4 Common Mistakes To Avoid During An Equipment Auction

For businesses looking to purchase machinery at a bargain price, equipment auctions are a great market channel to meet their requirements. When bidding in an auction organized by a professional auctioneering company, buyers are likely to get excellent deals on various heavy machinery. However, there are a few mistakes that new bidders make that are best avoided for a profitable venture. 

 

Here are 4 such mistakes that need to be avoided

Lack of Proper Research

Be it online or offline, auctions tend to happen fast and judgment calls need to be made quickly. Hence, it’s vital to conduct all research beforehand, which generally falls into two categories. The first aspect is internal, wherein a business will evaluate and determine what their exact need or application is. Once this is ascertained, prudent business owners should then research the market to learn more about different equipment that might match their requirements. Thus, before attending an auction, this preliminary research must be conducted thoroughly. 

Being Unaware of Hidden Costs

This is a mistake that many new buyers tend to make, as they are not aware of hidden costs like buyer’s premium or regional taxes. For the uninitiated, a buyer’s premium is a fee that is added to the hammer price that acts as a commission to the auctioneers. Generally, it can fall anywhere from 10 to 20 percent of the hammer price. 

Taxes, on the other hand, might depend on each state. Hence, it’s vital to do due research on these topics as well. 

Lack of Thorough Inspection

This is absolutely vital before making a purchase. Any heavy equipment that is to be purchased should be thoroughly inspected for damages, repair, and the various documents, maintenance logs and other information should also be examined. As an additional step, it’s also crucial to ascertain that all parts of the machinery are intact and in case they aren’t, ensure that they are still available for purchase on the market. Some of the equipment might have obsolete parts hence it’s fundamental to look into this beforehand. 

Not Factoring in Transportation Costs

When attending an in-person auction, it might turn out that the heavy equipment will need to be dismantled and transported. The cost of organizing this will also fall on the buyer, hence it is also an additional cost that needs to be borne. Therefore, businesses should also factor this into their budget. 

Ultimately, by being aware of these 4 pitfalls, potential buyers can easily avoid these mistakes and get an excellent bargain. 

Experts in business liquidation, equipment appraisal and conducting industrial equipment auctions, we at Infinity Asset Solutions have decades of experience to back up our extensive knowledge. Contact us today to learn more about everything that we can do for you.