Heavy equipment auctions are a great place to get decent machinery at reasonable prices. However, if it's your first time at an auction, you may make some mistakes that affect your choice of equipment and price.
Luckily, there are several bidding strategies and tips that you can learn to get quality heavy machinery, whether new or used. With today’s auction industry providing businesses with the finest selection of heavy equipment, it's vital to know these bidding strategies to find the best fit for your company.
Here are some online bidding strategies you can use, whether you are a seasoned bidder or a new one.
1. Understand the auction method
The auction method plays a significant role in how you'll bid for items since it can be adjusted based on the lot and machinery available within each lot. The most common type of auction method is one where heavy equipment is sold in lots, also known as a bid caller.
Other types of auction methods include sealed bid, Dutch, blind and silent. If an auction sells equipment to the highest bidder, it's without reserve. On the other hand, an auction with reserve is where the owner has to confirm the sale of machinery.
2. Preview items before buying
You can't purchase heavy machinery without previewing and inspecting since you have to make sure all parts are in good condition and work properly. Some items you should be checking are your horns, windshield, brakes and lights.
3. Be disciplined
When online bidding for heavy machinery, discipline is vital to avoid spending more than you can afford on equipment. For example, if someone else bids for machinery that you like and refuses to back down, don't compete with them as you'll end up splurging on it.
Now that you have online bidding strategies, you should know the difference between online auctions. There are three different types, live/simulcast, online-only and absentee bids. A live/simulcast auction is a mix between a live and online auction. Online-only bids are strictly online. Absentee bidding means you place a bid before the sale begins.
Alex Lyon & Son is an auction company that has machinery auctions across the U.S. and internationally. Check out our auction calendar today to see if we are holding online or in-person auctions in your city!