An auction can be one of the best places to buy wheel loaders, excavators, as well as other construction equipment. This is perhaps why auctions like Ritchie Bros, in Orlando, tend to draw huge crowds throughout the year. Now you are able to purchase second hand construction equipment at online auction sites like Surplus.net.
It should be noted that there is some risk involved in purchasing construction equipment at an auction. However, there are a few tips that I would like to pass on to you, that is going to minimize such risk and ensure you only get the best.
You will want to check with the auction rep or yard to see if it is possible to have a mechanic inspect any equipment prior to the start of the auction. In many cases, it is possible to fix up a bad-looking piece of machinery with some fresh paint. You will want your mechanic to look over the vitals which will include any potential signs of wear and tear such as rust, leaks, and cracks.
If possible, you will want to try and test all equipment and listen for any unusual sounds. If you are unable to check any of the machinery, at least inspect it with a mechanic the day of the auction.
On the other hand, do not think a fresh-looking piece of machinery would be free of problems. In many situations, a new coat of paint simply means that the owner was proud of the equipment and is simply wanting the highest bid possible. Regardless, you will always want to inspect regardless of the outside look of the equipment.
You will also want to obtain as much documentation on the machinery as possible, such as maintenance records and other documentation. If you happen to notice that the machinery had the same type of service performed several times, this could indicate a serious problem.
If you are interested in bidding on Volvo equipment, you may want to consider a MATRIS download on the specific equipment from the auction rep. This unique report available from VOLVO equipment will allow you to get an in-depth look at the operation data and behavior from the machinery.
Research the seller, so you will have a much better understanding of how the equipment had been used. This is one of the best ways to gain a better insight into the overall condition of the vehicle as opposed to what you may find in the auction’s report.
An example of this would be the review of two excavators with very similar features and hours. One of them may have been used by a quarry contractor while the other was used for earthmoving. In this case, the vehicle used for earthmoving is going to have much less visible wear and tear as opposed to having comparable hours of use.
Additionally, various rental companies are going to have unique standards of maintenance for their fleets. It is always wise to take your time and do your homework.
It is best to find out the prices and cost of similar models of equipment that have sold at auction as well as new models. Additionally, understand why they sold at that price including condition and age. Take some time to search other pricing outliers.
It is actually not that difficult to find sale prices of construction equipment from recent auctions. It is possible to register an account with Ritchie Bros and search the selling prices of all auctions from the past 24 months. With this data, you can review your bidding parameters.
Also, remember that the dollar amount from the winning bid is not the only auction cost. There may be buyer’s fees as well. You will want an estimate of how much it is going to cost to transport the vehicle from the auction to your location. If the vehicle is going to cross international borders, there will likely be an export fee as well.
Last but not least, you will want to have financing considered well before the auction. In many instances, an auction will require full payment within a matter of days.