Reason to Buy Heavy Equipment from Used Equipment Dealers instead of at Auction
Millions of people attend used equipment auctions every year. It’s a great place to see your friends, catch up on what’s happening in the industry and see the hundreds of machines on display. These 1-2 day events have become a popular form of entertainment, and for many a chance to add equipment to their fleet.
While bidding on your chance to “win” a piece of equipment is an adrenaline rush, buying at auction does have its drawbacks. In fact, more often than not, you can find the best quality piece of used equipment available on the market, at the best price, from a used equipment dealership.
- The quality of equipment — Equipment dealers stock and market machines they think they can sell. They have a limited amount of space on their yards, and the machines that are in the best condition get preferential treatment. What do they do with the machines that don’t meet their high-quality standards, you ask? They take them to auction! So, while you may be able to find a few machines being auctioned off that are in excellent conditions, the majority of what you’ll see are machines that someone else didn’t think they could sell outright.
- Better pricing — The possibility of finding a “steal” at auction is one of the elements that keep buyers coming back. The competitive nature of bidders usually drives up the price of machines beyond what you would typically pay an equipment dealer. Remember: no seller is in the market to lose money. Dealership prices are set by what industry data deems is a fair price for a machine. The price you’ll pay at auction is set by adrenaline-fueled shoppers.
- You can take your time —Buying equipment should be well researched and thought out. Before you buy, you need to make sure that a specific machine is exactly what you want, and you’ll want to perform a thorough inspection for yourself. Auctions thrive off the opposite of that — leading buyers to make brash decisions and bidding more than they originally planned to. There’s a reason you hear about “buyer’s remorse” after auctions. Instead, take your time, shop around and make sure you’re getting exactly what you want and need.
- Buying on your schedule — Auction companies set the days and location for buyers. There is no flexibility. If you need something now or have a prior commitment the day of the auction, you’re out of luck. Used equipment dealers operate on your schedule.
- Trust — When you’re buying used equipment, trust is so important. You have to trust that the machine you’re buying is being properly represented by the seller, it’s free of any liens and that you’re going to pay a fair price. If you do have an issue after the sale, you want to work with someone who will help find a fair resolution to the situation. Auction companies work on volume — the more equipment sold, the more they profit. Dealers work on relationships — understanding that a dollar earned today is worthless if it creates hard feelings and doesn’t drive repeat business. Chances are your business works the same way.
So, go ahead attend that next auction. Have fun catching up with all of your friends and seeing the parade of equipment. However, when it’s time for you to add an excavator, dozer, dump truck or any other piece of equipment, start with a used equipment dealer. And if you want even more assurance that dealer will treat you the best, look for the IEDA logo. Our members have been vetted and represent the best the industry has to offer.