As we near the end of spring and approach summer, there will be an increased number of online construction auctions as well as in-person ones happening throughout the country. Online construction auctions are a better way to acquire heavy equipment at affordable prices for industry professionals and construction companies as well. It is always easier to attend construction auctions if you are familiar with how they work, otherwise, you may get overwhelmed.
Understand the terminologies used
Once you have located the next upcoming industrial equipment auction that you will attend, what is next? The first thing you should do is carry out some research on the equipment and the terminologies used during the auction. You need to know the price of the equipment, whether it is damaged in any way, and how well the auction process works. Here are some frequently-used terminologies that you may see or hear during an equipment auction.
Market Value – It refers to the selling price of the equipment in the current market.
Terms and Conditions – Ensure you understand what they are before buying any equipment.
Buyer’s Premium – It refers to any additional cost a buyer is responsible for once they make a final bid.
Understanding the terminologies used in equipment auctions is a crucial part for the buyers to learn before heading to their first auction.
Bidding Tips
You have gotten the piece of equipment you were after, and it has come time to bid for it. What should you do? First, you need to set a budget. If you have a number that you are not willing to spend past, you will avoid overspending. It is not advisable to strategize your bids by beginning with your maximum limit. It is also crucial that you know when to withdraw from the auction.
Additionally, you should always pay attention. It may seem like an obvious task, but spacing out could cause you to bid on items you had not decided to get. Once the auctioneer says ‘sold’, the item belongs to you and it is your responsibility to pay for it.
Stay Calm
Remember that auctions can get intense because of all the bidding noise, so it is best to stay calm. It is possible to end up overpaying for a piece of equipment when you get caught up in the moment, especially with online auctions. Instead of falling into the trap of a bidding war, stay true to your highest bid. If another person outbids your highest price, let the equipment go, and keep in mind that there will be other auctions where you will get an opportunity to get the equipment at your price.