7 Helpful Tips for Bidding on Farming Equipment at an Auction (Live or Online)
Key Points In This Article:
- How to prepare for farming equipment auctions.
- Where to find financing options for farming equipment.
- Tips for live and online auctions.
- How to prepare to ship your heavy equipment home from auction.
Farming equipment auctions are exciting events. The buzzing atmosphere of the room, the range of items up for sale, and the possibility of winning the right piece of equipment at the right price feel energizing. While live auctions are an event unto themselves that require preparation and strategy, online auctions for heavy equipment are increasingly accessible and require some similar tactics. The logistics may be different, but the planning and research are very similar. Here are seven tips to help you succeed at your next farm equipment auction.
Step One – Make a Plan
Walking into any situation without a plan leaves room for confusion. This can ring true, especially during an auction, whether it’s live and in-person or a timed, online auction. Bidding for used farm and agriculture equipment or construction machinery can get quite competitive. Buyers who come prepared and know exactly what they want have a much greater chance to walk away with the machines they need. Those who attend without a plan or clear understanding of which machine they want will either walk away with nothing or find themselves at risk of overbidding on the wrong items.
Tip One: Do Your Research in Advance
The first step of your plan should be to determine which pieces of machinery or equipment you need to prioritize. Are you in need of one specific piece of machinery? Are you looking to expand your operations with several equipment pieces? Or are you hoping to upgrade your current machines at the right price but could make do with the ones you already have?
The next step is to decide which make or model you’re looking for. If you are partial to certain manufacturers, you’ll already have a head-start when you begin looking at auctions to participate in. Most auction websites will list the equipment by categories, including the manufacturer. When you know exactly what you are looking for at an auction, you’ll have an easier time deciding which events to participate in.
Many auctions have online options for participation or completely online events, making it possible to attend more auctions than were possible ten years ago. Whether you’re planning to be there in person or want to participate online, you still need to research the machine in advance. Having a reliable mechanic inspect the equipment gives you the confidence to place bids on a machine that will function once you’ve purchased it.
Tip Two: Research the Cost
Now that you know what machines you’re looking for and which makes and models you prefer, you can research the value of the machines. Heavy equipment auctions are great places to find a quality, used equipment without the price tag of brand new models, especially for industries such as agriculture and farming, construction, and even oil and gas and exploration. Having said that, no one wants to overpay for a used machine either. This is where cost research in advance of auction day can really save you money. Market research or using a resource, such as AG Dealer, can help you browse the market for fair prices on used machines and equipment.
Tip Three: Establish Your Maximum Limit
Once you research the estimated values of different machine models, you will also need to establish your limit for bidding. Setting a number and sticking to it will prevent you from getting caught up in the excitement of the moment and bidding beyond your budget. Researching the list of items up for auction is also a wise idea so you can plan ahead what machines you’ll
Browsing the inventory listings in advance of the auction dates helps you decide which pieces of equipment to target your bids. Having multiple options means you can have more flexibility when bidding. You can rank your preferred machines in order, so you know that if the machine you really want goes beyond your maximum price, there is another machine on the listing that you can bid on as an alternative.
Possible Financing Options
Some auction houses that specialize in industrial and farming machinery will offer financing options to buyers to help them get the equipment they need on a financing plan. For example, Ritch Bros. has heavy equipment financing options available that buyers can apply for online in advance of the auctions. Another possible funder is CWB National Leasing for businesses needing additional funding for equipment purchases.
Don’t Forget the Shipping Cost!
Another important factor to consider when planning your bidding strategy and the upper limit is the cost of shipping. You can research in advance the possible cost of shipping a machine by getting a quote based on the make and model you’re looking for and the maximum distance you can afford to ship. You can then base your bidding limit on how much you’d need to spend on shipping. The last thing anyone wants is to win the bid on a combine harvester they need and want, only to realize that the cost of shipping is going to sink their budget because they failed to research that part of the purchase in advance.
Step Two – Prepare for Auction Shipping
Before the auction date or an online auction goes live, the auction house website will have a list of the items that will be available for bidding. You can browse in advance which types of equipment are being sold, along with the locations. If the auction is online, you’ll also be able to see what machines will be available for online bidding during the live portion of the timed auction. Most auction companies, such as Ritchie Bros., make it possible to access inventory listings on their website for all their upcoming auctions.
Researching the inventory listings of several auctions in advance can help you decide which events are worth your time. A certain auction in July may have more harvesting equipment listed in the inventory, while an August auction may have more tractors. Depending on what machines you’re looking for will help determine which auction events you want to participate in.
Tip Four: Research the Seller
While researching the machines in the inventory listings and deciding which ones you’ll bid on, it’s also important to research the seller. The inventory listings or catalogues will usually list the location of the machine and the deadline to remove the item. These are essential details to know so you can plan in advance to meet those requirements and inform your shipping company or driver. Knowing how far you’ll need to ship a potential purchase will also help you factor in the cost of shipping.
Tip Five: Use an Instant Quote Tool for Shipping
Our free shipping calculator makes it easy to research the cost of transporting the machines you’re planning to bid on. Our calculator gives you a free, instant shipping quote when you enter your pick-up and drop-off locations and the dimensions of the machinery. You can also save your quotes so that once you win your bids, you can publish your quote and get ready to ship.
When you publish your shipment to our free load board, from there, a driver in our network of experienced, professional heavy haul truckers will claim your shipment and get in touch with you to confirm the details. Before you know it, your equipment will be on your property.
Step Three – Set Boundaries and Follow Them
As we said earlier, auctions are exciting events that can either induce high adrenaline or anxiety. The best strategy to avoid either extreme is to make your plan, do your research, and then set and follow boundaries.
Tip Six: Pay Attention During the Event
In tip number three, we emphasized that you should set a maximum limit for your bids in advance. That way, you’ll have a self-imposed trigger to avoid going over your limit and having regrets. This boundary will only work if you’re paying close attention on the event day.
For in-person auctions, this means paying close attention to the proceedings, following along with the momentum of bids, making yours at the right times, and avoiding exceeding your maximum. It can be easy to get carried away at the moment and raise your bid to keep the competition going, but if you bid beyond your means and the auction stops on you, you’ll be in a very difficult position.
With timed online auctions, you’ll also need to pay attention to the proceedings. Many online auction sites have specialized apps you can use to monitor your items and get alerts when the bidding price increases. Some online auctions will run over the course of a week, so staying up-to-date is the only way to remain in the running. You’ll especially want to pay close attention to the action in the last forty-eight hours of the auction.
Tip Seven: Ship Your Machine
If your bid is the winner, congratulations! All that’s left to do is settle the payment and ship your equipment. If you already did your preparation for the auction, you’ll already have a shipping quote, especially if you used the Trusted Dispatch Shipping Calculator. If you did not prepare in advance, or you went with a different model than your original quote, it’s not too late. You can easily get a free quote instantly with Trusted Dispatch by following the same three-step process:
- Enter pick-up location
- Enter drop-off location
- Enter in the specs and dimensions of the machine that needs hauling
With your new shipping estimates or your previously saved quote, you can post your required transport details to our load board. You’ll be notified as soon as a driver from our network of experienced heavy haul truckers claims your load.
When you ship from an auction site to your location, you want to have peace of mind that your equipment arrives in the same condition you purchased it in. Our drivers follow high safety standards to ensure your equipment is chained down properly, that windows are covered for protection, and other measures are taken to keep your purchase safe while in transit. If you have any questions, our customer support representative is happy to help.
Shipping Equipment From an Auction
Trusted Dispatch is your reliable heavy equipment shipping company with drivers across North America. Start by getting your free quote, then post your shipment once you win your bid, and we’ll help you get your machine moved on time. We already work in partnership with companies like AG Dealer and Ritchie Bros. because we have the experience to pick up loads from any location. You can have peace of mind that your new purchase will arrive safely when Trusted Dispatch transports it.
