Debunking 3 Major Myths about Equipment Auctions

Commercial equipment auctions are a great way to secure key machinery for your business at a reduced cost in comparison to buying brand new. Such auctions also allow individuals looking to get rid of their machinery the opportunity to maximize their return on prior investment. While the pros seemingly appear to outweigh the cons, prospective buyers and sellers still tend to keep their distance from auction events. Why? It appears there are several misconceptions about these auctions that deter them. Today we intend to deconstruct the validity of these myths in order to justify the ways in which equipment auctions offer the potential for mutually beneficial outcomes for both buyer and seller.

 

Myth #1: The Equipment at Auctions Are Over-Priced Junk

This is one of the largest misconceptions used to deter prospective auction buyers. Often the equipment at auctions are not auctioned off because they are junk – but are more likely due to a business going under and liquidating. These items tend to be well-maintained and in good working order. Reputable auctioneers also offer a level of transparency as per their valuation process. Equipment auctioneers are highly experienced with regard to industry knowledge and equipment appraisals. They utilize a number of resources to ensure the equipment in question is valued at a fair price.

 

Myth #2: Auctioning Off Used Machines Isn’t Worth the Time or Money

If your company is liquidating and you’re looking to get the most for your equipment, auctions are definitely worth the time and money. Why? Auctions ensure you are maximizing the potential for how much you could get for your equipment. The competition provided by multiple buyers can potentially offer a better financial return than just selling all your equipment to one buyer.

 

Myth #3: Auctions Only Benefit Either the Buyer or Seller

The financial benefit of the purchase and sale of auctioned off equipment is not a one-way street. Rather the experience can be highly rewarding for both parties. The Seller is looking to get the best offer for their machinery and the Buyer is looking to invest in a piece of machinery that will provide long-term benefits in tandem with their business goals. Rarely is it ever the case that one party benefits from the sale of a piece of machinery.