Need some tractor auction tips

[Laneman]

Going to an auction in two weeks to look for one I can buy and sell later. I know the basics of how to check a tractor but haven't been to an auction. I guess they don't let people try them out do they? Any other auction tips appreciated.

 

[RoyJackson]

Know what you're willing to spend (and what the value of the machine is) before you go...make your bids and once you reach your limit...STOP!

 

[brain55]

Going to an auction in two weeks to look for one I can buy and sell later. I know the basics of how to check a tractor but haven't been to an auction. I guess they don't let people try them out do they? Any other auction tips appreciated.

The auctions I have been involved in have a preview day. You can pretty much crawl all over the machines and drive them. There wasn't really anyplace to work with them and doubt that it would be encouraged. My involvement was on the selling side, the company I was working for sold a lot of their equipment at 3 auctions in 2008 and 2009. I was the mechanic so I'm the one that got the equipment ready for auction. It was also my job to spend the least amount of money possible to meet the criteria of the auction house. Which was to make sure everything started and moved back and forth under its own power, they also suggested that seats be recovered or replaced and everything had decent tires, we also thoroughly pressure washed everything . This gave me plenty of leeway to send some equipment that was in pretty bad shape to auction and still get good money for it. I have enough skill to mask plenty of problems that the casual observer and even I wouldn't know to look for. I would say that if you are buying equipment to flip, you need to buy really well, especially if to plan on establishing any kind of relationships or reputation down the road and plan on doing more of this. Because there will be repairs that are going to be needed. Even if your plan is too buy low right now and just hold on to the equipment until prices come back around. I was able to hide dead cylinders, large hydraulic leaks, worn out hydrostats, broken 4wd's, etc. Since you don't have the opportunity to really work any of the machines you can't really tell what they will do under a load. I would think that you would need to be very knowledgeable in the type or brand of equipment you are buying, be willing to bring wrenches to pull reduction case, and differential oil check plugs to check oil condition or if there is even any oil there (no oil, no leak), and crack injector lines to make sure all cylinders are running, remember the only requirement is that the machine move under its own power for the day of the preview and up to and off the auction block. I was there early both days, putting air in tires and jump starting machines with dead batteries, trying to insure my boss got the most for his equipment that he could.

I was recently given a machine that I decided to flip, free was almost not a good enough deal, because what looked like a minor repair ended up being much bigger than I had hoped. I was not willing to hide the condition since it was my name and reputation as a local equipment mechanic, so I sucked it up and repaired it. It dropped my profit margin considerably.

Good luck, I hope you are able buy right and make some money.

Brian

edit - For the record I did not drain any fluids to hide a leak, but I did plug some weep holes and stuff absorbent pads around stuff where they couldn't be seen to slow down some leaks.

 

[dmay]

Going to an auction in two weeks to look for one I can buy and sell later. I know the basics of how to check a tractor but haven't been to an auction. I guess they don't let people try them out do they? Any other auction tips appreciated.

If the auction is at a private farm site, try contacting the owner directly. Discuss the tractor history and see if he will permit you to come over and take a closer look. Lift a hay bale to check FEL. Hook up 3pt equipment. This has worked for me in the past.

If the auction is at a public facility you usually have a preview time where you can start and minimally operate.

 

[dfkrug]

The auctions I have been involved in have a preview day. You can pretty much crawl all over the machines and drive them.

Good post, Brian.

In the current economy, you can get some deals again at auction. For
a long time, I would see insane prices paid for equipment with problems.

It is hard to win against fools who will not carefully inspect a tractor
first. I would bring a bunch of keys and a portable jump-start box to
the inspection time, and if you can not start and drive the machine,
assume the worst, and pay accordingly.

 

[Duffster]

haven't been to an auction. I guess they don't let people try them out do they?.

I suggest going to several auction to get the hang of things before trying to purchase at one.

Auctions are fast paced and can be a bit disorienting if not prepared.

 

[sweettractors]

I have bought thousands of pieces of equipment and tractors at auction. Here is what I can suggest: 1. If you can't start it, walk away. 2. Check all basic functions 1 day before the auction starts and ask questions about the tractor (sometime the owner is around). 3. Have a predetermined maximum bid established in your mind before the auction starts and when it hits that amount, walk away. 4. Give your bid the the auctioneer, not a floor man. 5 Keep eye contact with the auctioneer while your item is selling. 6. Make sure, that there is a live bid besides just yours and the auctioneers. Ken Sweet

 

[blueriver]

As an auctioneer licensed in many states I can tell you that we always get folks dropping in the week before the sale to inspect items ... I never turn them away.

If you don't ask you won't get ... study your prices before you go. And do not forget ... when the auctioneer says sold ... ITS YOURS !!

 

[flusher]

Going to an auction in two weeks to look for one I can buy and sell later. I know the basics of how to check a tractor but haven't been to an auction. I guess they don't let people try them out do they? Any other auction tips appreciated.

Generally, the auction outfit has a preview day before bidding starts where you can check out the tractor, maybe even drive it around. The auctioneering outfit usually fires up the tractors on the day of the auction before the bidding starts but due to liability issues generally does not allow buyers to test drive them then. All the auctions I've attended are "as is, where is" deals. If there is a problem with the engine, tranny, hydraulics, etc, those defects are supposed to be revealed by the auctioneering outfit before bidding starts.

Be sure you understand the terms and conditions of the auction before you bid. Some auctions require payment by cash, certified check or letter of credit from your bank. Check this out before you bid. Lately around here credit cards are being honored more frequently at auctions.

 

[sweettractors]

All the auctions I've attended are "as is, where is" deals. If there is a problem with the engine, tranny, hydraulics, etc, those defects are supposed to be revealed by the auctioneering outfit before bidding starts.

Here, the auctioneer can announce what is good about a tractor, however, they don't because of implied warranty. One thing that they cannot sell in KY, is a tractor with a busted block or welded block. This must be announced. Ken Sweet

 

[Giles]

Over the years, I have bought many items at auction. The best advise for you has already been given.
I might add that when you look at an item, decide what you would offer if you were buying privately from a widow woman! Write the offer down and don't bid over this amount:thumbsup:

 

[scoutcub]

Agreed all good advise. I've also bought many things at auction, some have been great deals, others not so great. It's easy to get caught up in a bidding war, stay firm with a price. Extensive research about what you're buying is essential...check Ebay, CL, numerous other sites. Don't forget that state sales tax will be added, (unless you have an exemption) along with auction fees, that all has to be added into your high offer.
Good luck!

 

[blueriver]

along with auction fees, that all has to be added into your high offer.
Good luck!

Speaking of that ... are you referring to a buyers premium? I have yet to use one at my auctions ...

 

[brin]

Years ago my neighbor and I went to a farm equipment auction ( Ken Sweet and others have probably seen this many times ) anyway we knew the autioneer and the aution started and I was bidding on an item and so was my neighbor as were many others in attendance and the autioneer, our friend who we were standing right in front of began to give us both an ugly look and ignored our bid and sold it to someone else..After that item was gone he stepped down and politely told us we were bidding against each other and way over the value of the item...It was our first aution and we learned a valuable lesson...Just for what it's worth..be careful - keep your emotions in check and keep your eyes and ears open.

 

[scoutcub]

Speaking of that ... are you referring to a buyers premium? I have yet to use one at my auctions ...

Yes...I've seen from 3% to 13% at many auctions. Some are dependent on how you pay, cash, certified check etc. Others are dependent on the selling price, etc.

 

[Soundguy]

yep.. know what you can reasonably get out of it.. that tells you how much you can put in it.

Ideally one with a small easilly correctable mechanical flaw.. or good mechanicals.. but ugly. Many times a 20$ tub of bondo, 5$ of sand paper, 8$ of primer an cheap 25$ gallon of tractor enamil, plus an ugly 1200$ tractor, plus a couple months of weekends of work, and perhaps a hundred bucks in incedentals can get you a 3500$ tractor that you can let go for 3000 or 2800 even and still make some cash.

soundguy

 

[Giles]

One other thing that I have witnessed, especially at large auctions, is that there are "placed bidders" to get the price of an item up
I recently went to an auction and saw three individuals, with clipboards, bid against each other and other bidders on nearly every item---and they never bought a single item
Surely I am not the only one that noticed that

 

[blueriver]

One other thing that I have witnessed, especially at large auctions, is that there are "placed bidders" to get the price of an item up
I recently went to an auction and saw three individuals, with clipboards, bid against each other and other bidders on nearly every item---and they never bought a single item
Surely I am not the only one that noticed that

Thats excatly why our company does not handle a consignment auction of any kind ... all our auctions are absolute and every item sells to the highest bidder...regardless of the last bid.

 

[bp fick]

One other thing that I have witnessed, especially at large auctions, is that there are "placed bidders" to get the price of an item up
I recently went to an auction and saw three individuals, with clipboards, bid against each other and other bidders on nearly every item---and they never bought a single item
Surely I am not the only one that noticed that

shill bidding. Sometimes illegal. Seen it. Just look for it. If you are up against it, hold back your bidding. It's a way of leaving a reserved bid. At a break, ask the auctioneer what's up with that?

 

[zzvyb6]

If you intend to buy a tractor, take the steps necessary to bring it home right after the sale. Even before bidding, watch the usual folks who help themselves to parts, tools, pins, keys, cables, manuals and even weights.

If you leave it there for a while, 'things' will disappear. You'll need those 'things' to run it.