Going to an auction for the first time can be overwhelming. Enjoy the experience a little more with these auction tips for buyers. Attending an auction is an excellent way to get some incredibly good deals on anything from livestock to vehicles or industrial equipment.
If you’ve never attended an auction before, it might seem a bit overwhelming if you don’t know the ropes.
Read on to learn about some helpful auction tips for buyers that will help you find the right used equipment for your business at an unbelievable price. Get ready to bid in confidence!
Set Budget Boundaries in Advance
It can be easy to get caught up in a bidding war, ignoring the fact that your bids are creeping up higher than your budget. Before you attend any equipment auction, set your budget in advance and don’t bid over it.
When you set the boundaries of what you can spend ahead of time, it’s easier to resist the temptations of overbidding. Most auctions require immediate payment via cash or check so if you don’t have the money, you could be in serious trouble.
Sit down and come up with a final budget for every piece of equipment you want to get. This will give you a guideline as to how much you can and should spend, and it will help you stop bidding when numbers get too high.
Speaking of spending money, you should also do your homework before you get tot he auction. Take a good look at what’s being sold and find out if you’re allowed to look at the equipment before bidding begins.
Remember that at almost every auction, all sales are final. You don’t want to end up with a piece of broken equipment that you have to pay to transport home.
Some auction houses allow pre-bidding inspections, which is your chance to take a closer look at everything available. Use this to your advantage and take note of the items you think will be worth bidding on versus things that you should avoid.
Auction Tips for Buyers: Know All the Costs
At an industrial auction or any auction for that matter, the final bid price is not the total price of what you will pay. There will be other charges that could surprise you if you’re not fully prepared.
One common cost of auctions is the buyer’s premium, which is an additional cost usually charged by the auctioneer. This amount is typically used to cover various administrative costs and can range from around 10 to up to 25 percent of your final bid price.
Not only will you be stuck with additional fees, but you’ll also have to pay for the removal and transport of your new industrial equipment. For large items like heavy equipment, you might also have to pay to dismantle them before transport.
You might be able to arrange for dismantling and transport yourself, but always ask the auction house about their policies before you assume. Of course, you’ll also be responsible for other costs like taxes and possible import fees.
Never assume that the bid price is all you will pay. Ask questions and do some research about the possibility of all the extra charges that will be involved. Use that final number to decide if your winning bid will still save you money as opposed to buying new equipment.
Keep Calm and Bid On
When you’re caught up in the moment, you might accidentally bid too much or bid on too many items. Remember that you’re attending the auction for a purpose, and try to keep your goals in mind the entire time.
The reason an auctioneer talks so fast is that they’re creating a sense of urgency for the bidders. Whether you attend a live auction or an online auction, you can easily get excited and feel flustered once the bidding begins.
Do your best to keep your cool and place your bids according to the budget you’ve already put in place. Remember not to get stuck in a bidding war because you’re almost guaranteed to overpay.
Many auctions include a variety of items, including some things you probably don’t need. Stay away from bidding on things that were not in your planned purchases ahead of time. Look for the times when the items you plan to bid on will go live, then only attend the auction during those specific timeframes.
When it comes to bidding on the items you definitely need or want, it’s crucial that you act quickly. You should already be registered in advance as a qualified bidder so all you have to do on the day of the auction is log in or show up.
One of the most important auction tips for buyers is to never get ahead of yourself when you place a bid. Take a deep breath, focus on your goals and your budget, and you should be able to get some equipment for your company at an excellent price.
Make the Most of Your Auction Experience
Once you’ve learned a few important auction tips for buyers, you can prepare for the big event in confidence. Remember to set your budget in advance and get a good understanding of all the costs involved.
Take your time and know exactly what you need, then bid quickly when the time comes. Try not to bid too high or else you could end up overpaying for your new equipment.
Whether you’re a buyer or a seller, visit our website to find used equipment auctions today.