3 Areas to Focus on When Participating in Industrial Equipment Auctions
Buying new industrial equipment is not a viable option for many buyers, due to an array of reasons, ranging from limited availability to financial constraints. That explains the increasing number of industrial equipment auctions you can find online. Compared to new options, used industrial equipment offer a number of advantages, including low cost and easy availability.
There are, however, a few considerations that command your attention, before you invest in used industrial equipment, which we will cover in this blog post. Take a look.
1. Actual Requirements Whether you buy used industrial equipment to start a business, replace outdated machinery or scale existing operations, it is essential to first identify the exact needs. Though you might be tempted to buy every other option in a decent condition, the decision needs to be in line with your requirements. Purchasing used industrial equipment may turn to be a fruitful decision, unless it has a clear purpose that will justify your investment. Therefore, when participating in industrial equipment auctions, don’t let temptations take charge.
2. Budget If you are buying used industrial equipment, you may not want to bear any overheads in the form of transportation, disassembly and reassembly. Sticking to your budget need to be the topmost concern. You need to factor all applicable taxes on the purchase, and shipping fee. Therefore, make sure you carefully go through all the terms and conditions of the auction before signing on the dotted line. Additionally, you may also consider a contingency fund for unplanned expenses.
3. Format There are several formats of industrial equipment auctions, with the most common ones being online, sealed bid and private treaty. The length of the auction depends on the auction type. Online Auction A auction sale on a website that starts and ends at a specified date and time. You get the freedom to explore an array of options without having to run from pillar to post, and get your purchase delivered to any desired location.
Sealed Bid A bidder submits a single, irrevocable bid within a predetermined bidding period. Once bidding period is over, the winner is chosen by the seller based. Though a hassle-free option, the ambiguity in the process leaves a reason of doubt.
Private Treaty
This type of auction usually takes place inside an indoor facility, such as a meeting room or hotel convention hall. A private treaty auction offers a great level of transparency as the bidders compete under a common roof, but participation is by invite-only.
The Way Forward Though it is impossible to eliminate the challenges and uncertainties while purchasing used industrial equipment, keeping a checklist of the key considerations is sure to be helpful. Moreover, it is important to ensure that you choose a reputable auction platform. If you are looking for online industrial equipment auctions, Salvage Bid is a name you can trust. To learn more about any of the options listed with us, or our bidding process, feel free to contact our support team at +1 (360) 347-1300, Mon to Fri, 6 am to 3 pm (PDT).