Tag Archives: heavy equipment auction

How does Auction Companies work for heavy equipment? What do they charge?

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When you do not need the services of your heavy equipment, you got to get rid of them. There is no point in keeping the machines with you and see them getting rusted during different seasons. Now there is a smarter way to get rid of heavy equipment and that is by selling them in auction. So while you put them up for auction, you generally give them the minimum price to start and it takes up from there. People will place their bids on the item and the guy with the highest bid will eventually become the new owner of the machine. It is no big deal to locate a company that is into selling heavy equipment through auction. In fact, you will come across many companies that see this business with huge potential and with larger margins for profit. So finding a company who can help you to do away with your old heavy equipment is no problem.

Get all machines at one place:-

Auction of heavy equipment is more like an exhibition. It is not just your machines that will be slated to get auctioned on a particular day but heavy equipment belonging to many other people will be put on sale on that day. So these companies if they are selling it offline then they advertise about the mega event where they rent a huge place to put up your construction equipment and invite people who belongs from the construction or mining industry. The invitation happens through ways of advertisement, cold calls and online registration. So once people gather at the venue, the auction begins and they bring each equipment at a time. The possibility of a construction equipment not getting sold exists but the larger possibility is that it may get sold off quickly out there than any other forum.

Online auction companies:-

There is also good number of auction companies who deals exclusively on the internet. They make members by asking them to register on their site and then use the site for buying and selling heavy equipment. So a person who is a buyer can also become a seller using the same User ID. He need not change any of his details to sell anything especially when his prior transactions were restricted to only purchases.

Different auction company charges differently:-

The seller has to pay good chunk of money to the auction company to sell his machines. Firstly, some auction companies charge money for registration. It may vary from few hundreds to thousands of dollars. It also covers the listing cost. For offline auction, they do charge for using their services to auction the machine. The amount may be minimal for putting the machine on auction but if it sells of, they may charge from 2% to 10% of the sales price. Sellers take advantage of both the platforms to sell their heavy equipment. Online auction companies charge not only for listing the item but also for enhancements like making the description part look more attractive or to just put a star on the listing which makes it a bit catchy. Any additional feature will cost the seller more and therefore one needs to first understand the costing before going for it.

Repo heavy equipment can be bought at a lower price

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Be it for business or for personal use we are often reluctant to buy expensive items as it can put us into a financial mess. In order to buy expensive equipment a lot of planning needs to be done in advance. A company needs to set up a strategy where they will allocate funds to buy items needs for business and then will spend accordingly. They will never want to move an inch away from their budget but will do so only if it really requires. It is however tough to follow a stringent budget but does small companies really have an option. The answer is no.

In the construction sector, small companies have a hard time in dealing with their finances when it comes to buying heavy equipment. Heavy equipment are expensive items and small construction companies normally have to hunt for lenders who can lend them money to buy the machines. If the business runs the way it is expected then the company can pay off the loan without any hassle. But the reality is always different from what we plan and if your business does not perform the way you have expected it to then you are encountered with more grave issues. If you are unable to pay the monthly installments of your heavy equipment in time then the lender has every right to repossess the heavy equipment from you and sell it in auction.

Having said this, there is also a flip side to the entire episode. There are definitely lenders who have lend money to plenty of small construction companies and contractors and out of the many there may be few who could not end up paying the money. Quite evidently, their heavy equipment are repossessed by the bank and this gives you the opportunity to become a part of the auction and buy the machine at a dirt cheap price. Now the challenge here is that you will not be informed about such auction via any media. It does not come in newspaper or any such media. People want to keep it as clandestine at they can so that less people turn up at the event and the ones who are there can buy more machines at a cheaper rate.

What you got to do is keep your eyes and ears open to such auctions. You can even approach one such lender whom you know deals with lending money to small construction companies. They will be in a position to tell you if they will carry any auction in the near future. The next reliable source is the guys who tow heavy equipment from the borrower. They might give you a brief idea about the venue and the date.

Heavy equipment that are repo by banks are sold at a far cheaper rate. This is done so that the banks are able to recover the money that they have lent and do not run into loss.

Top 4 Advantages of Heavy Equipment Auction Online

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Like all other internet auctions, online heavy equipment auctions can keep away the excess spending and inconvenience related with the selling and buying of the equipment. These kinds of auctions basically have two different choices of the seller and the buyer: either be at a sale at an online site which may take some time or take part actively in an online equipment sale. As the former one is time consuming not even giving any guarantee of a successful financial transaction, most of the business owners opt for the online auction of the equipment. Absolute benefit to all Many websites have now been developed to sell heavy equipment through either direct sell or online instructions. One can use this medium and post the photo and the details are posted on the website so that the prospective buyers all over the world can know everything they want to know about the equipment. The buyer can see the ad until the sale is complete. It also means that the equipment doesn’t have to be transported from one location to the other. The buyers can also look in other websites for getting their desired equipment without going from one store to the other. Most of the heavy equipment auctions dealing companies take in the potential risks associated with this type of selling assuring the vehicles given is representative of any kind of starting proffer and description. Benefit of the seller While doing online auctioning, sellers will definitely make some arrangements regarding inspection of the equipment by an affiliated appraiser. This minimises the risk of equipment being sold with wrong info so as to avoid any further risk of the site. After the post becomes visible to the viewers, action of bidding can make it in the website. The sellers sometimes list their ad under the section “buy now”. Both the types of ads bypass the process of bidding and give permission to the seller to provide vehicles through direct sale. Benefit of the buyers Online heavy equipment auctions are a perfect streamline through which the buyer can find out essential heavy constructional equipment which will allow access to the listed vehicle from any part of the world. The sale is designed to be done by proxy with the automatic increase of counter bid to an already decided amount. A buyer is not compelled to sit in front of his computer during the whole process of bidding but still will have the chance to get the maximum bid. Many buyers want to enjoy the live auction online. For them the owners of the equipment sites sometimes arrange live simulcasts of their products. Completion of the transaction After the successful completion of the sale, the owner of the online equipment company looks after the transfer of the funds and the titles. There are some companies which offer guarantee by providing financial assistance as well. The payment involved in these kinds of sales are generally cost effective compared to conventional approach of the sale through a third –party.

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