Buying machinery at auctions is the most efficient way to boost your productivity while saving big. Knowing the ins and outs of tool liquidation is essential if you’re heading to your first auction. Find out everything you need to know about buying and selling equipment with this quick Revelation Machinery guide.
Pre-Auction Prep
Pre-auction preparation is one of the most important parts of attending an industrial auction. Auctions, whether online or offline, sell items ‘As-is, where-is’. This means that what you see is what you get. You’re committing to purchasing the equipment in its current state without any guarantees or implied warranties.
Since the seller at a heavy equipment auction is not obligated to guarantee the machine’s future functionality, you are responsible for ensuring the equipment fits your needs. Auction catalogs typically offer minimal information about the machines, which is why it’s so essential to perform pre-auction checks. Usually, this means sending over a technician to verify the equipment’s condition in person.
Look for critical signs of wear and tear, like fluid leaks, corrosion, and signs of previous repairs. You can ask the seller for additional information if the online listing doesn’t offer documentation. If you’re attending an online auction and sending a technician isn’t an option, consider contacting the auction platform for additional photographs.
Researching Fair Market Value
If you’re attending a heavy equipment auction, it pays to research the fair market value of your target purchase.
- Online Marketplaces: Tool liquidation is difficult to price. Use online marketplaces to find the asking prices of comparable models. Prioritize equipment of a similar age, condition, and capability.
- Price Guides: Price guides and other professional publications can do much of the heavy lifting for you. These price guides track the value of fabrication machines and other equipment over time, and they’re an excellent auction tool.
- Auction Archives: Some auction houses and online platforms maintain records of past auctions. You can consult these archives to check the winning bids on similar machinery sold in the past.
Now that you’ve done your research, you can set a maximum bid for the heavy equipment at the auction. If you’re buying a CNC grinder, for example, maintaining a maximum bid will help you stick to your budget and avoid emotional bidding.
Understand The Terms
It’s essential to know how to avoid unwanted surprises when buying and selling equipment. Before you participate, carefully review the auction’s bidding terms. Pay extra attention to details regarding payment methods, removal deadlines, and shipping policies. If you must pay for shipping, you’ll have to factor that into your tool liquidation bidding strategy.
Create a Bidding Strategy
A strategic bidding approach is the best way to increase your chances of snagging the equipment you want. For example, if you’re interested in a Haas machine, it’s best to observe the bidding patterns and gauge the overall tempo of the heavy equipment auction before bidding. Constant, incremental bids can signal interest, while an assertive late bid can surprise your competition and win you the lot.
Post-Auction Logistics
Winning the bid is only the first step. Planning for this step can help you avoid unnecessary expenses and delays after the auction.
- Payment Finalization: Most auction platforms will explicitly state their preferred payment methods. It’s essential to settle your payment promptly to avoid delays at this stage.
- Removal Terms: Carefully review the permissible removal dates and times provided by the heavy equipment auction managers. Note any restrictions they might have for on-site equipment.
- Transport: Every piece of used equipment demands a different approach to transportation. Assess the machinery’s size, weight, and dimensions to select the appropriate transport vehicle. Will a flatbed truck be enough, or will you need a specialized lowboy trailer? You should also factor in distance, road conditions and restrictions, if any. Some auction platforms will provide loading equipment like cranes or forklifts to help with transport. You should check the tool liquidation terms to verify what loading and transport support your auction provider offers.
- Disassembly: Disassembly is an often overlooked part of heavy equipment auctions. Certain machinery might require skilled personnel to perform disassembly on-site, which might require hydraulic or electrical disconnection. You’ll want to arrange for this in advance before transporting the equipment.
Industrial Auctions, Simplified
Buying and selling equipment is easy with Revelation Auctions. Our industrial equipment for sale includes machinery from top brands like Haas, DMG Mori, and more. Speak to an expert to find the perfect used equipment for your production floor today.