The construction industry has been hit hard by recent problems in the housing business. Just about daily, you can read about this or that business going under. But for companies that manage to survive the current crisis, all of these business failures may become a blessing in disguise. Because as construction companies sell off or liquidate their inventories of heavy equipment and send them to construction equipment auctions, you may be able to expand your own company by buying items at auctions.
Auctions are great ways for you to pick up items like used bobcat skid steers or skid loaders that for sale are way below normal sale prices. But auctions have long been known for sharp dealings and an "every man for him self" mentality. So before you hop in the car and head off for nearest auction, there are several things you need to understand first.
Construction Equipment Auctions Tips
Tip #1: It's "Buyer Be Aware". Live auctions are exciting. The sights and sounds of the traditional auctioneer working the crowd with their trademark patter can be quite heady for the first-time buyer. But understand that auctions are also very much a competitive style sales process. There are few warranties and safety checks, so you have to go into an auction with a cautious attitude.
Tip #2: Do Your Research. Know what you are looking for before you get to the sale. Look at the items being offered in the auction catalog and read trade journals, magazines, etc. to learn more about the features and specifications of the machines being offered.
Tip #3: Look for competitors at construction equipment auctions. Try to arrive early and notice who arrives in what vehicle. If this is a local auction the chances are good that you may recognize some of the construction people who have come to bid on similar items. Pay close attention to logos on work trucks, in order to get an idea of what companies are participating in the sale.
Tip #4: Take A Good Look Around. Once you are physically at the auction, you will have a period of time to inspect the equipment being offered. Use this time wisely. Inspect the machine as intensely as you can. Bring along someone who has worked on or repaired these types of machines, if you can. Talk to the seller is possible and ask polite questions.
Tip #5: Don't forget the auctioneer fees. The price you pay for any used equipment is always higher than what you bid! Depending on the auction house hosting the sales, you will owe a buyer's fee or premium that is either a set fee or has a sliding percentage scale depend upon the final sales price. In the heat of a bidding war, people sometimes forget that they have to pay more than just the announced bid. So always bear that in mind, especially if you are on a tight budget.
Tip #6: Buying machines from rental company auctions. Often heavy equipment rental companies will sell off their inventories in either private sales or auctions. The prices that these machines sell for is often higher than through a similar public auction. But while these machines are often more heavily used than ones from individual owners but they are often better maintained and repaired.
The tips mentioned above will help you when going to construction equipment auctions.
By Lee Anderson
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