Have you ever considered buying a truck, machine or motor vehicle at auction? I mean, why not right?… makes sense buying something at an instant saving off market value……. Well it certainly can in most instances but there are always some considerations for the newbie auction bargain hunter, so here are my 5 tops tips when buying from an auction!
1/ View and Start the Vehicle
Most auctions might have a viewing period prior to the auction date where you can start the vehicle, work out when this is. You won’t be able to drive it but you will be allowed to kick over the engine which is a good start to knowing it runs ok.
2/ Ask about the vehicles or equipments background
All auction houses have sales guys that procure vehicles throughout the month prior to auction, ask them where the vehicle came from? Was it a repossession? Private seller? Ex government or council fleet? This may help you to make a decision on how the asset was treated over its working life…. Like most government & council fleet vehicles might have a better service history.
3/ Get to know the market for the equipment you wish to purchase
How awesome is the internet? You can literally price check a wide variety of assets on different websites. Jump online and see what that Toyota Hilux is being sold for with similar Klms from a dealer or private seller before you go to auction…. I’ve seen a few bidding wars over the years where buyers pay over what the market value is so make sure you understand the market and stick to your budget!
4/ Make sure you know the fees associated with buying at auction
What did you actually pay? All auctions have a buyer’s premiums which is a % of the amount when the auctioneers hammer falls, ask before you register what all their fees are. There may also be an additional admin or processing fee. Also some auctions are including GST and some are + so you might want to consider this with your budget as an additional 10% might be more that you are willing to pay.
5/ Go to an auction and get a feel for how an auction works before you buy
I highly recommend going to at least 1 auction before bidding on anything… get a feel for how it all works, walk around and ask a few questions, watch the auctioneer and how people bid. Also most auctions are both on the floor and online these days so its nice to be aware of where all the bidding comes from. Make sure you register and give yourself plenty of time before your item comes up.
I hope these top five tips help you when looking to buy at an auction.
If you have any questions about buying at auction or how to obtain finance in preparation for buying at auction please give me a call on 0431 177 605 or drop me a note via the contact us form.