When large companies have surplus equipment, you can bet plenty turn to auction houses to get that machinery off the books. Auctions can be a great resource for companies of all sizes to add to their inventory of large equipment at low prices. There are many things, however, to be taken into consideration when buying equipment at an auction.
If you’ve never bought heavy machinery at an auction, you’re probably wondering whether or not an auction is a good place to purchase such equipment. After all, is there any guarantee that the product will even work once you get it home? And will there be any type of warranty provided?
The answer to both is, sometimes. Many auction houses sell much of their lots “as is” and often with no extra warranty implied or given. This makes the pre-auction inspection and the reputation of the auctioneer so crucial.
So you need a new backhoe or trencher or any other large piece of machinery. Here are a few things to keep an eye out for when you get to your auction.
How old is the equipment?
Consider the age of the equipment you’re interested in bidding on. When you are looking at the age of heavy machinery, you must also factor in how many hours it has been used. The older a piece of equipment is and the more it has been used, the more likely it could need replacement parts and repairs in the near future. This isn’t to imply that the equipment isn’t worth purchasing – but the older and more used it is, the less amount of money you should spend on bidding for it.
Also to keep in mind when looking with age of the equipment is the length of the original factory warranty. There could be a chance with a newer piece of machinery any problems you can encounter after purchase could be repaired under warranty.
How was the equipment used?
If a piece of equipment was used frequently but very lightly, that counts for a lot in value. Equipment that has been used a lot in extreme conditions and with rough handling should be more carefully inspected. If there is no information in regards to the usage and history of a piece of equipment, you will of course be bidding at your own risk. It’s always best to bid on heavy equipment for which you know the history and usage.
How easily can I find parts for this machine?
Even the best-cared-for machines are going to have problems somewhere down the line. Do some research. The more popular the brand of equipment you’re buying, the more readily available parts and qualified repairmen will be when your equipment eventually needs either.
Before you dish out the big bucks at a heavy equipment auction, make sure to keep the above mentioned questions in mind. Auctions are great for getting great deals on heavy equipment, but you have to use common sense.
See our upcoming auctions for our next quarterly heavy equipment auction.
