Common Auction Terminology

Common Auction Terminology

Getting new equipment can be expensive and time consuming, but one great option you have is searching for upcoming equipment auctions, they have cheaper prices and a large variety of brands. 

We will give first-timers tips and share common auction terminology to get you prepared! The new words can be confusing for both newbies and regular auction goers! 

Auction terminology to know 

Even if you have never been to an auction, you most likely have seen one on a movie! It’s the scene where the auctioneer stands and starts the bidding process. They actually do speak really fast and say something along the lines of “ Do I hear $15, $20 or $25?” This is known as the auction chant and it’s done to keep the crowd engaged. 

Auctioneer: the person that is responsible for a sale by auction 

Absentee bidder: Person who is not present during the auction but submits their highest price offer beforehand. 

Bid: A price offer on what you are willing to pay at an auction. 

Buyer Premium: This is extra charges that a buyer is responsible for paying. Be sure to read the item page to find out if there is a premium on the equipment you want. 

Hammer price: what the item sold for. 

Lien: A charge against an item that is being used as collateral. 

Reserve price: the lowest amount the seller will accept for the item. 

Once you are at the upcoming equipment auctions that you found and you hear, “on the block” this means the next item will be up for auction. 

If you see a piece of equipment you like and it says “As- Is” this means that this equipment will not have any return privileges. 

What to expect at your first auction

Now that you know auction lingo, what else do you need to know? The first thing you should do is set a budget. If you have a competitive personality, you might easily get caught up in bidding wars. By setting up a budget it helps you to not overspend on any equipment.

In addition to setting up a budget, you would want to research other costs that are involved when buying heavy equipment. Check to see if there will be a buyers premium, additional fees and how you will transport the equipment. Be sure to also check if you are allowed to take apart and transport equipment yourself, this can save you money! 

Understand that auctions are a fast-paced environment. Before you go to any auction, visit their site and learn more about their terms of sale. Learn where you can find bidder cards and get all the information before the start! This will help you be more prepared and organized when it comes time to bid for your equipment. 

Once you have set up your budget, did you research what else can you do before the start of the auction? Experts recommend that you head to the auction site early and inspect the equipment you are interested in. By doing this, you can see for yourself what condition it is in! 

If you are looking for upcoming equipment auctions be sure to check out Lyon Auction. Our promise is to make your process headache-free. We work with both buyers and sellers and all of our equipment is located in one location. If you have any questions, contact us today!


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