With the costs of new construction equipment pieces being incredibly large, buying what you need for your business used is a much more logical option for most small business owners. However, buying at an auction also means you have to be an educated buyer so you get the best deal for the money you have available to invest in a piece of equipment. Because auctions can be so exciting and filled with adrenaline in the heat of the bidding moment, you must step into the location with a clear thought process. Check out these four things you should do before you head to a construction equipment auction.
Research the values of similar pieces. - The costs of the auctioned equipment may be considerably less than what you would pay for a new piece, but there is always a chance the bids could go higher than what a piece is actually worth. Therefore, before you head to the auction, do your research and find out what used pieces you may be interested in are going for elsewhere.
Talk to your lender or financial advisor. - You will need to know up front at the auction how much you can spend for a certain piece of equipment. So talk to your lender or business financial advisor to see how much of a loan you can obtain or how much money you have available for investment. You will be expected to pay for the item soon after the close of the auction.
Find out about different equipment accessories. - Along with the large pieces of equipment at the auction will likely be some separate accessories available as well. For example, there may be a backhoe auctioned and several separate attachments that are auctioned individually. Look into the equipment you plan to buy and see what attachments are available that could very well come up for bidding. these auctions can be an excellent opportunity to get everything you need for a specific piece.
Arrange for transportation. - Unlike buying small items at auction, when you purchase a large piece of equipment, you will have to go to great lengths to have the piece relocated to your business property. Some auction houses may offer delivery services, but most will require the buyer to arrange for their own transportation of the purchased items. Furthermore, you may only have a limited time frame, such as a few days, to pick up your item once it has been paid for after the auction.
For more information, contact companies like Rod Fivecoat Auctions.
