4 minute read
Used Equipment into Cash
Take Advantage of Hot Equipment
Market to Convert Used Equipment
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into Cash
Shane Bundy, District Sales Manager Big Iron Auction Company shane.bundy@bigiron.com bigiron.com
The scarcity of equipment is causing high demand for used machinery. This is creating the perfect scenario for financers that want to quickly convert unused equipment assets into usable cash, or those who are working with clients considering retirement, or who simply want to secure extra cash for their operations.
Lease Returns and Converting Unused Equipment Assets into Cash
As a financial services company you have unique needs and challenges. An online auction company such as BigIron Auctions can help with things such as determining the value of deficiencies or the condition of returned equipment at the end of a lease relationship by conducting lease return inspections. Experienced, trained professionals can inspect returned equipment and provide you with an honest assessment along with its current resale value. Financial institutions are turning to online auctions more than ever. For times when they need to quickly convert equipment assets into cash, the weekly online auction format provides visibility for equipment on a platform with over 400,000 registered bidders. Financers can take advantage of the hot market as well as showcasing used equipment to a global buyer base, which means even more buyers bidding on equipment and increasing profits.
Additionally, financers receive data-driven targeted marketing geared towards the most likely bidders, creating a large marketable audience for equipment. This form of marketing is aligned with the specific items being sold. There are also no freight costs as equipment is sold from its current location. We have confidence from our buyers/bidders due to the free transfer of sold items to the highest bidder. The benefits of an online auction are increasingly apparent and can help financial institutions turn assets into capital.
In short, online auction providers can work with financial institutions to build a large, marketable audience for equipment; they can quickly convert unused equipment assets into usable cash, and they can give lease return inspections to assess deficiencies. Not only that, but the auction format is attractive to bidders and yields market price due to the large sample size of potential buyers.
If you are working with equipment owners who are contemplating the life-changing decision of retirement — or are simply looking to sell equipment they are no longer using — now is the time for them to act. Greater demand in used equipment results in higher final sales prices for sellers, which provides a bigger financial return and can put them in a better financial position for retirement.
When choosing an online auction provider, they should know that not all auction companies are created equal. Many traditional auction companies shifted operations to online auctions during the pandemic, but that pivot has not always been seamless. The auction house may not have the experience, the online presence or auction platform to do the best job, especially for larger auctions. Your clients could end up waiting much longer to receive auction proceeds than they otherwise would — and they may not have as many buyers bidding or the ability to obtain the best price possible for their assets.
What do the best online auction companies do? They help your clients develop a strategy for liquidating their assets and reaching their financial goals. This means developing an entire marketing campaign around their auction. Because every auction is different or has its own unique set of challenges to overcome, sometimes a marketing campaign needs to be designed with those specific hurdles in mind. Typical marketing includes a presence on digital channels, print and radio. For larger items, it’s common to have outdoor signage.
While seemingly obvious, it is also paramount to the auction’s success that people know an event is happening. Our experience has proven that most people are typically willing to travel about 250 miles to pick up purchased equipment. Your clients should also work with experienced online auction companies that conduct Uniform Commercial Code (UCC) checks and, if a lien is found during the check, the auction company should communicate with the seller to find a solution.
Auction houses that go out of their way to allow buyers to contact the sellers with questions or to test the equipment is a vital aspect of the process, too. Building an environment of trust and transparency will almost always yield higher returns. Sellers that are accessible to buyers will have a more confident buyer base who are willing to bid higher. Lastly, your clients should ask the auction company to provide them with the bidding history on their items post-auction so that they have full confidence in the proceedings.
The online auction process can be complicated, but an honest and reputable company can help you and your clients take advantage of the current selling market and high buyer demand which can help boost profits and get the best prices for used equipment.
