Purchasing wheel loaders, excavators, and other heavy equipment at auctions provide a great opportunity to source a high value for your money by finding a quality machine. This is why auctions are very attractive to investors and managers alike. But still, you have to be aware that there are some risks involved when buying equipment at auction. So, here are some helpful tips to help you emerge successfully. It mainly refers to doing research in three major aspects: machine, seller, and cost.
Researching the equipment
This can be done either through your auction representative or the auction yard itself. Either way, you need to have an inspection of the equipment first before bidding in the auction. This is crucial to check for any signs of major wear and damages like leaks, rust, and cracks. If possible, it’s best to test the machine to know how it works or operates. Remember that fresh paint can hide the true age of the machine. So, don’t judge it by how it looks. Do a thorough inspection and testing, if possible.
Researching the seller
One good feature about equipment auctions is that you can look for information about the seller. The auction report provides some important information that you can read which can help in your decision. For instance, if you are considering two excavators with the same features, sizes, and hours but are owned by different persons or entities, then knowing the seller is a big concern. For example, if one machine is owned by an individual who does earthmoving and the other is by a quarry contractor, then the former may have equipment that experiences less wear and tear.
Researching the cost
Knowing what is being accounted for in the final price of equipment at auctions is crucial so that you can make a comparison among similar makes and models. Finding the sales price for heavy equipment is now easy because of the availability of information online. Lastly, consider financing before the auction. It is not uncommon in equipment auctions to require payments be made first.
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