Now that you have your financing, you can purchase the equipment that you need and want.
However, during an auction, you can’t simply dive in and start enjoying the moment. You could end up wasting the money you just received when your agricultural equipment financing was approved.
So the following are tips you need to keep in mind when purchasing agricultural equipment at an auction:
#1 Conduct Some Research
The most important tip is to always conduct your own research. This can help you be prepared ahead of time. It can help to answer basic questions such as
- What should I buy?
- How much is the equipment it worth, used versus new?
- What is the brand reputation, price and quality like?
#2 Consider Other Auctions That Are Available
If your goal is to purchase used machinery, particularly at farm auctions, then be aware of the fact that they will sell for the highest prices. At farm auctions there are can be big premiums on used machinery. It’s time to check out other kinds of auctions if you are running into this problem.
Other kinds of auctions include online auctions, dealer auctions, and consignment auctions. A consignment auction has items that have been consigned by third parties to the auction (the items are not owned by the auction company).
Most dealer auctions are open to the public only. Those who have a dealer license are restricted from joining the auction.
#3 Have a Good Understanding of the Market’s Rhythm
Timing is extremely important if you are purchasing used machinery. The highest prices at auctions on used machinery are during the year’s first and fourth quarters.
It is smarter to purchase during the year’s second quarter since during that time prices on used machinery are softer. Here is some insight in this post on how to host an industrial auction.
#4 Buy The Agricultural Equipment That Is The Right Age
You need to have guidance when it comes to purchasing old equipment, particularly in terms of the machine’s age.
Your aim should be to purchase those that are about there years old to eight years old.
If you go older than that it may decrease how efficient the machine is, and also machines that are more than 10 years old are less valuable.
#5 Check Out Any Warranty Information
There will be a warranty on agricultural equipment that may cover certain usage hour amounts.
If you are planning on buying agricultural equipment that is fairly new, then there is a greater chance that it will be under warranty still. A warranty can help save you from incurring additional expenses, particularly if the equipment is going to need any replacements or tweaks.
#6 Don’t Allow You Emotions To Take Over
Being at a live auction may have a tendency to mix up your emotions. There is always high energy at a live auction but it is important that your emotions be kept under control.
Focus on your original goal: the machinery’s true value. Know the worth of the agricultural equipment and stay focused on that.
#7 Keep Your Agricultural Equipment In Good Condition
Finally, after you have purchased your agricultural equipment, take good care of it.
You can help to extend the life of your equipment by taking good care of it. The prolonged life will make the equipment purchase worth more, and allow you to use the equipment longer.