Buying Advice Auctions?

joea99 · Nov 14, 2023

Advice for buying at auction, Internet bidding.

So is bidding on equipment a compact TLB in this case, just another case of "A Fool and his money? Or is it reasonable to give them a shot?

There are some fairly low hour "clean looking" machines listed, but it is problematic getting an accurate description of condition. Then there are the obviously abused machines that say "runs and drives", which I take to mean "weak and gimpy".

Thanks for any advice.

LittleBittyBigJohn · Nov 14, 2023

I have bought several things at auction. Usually the auction company is not going to say more than runs and drives because anything more could potentially be held against them. If they said it was a great piece of equipment that will last you a long time and something happens that they were not aware of it could make the auction house look untrustworthy if nothing else.

Something expensive enough that would cause me hardship if it was not in the condition expected I would absolutely go inspect in person before bidding. Sometimes they will go cheap enough that you can afford to fix some potential issues and still be out less than normal value. Probably more often they will go for normal used value or higher.

workinonit · Nov 14, 2023

I see very nice equipment on auctions a lot. And I frequent quite a few of them. Been to 2 this month. Then again, I see a ton of junk on them. If I'm going to bid online, I go by ahead of time and look at what I want to bid on. I probably wouldn't buy a big ticket item sight unseen. But that's just me.

workinonit · Nov 14, 2023

There ya go. Like minds.

YanmarFever · Nov 14, 2023

Always look at the item FIRST in person.

I bought a Cadillac sports car a few years ago off ebay, the seller said it was like new cond. ( NOT) !!!!
The wipers didn't work along with the AC and it steered funny...
People will say anything to get you to part with your $$$

MattB4 · Nov 14, 2023

My advice is do your research thoroughly on any item that you get interested that is Online Auction. It is not difficult to Google the year, brand and model. Even respected Brand names may have models that everyone knows are not worth owning. These trouble machines are often spotted on Auction since regular sale is difficult. Look for online reviews.

You often can find similar units that already sold at Auction and for how much they went for. Understand if there is any fees, special payments requirements, taxes, wiring fees and time you have to pickup the item. Think about what it is going to take to transport it to your home.

Personally I have found that bidding before the last few minutes of the online Auction is a futile endeavor. Especially picking so called Max bid. Even in the last minutes Bids made will cause the Auction to be extended by another minute for others to over bid you.

LittleBittyBigJohn · Nov 14, 2023

Oh yeah. I forgot about buyer's and seller's fees. More and more I'm seeing buyer's fees. If there is a 10% buyer's fee that means you will have to pay an additional percentage on top of the bid that won the auction. a 10% buyer's fee on $10,000 would require $11,000 paid to settle your winning bid.

lilranch2001 · Nov 14, 2023

Ifn I haven’t put my own two eyeballs and hands on something I’m not gonna bid on something!

newbury · Nov 14, 2023

joea99 said:
Advice for buying at auction, Internet bidding.

So is bidding on equipment a compact TLB in this case, just another case of "A Fool and his money? Or is it reasonable to give them a shot?

Bought my M4700 at a Gov. Surplus auction.
$11,500
If you can check it out in person and trust the seller, well worth it.

joea99 · Nov 14, 2023

MattB4 said:
My advice is do your research thoroughly on any item that you get interested that is Online Auction. It is not difficult to Google the year, brand and model. Even respected Brand names may have models that everyone knows are not worth owning. These trouble machines are often spotted on Auction since regular sale is difficult. Look for online reviews.

You often can find similar units that already sold at Auction and for how much they went for. Understand if there is any fees, special payments requirements, taxes, wiring fees and time you have to pickup the item. Think about what it is going to take to transport it to your home.

Personally I have found that bidding before the last few minutes of the online Auction is a futile endeavor. Especially picking so called Max bid. Even in the last minutes Bids made will cause the Auction to be extended by another minute for others to over bid you.

All good points.

The stuff I'm looking at are well known and well regarded. The actual condition, however is clearly not known. They are too far for it to be practical for me to inspect myself and finding a "buyers agent" is probably not gonna happen. Some have clearly been out in the weather, but do not appear "beaten". Couple others have decals on them that indicate rental or lease units but appear clean and solid.

Yeah, the fees are "death by a thousand cuts" it seems.

I've seen auctions that go nuts in the last few minutes going from almost nothing to thousands over what is reasonable.

MattB4 · Nov 14, 2023

Some Auctions will have videos of the equipment being operated. A good eye and ear can spot things. It helps to replay videos several times and look for specific things. Photos can help also and if the Auction site has a zoom feature for them you can concentrate on areas of interest.

Obviously the more experienced and savvy you are in regards to how something is supposed to look and sound the easier it is to spot problems.

BTW, if there is a condition report posted from the Auction House read through it carefully.

Thomas · Nov 14, 2023

Check to make sure it has serial number.

LouNY · Nov 14, 2023

As others have said if it has videos play them and watch them carefully. The other option you mentioned is to have some one else check it out for you. Or keep your bidding at a level that some unexpected costs won't be unbearable. I have bid on equipment without having seen it and it has worked out good. I have also "lost" a lot more auction items then I have won.

jaxs · Nov 15, 2023

I've had good experience hiring a used equipment dealer I've known a long time buy for me at auctions I can't attend. I've also put in an order for equipment I'm not in a hurry for and they buy it when he has room to haul it. Reputable auctioneers have seller aggrenents that say certain undeclared defects nullifies sale at buyers discretion. I know four dealers that aren't allowed to buy or sale at any reputable auctions within 300 miles or so.
BUT there are some sleazy auctions around here to so you should vett them before doing business.

Little Red Tractor · Nov 20, 2023

A paraphrase from a nearby auctioneer: don't expect a $4500 compact tractor to perform like a $10,000 compact tractor!
There are deals to be had, certainly, but LET THE BUYER BEWARE!

jloven · Nov 20, 2023

As others have already said, the best option is to go to the auction site and try it before you buy it. However, like you, most auctions are too far away from me to travel to inspect and hang around until the next day to take a chance on placing a winning bid. I have had good luck in the past bidding (and winning) large items. In 2019, I won a 2017 Cat 259D with 1800 hours. A couple of months ago I got a 2011 Bobcat S205 out of Illinois. I had both shipped as it was much cheaper than I could ever go get them. The Cat 259D needed a few small repairs such as a piece on the door latch and a new switch for the heat. Mechanically it has been perfect so far. I have around 500 hours on it. The Bobcat was as close to perfect and I could hope, hasn't needed anything but I did add a backup camera. I did get a hay rake once that needed more work than it appeared, probably why the winning bid was so low. Its always a gamble with auctions. I have found that if you call well in advance, most auction companies will give you some background on the item. With the bobcat S205, the guy talked to me for 15 minutes about it and knew the guy who was selling it. Made me feel very good about it. If they don't say much about the item, it might be an indication to move on from it.

workinonit · Nov 20, 2023

I attend a couple of different auctions regularly. What I have come to realize is there are really no deals at auctions that attract larger crowds. The good stuff sells high and the junk sells low typically. Sometimes even the junk sells high. Those auctions are a good way to load up a trailer full of "stuff" and get it off your hands.

scootr · Nov 20, 2023

Don't forget transportation costs if stuff needs to be hauled some distance.

xBBx · Nov 20, 2023

Agree with what many say here. Plenty of good items and experiences at auctions, but also plenty of the opposite as well. Always best to put your eyes & hands on it first. Even operate it if you can. Most every auction allows inspections and general operation. If they didn't, that's a red flag right off the bat. Sometimes equipment gets to auction because it's high hour and due for something to fail. Sometimes it's there because of a business or farm liquidating, etc. Sometimes it's a rental fleet being sold off to renew the company equipment. And sometimes it was just somebody else's old problem. If you can, find out the reason or origin the item is there to begin with.
About 8 years ago I bought my 2006 Gehl CTL60 off of Ebay sight unseen. Took a risk. Why? It was the only CTL I could find within 3 hours in my price range. Anyway, when it arrived it was a bit rougher than I expected, good bit of loose-ness in the bucket and just about everywhere else. But everything seemed to be running and operating fine. First trip I got about 75 yards before all the lights and alarms went off... No better way to learn a machine than to have to troubleshoot issues and replace a bunch of stuff... lol. So I am now much more capable of maintaining a Gehl CTL60 - and that sucker is still running like a champ today. But if you'd rather avoid such an education, go learn as much as you can before you bid. Good luck!

EddieWalker · Nov 20, 2023

I've bought a few things at a local auction, and I've walked away from a lot more stuff that I was wanting. I can't imagine spending money on something without looking it over in person. There are so many little things that add up it being a money pit.

A local dirt contractor that I know thought he got a great deal on a Deere 710 backhoe at an auction. It was a little rough, with a lot of hours, but it started right up and ran smooth. When he got it home, he realized it didn't have any power. He went through it and found that somebody had put BB's in the injector line to block two of the 6 cylinders. This little trick made the engine look like it was running without any issues. It turned out that the engine was too far gone to repair and he was stuck with a backhoe that wasn't worth the cost of fixing.

When my Case Dozer started giving my issues with one of my hydraulic pumps, I talked to the dealer. He said that the replacement pump would cost $25,000 plus labor to replace it. He suggested that I take it to the auction because it took awhile for the issue to show up, and most people wouldn't notice it until they had it home and where using it. Turned out that I was able to remove the pump and have it rebuilt for $3,000

You just don't know what you are getting at auction, and if you are not there to look it over, you are taking a huge risk.