Doing your homework is the key to navigating the sometimes-tricky world of PMV auctions
To the uninitiated, attending a construction equipment auction can be a daunting prospect. Is there a trick to spotting a bargain? What are the major caveats to look out for? In the following guide, Keith Lupton, VP of regional sales in the Middle East for World Wide Auctioneers (WWA), explains how newcomers can make the most of an auction.
Tip 1: Do your homework
Begin by asking yourself what you really want, and then research that item thoroughly. Use the internet and specialist magazines to gauge the current market price of the product. After taking into account age and condition, and accounting for regional variations, formulate an idea of what you think is a fair price for the machine in question.
Tip 2: Know your limit
Keep in mind that it is the auctioneer’s job to achieve the best market price for the seller. Decide how much you would like to pay for a machine before the auction, and decide upon your maximum bid. Be careful not to get dragged into a bidding war; if the price goes too high, move onto something else.
Tip 3: Be realistic
There is no point thinking you’re going to buy a 2011 Caterpillar D8T dozer for $20,000. It just isn’t going to happen. If it does, the chances are you’ve purchased a heap of junk. Remember, auctions reflect the true state of the market. Something is worth what somebody will pay for it. This is especially pertinent when it comes to second-hand machinery.
Tip 4: Follow the trends
For the first time in years, the worldwide auction market for construction equipment has become slightly depressed. Prices at present are not top dollar. At the beginning of the downturn when retailers couldn’t move their machines, auction prices were extremely robust. However, the global market is currently hesitant. This is a good time for buyers.
Tip 5: Attend the auction in person
Forget the year; it’s all about condition. A 2011 machine can have burnt-out pistons, leaky hoses, damaged blades, etc. Auctioneers are not scrap merchants, but the quality of the lots on offer will inevitably vary. From a buyer’s perspective, it’s always best to look at the machine before you bid. If in doubt, don’t be afraid to pay a third-party to inspect the machine on your behalf.
Tip 6: Concentrate
Auctions give you the chance to buy some very good machinery at extremely reasonable prices. However, you need to pay attention. Don’t mistake lot 123 for lot 123A, or you might end up paying $50,000 for something that you didn’t want. All sales are final.
Tip 7: Get some experience
Don’t be afraid to get some experience under your belt before you buy. Attending an auction is a worthwhile, even if you don’t buy anything. Some auctioneers, such as WWA, allow prospective customers to sit in on an auction without a number. Use these opportunities to learn the ropes.