It comes as no surprise that COVID-19 has disrupted our lives in more ways than was ever imaginable, and as COVID-19 continues throughout the United States, small to large companies are finding themselves in economic distress and having to make tough decisions.
While warehouses shut-down, manufacturing slows and even the construction industry finds itself in a slow season, companies can find themselves asking, “should we liquidate our assets?”
Heavy equipment liquidation is quite common in the auction industry. Construction, manufacturing, industrial and other industries can liquidate their fleets and unused machinery to help with finances.
Liquidation is commonly known to happen for one of two reasons: the company is restructuring or it is financially struggling. The most common reason that our company handles and sees liquidation of heavy machinery is because the company will be shutting its doors down for good.
A great way to get as much money back as possible is to sell at an equipment auction! Lyon Auctions has held heavy machinery liquidation auctions many times, and while they are a bit different than traditional auctions, there are some main benefits of heavy equipment liquidation auctions!
1. Clear up inventory
One of the biggest reasons behind a heavy equipment liquidation auction is to clear all of the unused equipment or get rid of all your equipment in one auction. Any items that are sitting idly and collecting dust should be added to the list. Whether it be online or on-site, Lyon Auction buys all the equipment and can easily clear out your inventory with no hassle!
The best part about this type of auction is that the preparation is virtually the same! The same information will be needed as a regular auction and the same goes for the preparation of the equipment as well.
It is imperative that all titles are ready, warranties are present, the maintenance logs have been updated and prepared, the equipment is cleaned and appraisals are in order to ensure there is a profit margin made back at the end of the auction!
3. Get more back from liquidation value
The Small Business Administration states that the average return of liquidation assets is 20 percent below average margins. To help ensure that your company reaps the full benefits of a liquidation auction, make sure to have all equipment whether it be new or used appraised!
Another note to consider - did you lease any equipment? If so, double-check with the company that you leased the equipment from and verify how much is still left on the lease itself. You cannot simply add this to the auction without paying off the equipment first. The best part is that you could only owe a couple of thousands and make even more of it at an auction!
4. Trust the experts
Not all auctions are the same and that goes for liquidation auctions. It is imperative to have an expert on your side that can help you, both the seller and buyer will benefit from the best technology and decades of experience on their side.
Lyon Auction is one of the top auction companies in the United States and internationally with hundreds of auctions each year. For more information on liquidating your heavy machinery equipment at one of our auctions, contact us today!