As we head through spring and into summer, there will be many more in-person and online construction auctions happening all over the country.
Online construction auctions are an easy way for construction companies and industry professionals to acquire used heavy equipment at an affordable price. However, construction auctions can be overwhelming if you are not familiar with how they work.
We have put together some tips to help make the equipment auction process a little easier for first time auction buyers!
Understand the terminology
You have found the next upcoming equipment auctions you plan on going to. What’s next? First, you want to start by doing some research. This is important because not all surprises are good, this means you want to know how much the equipment is worth and if there are any damages, as well as how the auction process works. Below is some common terminology that you might see or hear during an auction:
Market Value - What is this piece of equipment selling for in the current market.
Terms and Conditions - Be sure to understand these before buying.
Buyer’s premium - this is a cost that the buyer is responsible for in addition to their final bid.
Understanding industry terminology is one of the most important things all new auction buyers should learn before going to their first auction!
So you have found the piece of equipment you were looking for and now it’s time to bid; what do you do? The first thing you need to do is set a budget! Knowing the maximum amount you are willing to spend will prevent you from overspending. It is not recommended to strategize your bids by starting with your maximum amount. It is also imperative that you know when to pull out of the auction.
Another tip is to pay attention, while this may seem like it is obvious, it is not. Accidentally spacing out may cause you to bid on the wrong equipment. As soon as the auctioneer says the word “sold” the equipment is yours and you are responsible for paying for it.
Lastly, although auctions can sometimes get intense with constant bidding and noise, it’s so important to stay calm. During an online construction auction, it can be easy to get caught up in the moment and eventually overpay for a piece of equipment. Instead of getting caught up in a bidding war, it’s vital that you stay true to your highest price. And if someone outbids your highest price, you just have to understand that there will be other auctions and opportunities for you to stay true to your budget. Just take a deep breath and move on!
Empower your auction company
InnovA allows all equipment auctions to liquidate a large fleet at once or just a few pieces of equipment abd strives to make the process headache-free for both buyers and sellers. Schedule a demo with us below.