Are you planning to attend an equipment auction? Doing so can be a great way to acquire used equipment for a great deal, but it’s important to know what you’re doing before you start bidding and buying equipment.
To ensure you get the most out of your experience, we’ve compiled our top 23 insider tips for bidding at equipment auctions.
In this article, we’ll cover everything from researching your items to setting a budget and post-auction paperwork…
But that’s not all…
As a bonus, we’ve also included one of the biggest mistakes that beginner bidders make that costs them a fortune.
Let’s get started!
1. Do Your Research
Make sure to research the used equipment available at the auction and get a sense of the market value before placing bids.
How do I research items at an auction?
A great way to research is to attend a preview that many auction companies offer before bidding starts. At the preview, you can take notes and ask questions about any items you’re interested in.
You can also look up similar items online or in magazines to get an idea of what they are worth based on current market value. This can help you to avoid overpaying for items at an auction.
It’s also essential to research the location, the auction itself, and the company that’s running it. Check to make sure they have a good reputation and are known for selling quality items.
Where can I find information about items at an auction before I bid?
- Online marketplaces
- Magazines
- Previews hosted by the auction company
- Local trade shows or conventions
- Other websites which specialize in the sale of similar items
What types of items are usually at equipment auctions?
A wide selection of heavy equipment can be found at auctions. This includes construction machinery, farm equipment, and heavy industrial vehicles.
Note, that some auctions only specialize in specific types of equipment such as construction equipment or farm equipment.
What types of construction equipment can I find at a construction auction?
At a construction auction, you’ll likely find used heavy construction equipment related to building and restructuring, such as trucks and skid steers.
Other types of used construction equipment you can find are excavators, trailers, and tractors.
Who knows, maybe you’ll even find a new equipment truck to add to your fleet. The options can be endless.
2. Set a Budget and Stick to It
Determine how much you want to spend on each item and set your limits before bidding begins so that you don’t overspend.
How do I create a good budget for an auction?
Creating a budget for an auction isn’t just about choosing how much you want to spend. It’s also about deciding what types of items you’re willing to spend on.
It’s worth taking some time to figure out the pieces of equipment that will create the biggest return on investment for you, and what you’re willing to spend for the perceived value.
For example, if an item will quickly depreciate and cost more money than it produces… then it’s best to only give it a small portion of your budget.
On the other hand for items with a higher return on investment, it’s always better to allocate a larger amount of your budget towards them.
Buyers should remember to budget the cost of shipping or transporting and any applicable state taxes
For example, California residents who buy a vehicle in California will pay an 8.75% sales tax. Every California Resident pay has to pay this, but they won’t have to pay again when they register the vehicle with the DMV.
3. Get Familiar With The Auction Rules
Read up on the terms of service, payment methods, and any other information provided by the auction provider before participating in an equipment auction. It’s also important to note any laws and federal regulations as well.
What are some common auction rules?
Most auctions have rules in place to ensure a fair and efficient bidding process. In most cases, these are the most common rules we see:
-
Payment Rules:
Most auctions require payment within a certain amount of time after winning an item or set of items.
-
Age Restrictions:
Most auctions will have some age restrictions in place, and you may be required to provide proof of your age if you want to participate.
-
Inspections/Returns:
Check the inspection terms before bidding, as some auctions may not accept returns or exchanges.
-
Timing:
Pay attention to when the auction starts and ends so that you don’t miss out on any items you’re interested in bidding on. Once a window closes, you may not be able to continue bidding or change your bid.
-
Bidding in whole dollar amounts only:
Most auctions will require bidders to make bids in whole dollar amounts.
-
Bidding Increments:
Some auctions have limits on the bid increments, meaning that you must increase your bid at a minimum of a certain amount each time.
-
Proxy/Automated Bidding:
Automated bidding is often allowed by some auction companies, but it’s important to understand all the rules and regulations before setting up an automated system.
-
Bidders are responsible for understanding all terms and conditions of the sale:
Some auctions may have additional terms and conditions that need to be read thoroughly before bidding. If they aren’t understood, this falls on the bidder.
-
No returning items once used:
Once an item is purchased and used, it generally cannot be returned or exchanged.
-
The auctioneer reserves the right to reject any bid:
The auctioneer is allowed to reject any bid if they feel it is too low or not in compliance with the rules. Specific rules will be stated by the auctioneer during the start of bidding.
-
Items are sold “as is”:
Unless told otherwise, items are sold “as is” with no guarantees or warranties directly from the seller (however, the auction house may provide extra services).
-
Failure to adhere to these rules can result in disqualification from the auction:
And yes, this includes but is not limited to failure to pay or provide proof of identification.
You must read all of the terms and conditions provided by the auction company so that you know what to expect. After all, you don’t want to end up getting yourself into an unexpected situation that can cost you because you didn’t follow the rules.
4. Inspect All Items Thoroughly
Don’t let anyone rush you or talk you into purchasing without inspecting it first. Look for any signs of damage or wear that could indicate problems down the line.
What should I look for when inspecting items at an auction?
Because some items may be many years old, take your time when inspecting items at an auction. You should look for any signs of damage, wear, or tear that could indicate problems down the line.
In general, inspect all connections and cables on electrical equipment and make sure nothing looks frayed or worn out. Also, be sure to check if there are any missing pieces or parts for mechanical items.
If possible, bring a friend with you to help inspect the items so that you can have a second opinion. This will also ensure that no one rushes you into purchasing without thoroughly inspecting it first!
What are signs that I shouldn’t bid on an item?
If you notice any signs of major damage, wear, and tear, or if the item looks like it may need significant repairs, then it’s probably a good idea to pass on it.
Research the market prices and compare them to the bidding price at the auction. If they don’t match up, that could be an indication that the item might not be worth bidding on.
Finally, make sure there are no hidden fees associated with the purchase, such as shipping costs or taxes, to avoid any surprises after making a bid.
5. Factor in Shipping Costs
Make sure to consider shipping costs when determining your bid price, as this can add up quickly and affect how much you’re ultimately spending.
How much does shipping cost at an auction?
Shipping costs will vary depending on the item and where it needs to be shipped. Some auctioneers may offer free shipping for larger items, but for smaller items, you’ll likely need to factor in the cost of packaging and transport.
The best way to ensure that you don’t end up spending more than you thought is to always ask about shipping fees before placing your bid. It’s also helpful to compare prices between different auctioneers so that you can get the best deal.
Who handles the shipping at an auction?
Shipping responsibilities can vary depending on the auction house. Some may offer to take care of shipping for you, while others may require you to arrange it yourself.
Ask about this before participating in an auction so that there are no surprises after making a bid.
6. Know The Starting Price
Be aware of the starting price of each item you plan to bid on so that you don’t inadvertently overbid or place a bid too low. This is also known as the reserve price.
How are starting prices determined at auctions?
Starting prices at auctions are usually determined by the auction house or seller ahead of time. They may take into account market values, similar items that have been sold in the past, and other factors to come up with an appropriate starting price.
7. Watch Your Competitors
While it’s important not to be swayed by other bidders, it’s also beneficial to know what they are doing and what prices they are bidding for specific categories of items.
What notes should I take from other competitors?
Pay attention to other bidders and take notes about the prices they are bidding. This will help you determine if the item is a good deal or if it may be overpriced.
You should also make sure to watch out for signs of bidding wars by other bidders and be prepared with an appropriate counterbid if necessary.
By noticing patterns in how some bidders bid, you can try to use that information when making your bids. For example, do they tend to wait until the last second before placing their bid? Or do they place multiple smaller bids throughout the auction?
What are the best competitive bidding strategies?
The best competitive bidding strategies are ones that allow you to stay within your budget while also getting the items you want. There are several tactics you can use, such as waiting until the last minute to place a bid or making multiple smaller bids throughout the auction.
You can also use various other strategies, such as bidding in increments, proxy bids, or “sniping.”
What are Proxy bids?
Proxy bids are when you set a maximum bid ahead of time and let a computer system place bids on your behalf. The system will automatically increase your bid to match any other bidders up to the amount you’ve specified. This is a great way to ensure that you always stay within your budget while still competing for items.
What is “Sniping”?
Sniping is a bidding tactic where you place your bid right before the auction ends to outbid other bidders. This can be effective if several competitors have been bidding on the same item throughout the auction, as it gives you one last chance to place your bid without anyone else having the opportunity to respond.
However, remember that this strategy is not foolproof, as other bidders may still be able to place a higher bid right before the auction ends.
Ultimately, it’s best to find the strategy that works best for you and stick to it.
8. Take Breaks Between Bids
Don’t let yourself get caught up in the moment and start making reckless bids. Take a few minutes to step away and clear your head before coming back into the auction.
How should I take a break between bidding?
When taking a break between bidding, it’s important to step away completely and clear your head. This could mean going for a walk or grabbing a snack and stepping outside for some fresh air.
If possible, you should also try to make sure that you are not within the eyesight of the auction when taking your break. This will allow you to come back with a clearer mind before making any bids.
9. Place Maximum Bids for Each Item
If you are bidding on an item that is meaningful to you, set a maximum bid that you are willing to pay for it.
How do I determine what my maximum bid should be?
Determining your maximum bid should be based on what the item is worth to you, not what the market price might be. Think about how much you are willing (and able) to pay for the item and set your maximum bid accordingly.
Knowing your maximum bid for each item gives you a sense of how much wiggle room you have during the bidding process. So if the auction is just starting and someone outbids you, you can relax a bit, knowing they will still have to pay more than your maximum bid to win the auction.
This internal knowledge can give you an edge, and your confidence may discourage others from bidding higher and save you money in the long run.
10. Avoid Impulse Buying
Although auctions can be exciting, make sure not to rush into any purchases without being certain of their quality and usefulness beforehand.
Why does impulse buying happen?
Impulse buying can happen for a variety of reasons, such as feeling pressured to make a purchase or wanting to get the best deal.
You are the most prone to impulse buying when you are caught up in the moment and don’t take the time to research or think through a purchase properly.
Remember that auctions typically move quickly, so it’s easy to get carried away and end up with items that you don’t need and regret your purchase later on.
How can I avoid impulse buying?
Truthfully, by sticking to all the tips we have written out here for you.
For example, before attending an auction, set a budget and stick to it. Additionally, be sure to research the item you are bidding on beforehand so that you know what its market value is. This will help you determine if an item is worth buying or if it may be overpriced.
Finally, make sure to take breaks between bids and think through each purchase carefully before making any decisions.
Again, by doing all these things you can ensure that you don’t end up with items that weren’t part of your original plan or pay more than what was necessary.
11. Use Cash When Possible
When possible, try to pay cash instead of credit or check as some sellers may offer discounts for doing so, which could save you money in the long run.
Why do sellers offer a discount for cash at auctions?
Sellers may offer buyers a discount for cash at auctions because it helps them save on processing fees or other transaction fees associated with taking credit or checks.
Additionally, paying cash encourages customers to pay quicker and helps speed up the process by eliminating any potential delays in receiving payment.
To top it off, by using cash you can also keep better track of your spending and increase the chances of staying within your budget.
12. Know When to Stop Bidding
As soon as a price surpasses your budget, don’t be afraid to let other bidders take over.
How do I know when is a good time to stop bidding at an auction?
The best way to know when you need to stop bidding is to set a budget for yourself beforehand and stick to it.
It can be tempting to keep bidding in hopes of getting a better price, but this could lead you into spending more than what you can afford. Knowing when to walk away can help you stay within your budget and improve your chances of success at future auctions.
13. Don’t take things personally
It can be easy to get caught up in the bidding process and let emotions take over, but make sure that you remain level-headed when making decisions and bids.
Why is staying detached while bidding important?
Try your best to remain unattached to items while bidding because emotions can cloud your judgment and lead you to make bad decisions.
When caught up in the moment, it can be easy to make bids that are too high or rush into a purchase without proper research.
14. Have an Exit Strategy
If things are not going as planned or if you’re starting to go over your budget, know when to leave the auction and cut your losses before it gets any worse.
What’s an exit strategy?
An exit strategy is a plan of action that you have in place for when things don’t go as planned.
Regardless of the situation, having an exit strategy in place ahead of time can help ensure that you don’t get stuck in a bad situation.
Be prepared with an exit strategy beforehand so won’t feel more overwhelmed or disappointed than you need to be.
15. Keep Track of Your Bids
Make sure to keep track of your bids so that you don’t accidentally get involved in a bidding war or end up paying more than is necessary.
What is a bidding war?
A bidding war is when two or more bidders get involved in a heated competition for the same item. This can lead to prices escalating quickly and result in someone paying more than what the item is worth.
How can I keep track of my bids?
Keeping track of your bids can be done in a variety of ways. It’s a good idea to have an organized system for tracking the items you are bidding on, as well as how much you are willing (and able) to pay for them.
Some people prefer to keep a written record of their bids, while others may use software or a mobile app that helps them stay organized and updated on the latest happenings at the auction. Whichever method you choose, always make sure that all your bids are accounted for and tracked properly.
16. Ask Questions
If you have any questions about a particular item during the auction, don’t hesitate to ask the seller or auctioneer for clarification.
What are some of the best questions to ask before bidding?
- “What condition is the item in?”
- “What is the return policy for this item?”
- “Does it come with any additional accessories or warranties?”
- “Are there any hidden costs associated with the purchase?”
- “What happens if I can’t pick up the item immediately after winning?”
- “Is the item been tested recently?”
- “Is there any additional paperwork that needs to be filled out before purchasing?”
- “What is the estimated shipping time on this item?”
- “What payment methods do you accept?”
17. Consider Online Auctions for More Convenience
In addition to traditional auctions, look into online options which may offer access to more items and better prices.
How is an online auction different from a live auction?
An online auction is a process of buying and selling goods or services through an online platform. This type of auction can be held simultaneously with other live auctions, allowing for increased competition and potentially lower prices.
Note that online and live auctions generally follow the same process and rules and are also regulated by the same laws.
What are the benefits of bidding at a live auction?
The benefits of attending a live auction include the opportunity to get a firsthand look at the items you are considering bidding on, as well as the chance to interact with other bidders in person.
Additionally, being present for the actual auction can help give you an idea of how quickly prices tend to rise in live time and which items are drawing the most interest. This can be invaluable information that will help inform your decisions when it comes time to place bids.
What are the benefits of bidding at online auctions?
Some benefits of bidding at online auctions include:
- the ability to browse a larger variety of items from the comfort of your own home;
- access to better prices due to lower overhead costs for the seller; and
- greater convenience as you don’t have to physically be present at the auction.
Online auctions may also offer more payment options than traditional auctions allowing you to pay with credit cards or other digital methods such as PayPal or Venmo.
To top it all off, with online auctions, you can usually make faster purchases when there is no need to wait in line or wait for bids to close.
How can I make sure online auctions are legit?
When bidding in an online auction, always make sure to do your research and ensure that the site you’re using is legitimate.
A few things you can do are:
- Read through the terms and conditions.
- Check out customer reviews.
- Look for any red flags, such as hidden fees or exorbitant shipping charges.
Finally, be sure to confirm that the website or auction platform has a secure payment system in place before entering your credit card information and trying to buy equipment.
18. Don’t Get Discouraged
If you lose out on an item at one auction, just remember that there will be other auctions coming up with new opportunities for great deals!
How can I keep an eye out for new auction opportunities?
One way to keep an eye out for new auction opportunities is to follow online auction sites, such as eBay or BidSpotter, and sign up for their newsletters or alerts. This will ensure that you are always updated on the latest auctions and don’t miss out on any great deals.
By networking with the right people and potential sellers, you can spot equipment for sale before most people know. Always research those who want to sell equipment to you and never share personal information before ensuring the credibility of the seller.
19. Utilize Bidding Software
Many online bidding platforms provide software tools that can help you keep track of bids and prices in real time.
How does bidding software work?
Bidding software is a tool that can help you stay organized and up-to-date on the latest bidding activities at an auction.
It can provide real-time updates on current bids, prices, and trends to ensure that you are always one step ahead of the competition. It also helps automate the process by allowing you to set up automated bids so that you don’t have to manually enter each bid every time.
What are the advantages of using bidding software?
The advantages of using bidding software include increased efficiency, improved accuracy, and greater control over the bidding process. Bidding software can also help ensure that you don’t miss out on any opportunities or get involved in a bidding war by accident.
Seasoned bidders know that by having access to real-time data on prices and trends, you can make informed decisions when it comes to placing bids.
What are the disadvantages of using bidding software?
The main disadvantage of using bidding software is that it can feel intimidating or overwhelming for those who are not comfortable with technology. Additionally, if you don’t have access to the right data or fail to use the software correctly, you could end up missing out on great deals or making costly mistakes.
20. Network With Other Bidders
Get to know other bidders in the auction, as they may be able to provide valuable insights into the items up for bid. This can help you make more informed decisions and possibly get better prices on items.
What are some of the best ways to network at auctions?
The best way to network with other bidders at auctions is to take the time to introduce yourself and get to know them. Ask questions about their experiences with similar items or what they think of certain pieces being offered, as this can provide invaluable information that will help you make better decisions.
You should also keep an eye out for any auction frequents who may be able to give you additional tips and advice based on their own experience. It also helps to exchange contact information with fellow bidders in case you need advice or assistance during the bidding process.
By networking with other bidders, you can build relationships that may come in handy down the line when looking for great deals or special items at future auctions.
But don’t forget to follow up after the auction has ended and thank those who have helped you out!
21. Take Advantage of Pre-Auction Services
If available, make sure to take advantage of any pre-auction services that may be offered, such as previewing items ahead of time or having inspections done by a professional beforehand.
What types of pre-auction services are available?
The types of pre-auction services that may be available depending on the auction house, but generally, a good auction house will give you the chance to preview items before the auction begins or have a professional inspection done beforehand.
These services can help provide additional information about an item’s condition and ensure that you are making informed decisions when placing bids during the actual auction.
In addition to pre-auction services, some auction houses may also offer online bidding for those who are unable to attend in person or would prefer to bid remotely. No matter which services are available, make sure to take full advantage of them when possible as they can help increase your chances of success during the actual auction.
Are there post-auction services?
Yes, some auction houses may offer post-auction services such as transportation and installation of large items or other assistance in transporting your purchases. Be sure to check with the auction house before bidding if you need any additional assistance after the auction has ended.
In addition, some auction houses may also offer warranties or guarantees on items that have been purchased. This can help provide extra peace of mind and assurance that you are getting a quality product.
22. Stay Informed
When it comes to equipment auctions, the more informed you are the better. Make sure to stay up-to-date with any new information or changes that may be announced before and during the auction so that you don’t miss any important details.
Where can I find reliable news and updates for an upcoming auction?
The best places to find reliable news and updates for an upcoming auction are usually the auction house’s website or social media accounts. Here you will be able to find the latest info on any changes, new information, or announcements related to the auction that you should be aware of before attending.
If an auction house has an emailing list, it’s always beneficial to sign up for it as they often inbox newest listings to their email list.
Additionally, some websites may also provide general tips or advice on how to bid and win at auctions that can help prepare you for the event.
By staying informed, you will be able to make more informed decisions and have a better chance of success when bidding at an equipment auction.
23. Be Prepared to Pay
Once the bidding is over, you’ll be expected to make payment in full within a certain amount of time. Make sure that you have enough money available so that you can pay on time and avoid any late fees or other penalties.
How do I pay for my items at an auction?
Most auctions will require you to pay by cash, credit card, or check. Some may also accept wire transfers or other methods of payment.
Ask what the payment methods are before participating in an auction so that you can be sure to have the money available when the time comes.
Can I finance my auction items?
Some auction houses may offer financing options for larger purchases. Make sure to ask about any available financing options before bidding so that you can properly budget and plan for the cost of the item if you win.
Financing at an auction is beneficial because it allows you to purchase items that you may not be able to afford upfront. This can also help spread out the cost of the item and make it more manageable over time.
Additionally, some auction houses may offer special deals or discounts when using their financing options, so this is something to keep in mind if you are looking for ways to save money on your purchases.
Bonus Insider Tip
Don’t Display Too Much Interest
When bidding, remain cool and collected, and do not show too much interest in any particular item.
Why does showing too much interest cost bidders hundreds?
Displaying too much interest in an item can let other bidders know what you are willing to pay for it and could encourage them to bid up the price.
If you seem overly excited about a particular item or show that you have set your sights on it, other bidders may be more inclined to bid higher than they otherwise would, as they will think that they are competing with someone determined to win it.
Avoid making any sudden movements or gestures when bidding, and remain cool and collected throughout the auction process so as not to tip off other bidders.
This is especially significant when bidding at live auctions where you can see other bidders and can make decisions based on their body language. By remaining calm and composed, you can help ensure that you don’t end up paying more than necessary for an item.
Conclusion
Attending a heavy equipment auction can be a great way to find high-quality items at discounted prices, but it’s also wise to be familiar with the process and go in prepared before you start bidding.
From researching the items ahead of time and networking with other bidders to staying informed about upcoming auctions and taking advantage of pre-auction services and post-auction services, following these steps will help ensure that you are fully prepared for the auction so that you can get the best deals possible.
