Buying Advice Auctions?

[Lastkidpicked]

However, too much broken equipment gets sold as good. Some should have been hauled directly to scrap.

This is one example of how efficient our economy is. The auction company near us has a business relationship with a metal scrapper. At the end of each auction, the scrapper comes in and picks up any "No Sales" and hauls them off for scrap. He gets this for free.

The flip side of this is he has to pick up everything left behind. So he has some expenses getting rid of some items, but that's okay becuase he makes enough on the recycling.

It's a win-win for everybody.

 

[EddieWalker]

Not related to tractor and farm auctions, but I had a client who owned a used car lot in town. He would buy the cars for $50 each at the car auction and then list them for a grand or more. They where all older cars with some miles on them, so the people buying them tended to not have a lot of money. He financed them for a couple hundred down, and expected them to quit paying after awhile . Usually he'd get a year or two of payments out of those cars, but he already made his profit from the down payment. Every payment that he got was just bonus cash in his opinion. This was a retirement business that he owned, and he made enough to make it worthwhile, but it wasn't something that he relied on. He probably sold a dozen or so cars a month.

 

[Sonny580]

Buyers premium here is up to 15% now on the average. A few years ago there was 0%, then 1.5, then 6%, etc, etc. ----Taxes on top of that and that "CHEEP" item just went thru the roof!! lol!!!

 

[CliffordK]

Shoot, better have close to 25% above the bid price; 12.5% buyers premium; 3% card fee; plus 7% sales tax. It's gotten to the point where it has to be a real good deal to make it worth it...

No sales tax here in Oregon.

Most auction companies will accept either cash or cashier's checks, and sometimes personal checks at no fees. Due to COVID, most have gone online, so one generally has time to stop by the bank before heading there to pick up. If you're over $1000 in the purchase, then even wire transfer may be cheaper than the Visa.

I think the auctioneers make all their money from the buyer's premium. So, if the sale is $100,000, then they earn about $10K (at 10%), out of which they pay all their employees, rent any equipment, pay advertising, and etc. And, it often takes substantial time to organize an estate auction, as well as doing loadout.

 

[workinonit]

The items are at auctions for a good reason!!! Sumpin wrong and seller dont want to spend the money to fix it in most cases!!!! Bid accordingly!!!

May be true in some cases but here that is not the norm. Especially for bigger ticket items.

 

[newbury]

The items are at auctions for a good reason!!! Sumpin wrong and seller dont want to spend the money to fix it in most cases!!!! Bid accordingly!!!

That's one of the benefits of many Government auctions for equipment like tractors. Many places have a policy of getting rid of equipment due to age and many get rid of equipment when they have a policy change.
One site near me auctions off a few ~40HP tractors a year, very lightly used.
About 10 years ago our school system had a change to decrease "shop" classes, increase "computer" classes. Almost every high school had to change "woodshop" classrooms to "computer" classrooms.
There was a glut of used jointers, drill presses, planers etc. on the market. I was picking up a load of such and was given a 18" Band saw in good condition because they needed the space.

 

[4get gto]

Buyers premium here is up to 15% now on the average. A few years ago there was 0%, then 1.5, then 6%, etc, etc. ----Taxes on top of that and that "CHEEP" item just went thru the roof!! lol!!!

Most buyers premiums around here in Eastern Pa. are 19% +6% tax . Across the river in New Jersey its 21% + 7% sale tax...but people still keep showing up..
Buyers Premiums are just another money grab. Plus they charge YOU tax on it so they don't have to. And its their profit....

 

[MattB4]

Either way, you're right.

I had always heard these tales of "great deals" at auctions. Must have been an alternate universe.

It happens just enough that people are lured in. Sorta like gambling. If no one ever won it would quickly lose a following.

One of the things that amuse me about Auctions is if I get interested in some piece of equipment it seems everyone is interested in it and makes bids like no tomorrow. But I see the results of past Auctions of the same model and it was sold for a rather reasonable or even low amount in terms of what I would offer.

 

[LouNY]

Most buyers premiums around here in Eastern Pa. are 19% +6% tax . Across the river in New Jersey its 21% + 7% sale tax...but people still keep showing up..
Buyers Premiums are just another money grab. Plus they charge YOU tax on it so they don't have to. And its their profit....

That kind of buyers premium is pure dee nuts.
Most of the ones that I've seen around here at at 10% with a cap on the premium of not more then a set amount per item. Personally I tend to avoid most of the auctions with the buyers premium or I have to factor that in my bids. Last time I stopped bidding on an item and the auctioneer was trying to get me to go again I told drop the buyers premium and I'd think about , got quite a response from other bidders and the auctioneer and I had a conversation about it after the sale. Didn't change either of our minds but he did learn that the buyers premium was one reason for less bidders then he used to see.

 

[Lastkidpicked]

About 10 years ago our school system had a change to decrease "shop" classes, increase "computer" classes. Almost every high school had to change "woodshop" classrooms to "computer" classrooms.
There was a glut of used jointers, drill presses, planers etc. on the market. I was picking up a load of such and was given a 18" Band saw in good condition because they needed the space.

Is anybody else saddened just by reading this?