Contractors Hot Line is part of the Catalyst Communications Network publication family.
Contractors Hot Line is part of the Catalyst Communications Network publication family.
Selling equipment takes on many forms, but one of the tried-and-true ways to realize the highest value for used machines is at heavy equipment auctions.
Among the reasons that auctions offer a unique opportunity include:
Insights From JJ Kane
Are you updating your fleet with new vehicles and equipment? Instead of jumping straight to trading in with a dealer, check out these reasons to sell your used trucks and construction equipment at an auction:
Maximize Your Profits
When you trade your vehicles or other equipment with a dealer, the dealer must sell your trade-in and, of course, they’ll aim to make a profit. This means dealers might offer you less than what your vehicle is worth so they can make a profit when they sell your trade-in. With a public auction, competition and the market determine the prices, leading to a higher return.
Some auction houses, like JJ Kane, host exclusive online timed auctions, bringing convenience to buyers and sellers alike. Premier timed auction locations are strategically located across the United States and staffed with associates who can help buyers preview and inspect auction items. Bidders can ask questions and inspect and operate equipment in person before placing their bids online.
Because some online auctions have a bidding window of five to seven days, sellers can increase the visibility of their items, encouraging more bidders and more profits.
Have Cash on Hand When You Buy
When you sell your vehicle at a JJ Kane auction, you’ll typically have the cash from your sale in your pocket within three weeks to put toward your new purchases.
With cash on hand instead of an unknown trade-in value, you can better plan for your purchase knowing what your down payment will be before entering a dealership. You can also source independent financing with that cash on hand, getting more control over your financing and terms.
Insights From Jeff Martin Auctioneers
1. Inspect the Machinery
Whether online or in-person, inspecting machinery is crucial. Online platforms might offer detailed inspection reports. When on-site, take the time to operate the machinery and look for signs of wear and potential issues. Look for structural integrity, including any cracks, corrosion, or worn components.
2. Data Analysis
Understand the auction's inventory and how many similar machines are available. Evaluate the machine's hours, condition and associated costs, such as transportation, taxes and fees. Consider environmental standards and government fees, especially when buying across borders.
3. Market Price Evaluation
Research the price range of similar items. Consider looking at models slightly above and below your target to understand the price variation. Factor in typical repairs, operating costs and the seller's reputation for maintaining equipment.
4. Business Alignment
Ensure the machinery aligns with your business's needs. Consider the advantages of sticking to one brand for easier maintenance and repair. Stay updated with technological advancements in equipment to optimize fleet management.
5. Know Your Limits
Set a maximum bid and stick to it. Be aware that live auctions can be intense and exciting, which might lead to overspending.
Live Bidding Tactics
1. Eye Contact
Maintain eye contact with the auctioneer or ring man. This establishes your identity and ensures the auctioneer recognizes your intention to bid, no matter your position in the room.
2. Stay Connected
Once the auction begins, maintain your connection with the auctioneer or ring man. Use hand gestures or bidding catalogs to communicate your bids efficiently.
3. Bidding Timing
Enter your bid strategically. Making an offer too early or too late can affect your chances. Midway through an auction is often a good time to start bidding, especially for used heavy construction equipment.
4. Keeping Track
Recognize when to stop. If you've reached your budget, indicate to the auctioneer that you're out. A simple head shake or signal can convey this effectively.
5. Be Sharp
Auctions require quick decision making. Understand your interest level and budget for each item beforehand to make informed, rapid decisions.
With these practices and strategies in mind, you can become a savvy and successful bidder at construction auctions, making the most of the opportunities available while managing risks and costs effectively.
EQUIPMENT AUCTION RESOURCES