What To Know Before You Buy Machinery at Auction

Whether you’re a farmer searching for a reliable tractor or a business owner sourcing new equipment, auctions are an excellent way to find machinery that can boost productivity. Like many auctions, understanding the ins and outs of buying machinery at auction can mean the difference between a smart investment and an expensive mistake.

To help you navigate this auction category like a pro, here are a few helpful tips:

Don’t Skip Pre-Auction Prep From car auctions to property auctions, you’ll likely come across the term “as-is” or “voetstoots.” This means that auction items are sold with faults and all! Therefore, it’s important to remember that you’re committing to purchasing an item in its current state.

Auction attendees are advised to do their own research to ensure the machine’s future functionality meets their needs. If possible, it’s a good idea to attend auction previews or send a technician to verify the equipment’s condition in person. Look for critical signs of wear and tear, such as fluid leaks, corrosion, or evidence of previous repairs. This will help you understand the machine’s true condition and any potential maintenance costs you may face in the future.

Additional pre-auction checks can include verifying serial numbers and checking with the manufacturer to confirm the year and model. Being prepared helps you understand the machine’s real condition and lifespan, allowing you to budget for future maintenance, upgrades. This helps you avoid any expensive surprises.

Research, Research, Research

Whether you’re in the market for a tractor or power tools, not all equipment will perform the same in your environment. Plus, heavy machinery varies widely in price depending on age, brand, and model. That’s why doing your due diligence pays off, especially if you want to avoid overpaying.

Look for similar equipment models at auction, both new and used. This gives you a clearer idea of how much you should expect to pay for a particular type of equipment. However, keep in mind that machines can look identical on paper but may vary significantly in condition and wear. Research and pre-auction checks help you understand the real value of each lot you’re bidding on, so don’t skip it!

When you do enough research, it allows you to choose the auction that offers the best combination of value, transparency, and support.

Create a Bidding Strategy

When you have a set plan, you’re more likely to acquire the equipment you want. For example, your research has determined that a Haas CN milling machine has sold for around R450 000 at past auctions, but your budget is capped at R400 000. Instead of jumping into the bidding, you wait until the pace slows down, then place a single strong bid near your maximum. This can often be a good way to discourage competition, signalling you’re serious without getting caught up in a back-and-forth.

An alternative scenario sees you eyeing a used John Deere tractor. Instead of bidding in small increments, you place a bid that bumps up the price, discouraging casual bidders. By doing this, you filter out competitors who aren’t fully committed, and only leave serious buyers in the mix.

Having an effective bidding strategy allows you to stay within budget and not get caught up in the competition. It also maximises your chances of winning, allowing you to observe patterns and increasing the likelihood of attaining equipment at a fair price.

What Happens After The Auction

There’s more to auctions than winning. When the hammer falls, you’ll need to consider payment, paperwork, and get your machinery home. This an important step, as it will help you avoid any unnecessary expenses and delays:

Finalise Payments: When the hammer falls, you’ve officially entered a legally binding contract. Failure to comply with this “contract” could see you being blacklisted by the auction house, forfeit your deposit, or face other financial penalties. Ensure your finances are in order so you can make payment promptly and avoid unnecessary delays.

Removal Terms: These terms place the responsibility on the buyer to arrange and pay for dismantling or transportation of auction goods from the auction site once the sale is finalised. Knowing the removal terms ahead of time ensures you can plan transport, equipment handling and staffing. Auction houses will often let buyers know when equipment will need to be removed.

Disassembly: When it comes to heavy equipment auctions, this is often an overlooked aspect of the closing process. While purchasing tractors at auction may not require you to disassemble parts, specific heavy equipment will need a skilled professional to perform this disassembly onsite. Make sure you arrange this in advance.

For more on the auction closing procedures, make sure you check out our Guide to the Closing Process.

Find Heavy Equipment Auctions

Auctions provide access to a wide range of equipment, giving buyers the chance to compare brands, models and conditions all in one place. Auction Calendar is home to a variety of industrial and agricultural auctions, all offering buyers a chance to expand their commercial vehicle fleet, upgrade their farm equipment or purchase a reliable tractor to boost productivity and keep operations running smoothly.

With the right preparation and strategy, buyers can secure quality machinery at competitive prices, making auctions a smart choice for any business or farm.

Find your next agricultural auction on Auction Calendar!