What You Need to Know When Buying Heavy Equipment at an Auction
Many businesses who rely on heavy equipment and machinery in their industry obtain these items at auctions.
Not only is buying used equipment more economical than purchasing new gear, it is better for the environment, too.
Even so, when buying at auction, it’s important that consumers keep a few considerations in mind.
The following tips may be helpful for anyone thinking about buying machinery at an auction.
Get Your Ducks in a Row
Before you head to auction and decide to bid, it’s essential to secure financing so that you can easily pay for your purchases and have them delivered to your business site (Source: http://www.hgpauction.com/heavy-equipment-auctions/).
Before you attend an industrial equipment auction, it is also a good idea to perform some research.
Find out about the products that will be auctioned.
Moreover, check with the auction management to determine how the equipment was tested to ensure that it is in optimal condition.
The more you can find out before the auction, the more information you’ll have to when it comes time to bid.
You’ll be able to make more educated decisions.
Consider Equipment Age
When bidding on heavy equipment, it’s important to find out its age and as much of its history as possible.
How many hours of usage has the machine been subjected to?
Since parts wear over time, you’ll want to calculate in some potential maintenance costs for the units you purchase.
This will help you determine the type of deal you may (or may not) be getting.
Of course, if the machinery boasts an acceptable level of wear and tear, you may have a great bargain on your hands, one that will complement your business and its needs (Source: http://www.cracked.com/article_19096_the-7-most-needlessly-terrifying-pieces-heavy-machinery.html).
Finally, be sure you understand how much the equipment you choose to bid on would cost if you were to purchase it in brand new condition.
This will allow you to determine your cost savings in light of the item’s previous usage and wear.
Auctions are generally excellent places to find great deals on perfectly viable equipment, but buyers should still make sure they understand all the cost savings involved.
By keeping these tips in mind, you’ll be better prepared when you attend your next auction.
Conducting research and learning about the auction company and equipment can help make the decision making easier.
You would not want to spend a large amount of money on equipment that needs to be replaced in several months.
In the end you will spend more than you need and it was probably better to buy new equipment.
Although buying heavy equipment at auction is an excellent way to save money and still obtain the equipment you need for your business, keep yourself educated and do your homework before making a big purchase.