Other fees may also include delivery and removal fees for large items like heavy equipment.
Additionally, always read reviews about the seller to verify if they are legitimate and reliable specially look for John Deere equipment selection. Be wary of sellers who start bidding themselves or allow others to bid on their equipment to artificially inflate its selling price.
Perform a Virtual Inspection
No matter what stage a business may be at in their growth cycle, online auctions provide an effective and convenient means of selling equipment quickly. While they can provide efficient sales of assets quickly, buyers may feel uncomfortable buying equipment without seeing it first-hand first.
Technology has helped make remote inspections more feasible. Online inspection software like Formview V.4 makes this possible by enabling you to schedule meetings with on-site customers and collaboratively complete inspection forms in one platform. In addition, this platform streamlines communication and collaboration while sharing documents/images between parties involved and creating a knowledge base.
Record keeping in a virtual environment is just as essential to its operation as in physical locations. A good system should store all information shared during calls and make past ones easily searchable with easy-to-find tags; while being safe from cyberthreats and outages.
Ask for Proof of Maintenance History
Be sure to provide all relevant details when registering to bid at an auction, such as your name, business, phone number, driver’s license number, etc. In some instances, you may even be required to deposit an initial percentage of your bidding limit as a refundable deposit.
Examine any suspicious signs on or around the equipment or its paperwork. While clean machinery could indicate regular maintenance, it could also mean that previous owners tried to cover up or obscure damage with regular washout. Look out for fresh oil seeps or other telltale indicators of neglect.
Check with the auctioneer whether mechanical inspections will be available to potential buyers prior to bidding on machinery for sale, this can give an indication of its condition and whether or not it fits your needs. Also ask for a limited warranty with your purchase to ease any concerns over its condition.
Check the Auctioneer’s Terms
Before bidding, be sure to review the auctioneer’s terms carefully. These could include details like hammer price, buyer’s fee and any shipping and handling costs that may apply – each seller may have unique stipulations for winning bids that you should understand prior to placing any.
Some sellers provide reserve prices as an added incentive for potential buyers. Reserve prices should be disclosed within auction descriptions or upon request from potential buyers.