Heavy-duty vehicles are valuable assets for any company; however, they are also a very costly investment. Businesses wanting to avoid the enormous expense of purchasing these vehicles new can buy used trucks from heavy equipment auctions. The biggest advantage of purchasing something from in this fashion is that the price of the item is dictated by the bidding process, so there is a good chance of finding a great vehicle. It is important to keep in mind that there is about a fifty-fifty chance of getting a bargain price for a vehicle in this fashion; therefore, to increase the odds, it is critical to be well-prepared before attending such an event. Following are a few tips to help learn this process.
- Trial Run – For those who have no experience in making purchases using this method, the first thing to do is learn how this process works by attending several heavy equipment auctions as a spectator. By doing this, the way this system functions can be experienced and the different methods that each bidding house implements can be experienced without feeling the pressure felt when actually making a purchase.
- Secure Financing – Unless the plan is to pay cash, securing financing necessary to complete a sale must be ensured before entering the bidding process. Some auction companies may have connections with certain financial institutions to make such a process more convenient for customers; however, it would still be wise to do personal research on finding a lender that offers a much lower interest rate.
- Set a Budget – When participating in an auction, it is easy to get caught up in a bidding war and forget that the original purpose for going to such a function was to purchase an item for a bargain price. To prevent such a thing from happening, a limit should always be set as to the maximum bidding amount before the event begins. No matter how great an item may be, it is important to learn to step back once that set limit has been reached.
- Determine Specifications – When shopping for a heavy-duty vehicle at an auction, knowing what specifications to look for is important. After all, it would be very unwise to pay thousands of dollars for a bucket truck that does not have the right boom length to get the job done. Therefore, it is imperative to have all the necessary data available for the jobs that will be performed, such as the capacity, boom length, etc., before bidding.
- Hire a Mechanic – When investing in an expensive piece of equipment, it should be ensured that the vehicle is in good working condition. Most auction companies give bidders an opportunity to inspect each unit to be sold before the event begins. A mechanic can provide recommendations based on these inspections as to which pieces of equipment are worth bidding on and which ones to avoid. This is extremely important as vehicles purchased through an auction are generally sold “as is, where is.”
- Value the Vehicle – To make sure of getting the best vehicle for the money spent, it is important to know the value of a vehicle based on its current condition. A Kelly Blue Book can provide a reference to thousands of items, including heavy commercial equipment. In order to get a good deal, the final bid on the equipment must be less than what is in indicated in the book.
- Find Good Auction Company – The last but maybe the most important thing to be done is to find a reputable auction company. This is particularly important because not all of every one of these businesses is as conscientious to clients as another. Some have dummy bidders in the crowd to raise the bids, while others may falsely advertise items for sale; find one with an excellent reputation. Before actually bidding on any items at one of these sales venues, it would be wise to attend a sale as mentioned above just as a spectator to observe the operation of a particular vendor.
Before participating in any heavy equipment auctions, it is important to recognize the fact that not every purchase will end up in favor of the buyer. Proper preparation is always the key to increasing the odds of ending up with the best deal possible. Hopefully this article has provided some helpful pre-auction tips as to how to prepare for such events prior to the start of such a unique sales event!