BUYING USED EQUIPMENT AT AUCTION

[NATTYBUMPO]

I'm going to an auction with a bunch of used 3-pt farm equipment next weekend. I will have done some groundwork re prices for both new and used equipment of the same type.
My question is: what do you guys consider to be a "fair deal" for used equipment that is: 1) Almost New - ie used maybe once or twice and stored inside, or 2) Used but not Abused - faded paint, a few bunps and scratches but well cared for and field ready ??
I'm wondering in percentage terms of the same piece of equipment new?? Thanks for any thoughts.

Natty B.

 

[chrisjbell]

Depends on the equipment - a well used box blade or straight blade will work the same as a new one, even if it isn't purty (might have to replace an edge or scarifier, but you can see that kind of wear pretty easily). What isn't so cut and dried is something with more parts - gearboxes on cutters, tillers, etc. may be badly damaged internally and you can't tell until it breaks on you (this could be true of relatively new equipment, too).

So I'd throw out at least 1/3 $$ less than new for #1 condition and at least 1/2 $$$ less than new for #2's before I'd consider used. But there are other factors which I may not have thought about...

 

[Slamfire]

The last thing I bought used was a carry all. I paid $40 + tax. The counterman wrote it up as junk. /forums/images/graemlins/laugh.gif Other items, single row cultivator $70, grader blade $100, Single 16" bottom moldboard plow $100, subsoiler $75. 2 sections of spike harrow, $40 per, took two to make one.

 

[sweettractors]

About 1/2 of new is good rule of thumb and remember to compare apples to apples--Feel free to use our website for comparison purposes---Ken Sweet
Sweet Farm Equipment Co. *Since 1977*

 

[cowboydoc]

It's really impossible to say. I've seen older equipment go for more than new. The reason guys said was you couldn't buy equipment like that anymore. The new equipment wasn't made as good. Sometimes you'll get things cheaper but not often. With the boom in compact tractors and so many people having acreage now there is tremendous bidding on alot of this stuff.

You can get it cheaper but it's one of those deals you have to be in the right place at the right time.

You also have to beware of the equipment. You never know what you are getting buying at auction. Once you buy it's yours as is. Personally I try to buy new or buy used from a reputable dealer.

 

[Gary_in_Indiana]

I'd think if you could get the 'average' piece for 50% of new and the 'nice' piece at 70%, you'd be doing very well. Auctions are very odd. There doesn't even seem to be a pattern within the same auction. By that I mean everything you watch can seem to go very high yet there will still be a bargain on something. I've been to multiple sale ring auctions and watched two virtually identical items sell within three minutes in different rings for a difference in price of 25-30%. /forums/images/graemlins/crazy.gif Good luck at your sale. Don't forget to tell us what you buy. /forums/images/graemlins/smile.gif

 

[thcri]

Natty,

Welcome to TBN. Do us all a favor and fill your profile and let us all know where your from. Some of us wouldn't mind if you told where this auction was so we could go to it if in your area.

Thanks
murph

 

[NATTYBUMPO]

Thanks for the replys, guys. We've bot a few things at farm auctions ,but never a major piece of equipment. I appreciate the advice. BTW this auction will be in Mesick, Mi on Saturday. I'll be filling in my profile as soon as I figger out how!
I'll also pass along my experience with two dealers this week. Dealer #1 I bot my K3010 new 4 yrs ago.Didnt haggle much on price at all. He has a 60" LP tiller that been used as a rental- New price is $1950 - he'll let me have it for $200 off!! Not sure what year it is! Some deal for a good customer as I've bot all my oil, fluid, filters, grease, chains, etc from him.
Dealer#2 (Big Green) Has a Befco 366 that several years old and has also been used as a rental - kinda rough with new times. He goes "Well its $2350 new but i'll sell it for $1950!!" Well. when it was new it didnt LIST for $2350 or 1950 either! What am I missing here?? Anyway, that why I'm goin to this auction. What am I missing here??

Natty B. /forums/images/graemlins/confused.gif

 

[sweettractors]

<font color="blue"> What am I missing here?? </font>

You are missing a 60 inch new First Choice Roto Tiller delivered to your door with lift gate for easy unloading for under $1400--Ken Sweet
Sweet Farm Equipment Co *Compact Tools headquarters*

 

[Egon]

To be able to properly bid at auctions takes time. One has to know all the normal prices beforehand, know when to stop bidding and be able to evaluate the condition of equipment in a few minutes time. This proccess means you have to hang around some auctions to get a general feel of how things go.

Some equipment is quite easy to evaluate but as others have stated anything with gears, bearings or chains or wear items shuch as tines or shovels may be more difficult. On these type of items a repair factor should be included before you start biding.

Some people get lucky but it may be because they have done a lot of homework.

Egon

 

[Kelvin]

My experience has been that the majority of stuff sold at auctions are not sold at "bargain" prices. Indeed, the final sales prices are usually pretty high. There are occasional bargains, though.

When I buy used (tractors, farm equipment, automobiles, etc) from a dealer or private individual I have a chance to look the equipment over thoroughly and even try it out in an attempt to assess the equipment's condition.

At auctions, I find that the final sales prices are typically EQUAL TO or HIGHER than the prices of identical / similar equipment for sale at the aforementioned dealers or private individuals. When a person buys at auction, there is USUALLY not enough opportunity to check it out very thoroughly.

I think that sometimes there is a "heat of the battle" situation at auctions where some people decide that they just have to have that certain item and won't be out-bid.

Good Luck. If you haven't been to too many auctions then I recommend going for educational purposes. You might even find a good deal!

Kelvin

 

[cowboydoc]

My exact experiences Kelvin.

 

[Bird]

Kelvin, I've actually had very little experience with auctions and have never bought anything at an auction for the same reason. For a few years, I was in charge of the police auto pound in Dallas and we auctioned off an average of 130 vehicles a week (every Monday morning unless it was a holiday in which case we had the auction on Tuesday morning). In 5 years, I only recall one for sure that I would have paid more than the buyer. That was a new diesel Kubota riding mower that sold new at that time for $4,000 and it went for $1,800 at the auction. /forums/images/graemlins/blush.gif

 

[chrisjbell]

And even though you didn't really need it, I'll bet it was tough to let that one go... /forums/images/graemlins/grin.gif

(I've often thought it would be fun to get one of those, but my lawn doesn't justify it.)

 

[Soundguy]

I know what you mean. I sometimes visit a metal scrap yeard.. and if they have farm implements laying around, they bought them at per/weight prices.. and will sometimes sell them to you for just the price of the metal.

Soundguy

 

[Taylortractornut]

Hey Kelvin what part of East Tennessee are you from? I have a cousin that buys some equipment from me and sels it there.

 

[rambler]

> Anyway, that why I'm goin to this auction. What am I missing here??

I get the same shaft - er - 'deals' from all the dealers around me as well. i hardly buy anything ever from a dealer. Outfited my farm with auction buys. Got a round baler - dealer wanted $3400, got it for $1600 at auction. Got a (dealer price $15,000) tractor at auction for $10,600. I needed gravity boxes, got at dealer for $1000 each. Added a 3rd one from auction for $550. Needed a chisel plow got from dealer for $950 - welded hitch broke, found the same model at auction for $150 with no welds. And more.

Hate buying at dealers. I feel hosed every time I walk in. auctions are much better deals here in southern mN. All of the above were apples to apples - exact same models, the auction deals had less hours or wear....

But, you need to get good at it & have time for it. It's an art form. Don't walk into the first auction with a shopping list & think you have to buy every item. You'll be better off at the dealer then! /forums/images/graemlins/smile.gif Also you are looking for items in great demand these days, so you won't find any super bargins.

I've been to enough auctions to know just how badly the dealer is hosing us with his prices. Hate that. Don't even look at dealers any more - not worth it.

--->Paul

 

[Slamfire]

Well yeah, the dealer buys them things at auction, then marks 'em up 100 or more % to help meet his nut. I've been to auctions that didn't have what I wanted, and lord knows the dealer don't have it either. Auctions are kool you just have to disipline yourself. Some rich woman out bid me on some of my uncles antiques, but the stuff I got was great and for less'n half the prices she paid.

 

[sweettractors]

We have a regional auction company that specializes in estates and farm closeouts and he gives instructions before he starts the auction. When something goes up for bid that you want, Put your hand in the air and We will let you know when to take it down. They guarantees that you will get everything you bid on, using this method. Most participitants that are gathered look at each other and have a good laugh and many of the inexperienced and a few of the ladies, follow his instructions to the letter--The auctioneer gets dead serious when he explains that all winning bids will have a 10% "Buyers Premium" added to the final purchase price (this helps pay the auctioneer).--Ken Sweet
Sweet Farm Equipment Co *Inexpensive Shipping*

 

[Kelvin]

I'm just south of Knoxville, in Blount County (pronounced "Blunt").

Kelvin