I buy machinery at auction frequently. Many of my customers do as well — and at times we find ourselves bidding against each other. I also count several auctioneers in this industry as close personal friends. Auctions play an important role in the machinery market, and when they’re the right fit, they can work very well.
That said, auctions aren’t the right solution for every buyer or every situation. Some practical considerations are often underestimated until after the gavel falls.
Time pressure changes decisions.
Auctions move quickly by design. Buyers typically have limited time to inspect equipment, limited time to evaluate alternatives, and limited time to think through downstream implications. Even experienced buyers can feel pressure to act, and decisions made under time constraints don’t always age well.
Lot groupings can change.
Equipment is often purchased with a plan in mind — assuming certain components, quantities, or groupings will be included. In reality, auction lots can change right up to sale day. Machines may be grouped differently than expected, separated, combined, or missing items that were assumed to be included. When that happens, removal planning, rigging, trucking, and even the economics of the purchase can change quickly.
Final means final.
Most auction purchases are strictly as-is, where-is. Once the sale is complete, there’s no opportunity to renegotiate or revisit terms if something isn’t as expected. The buyer assumes all risk.
Removal is often the biggest unknown.
The purchase price is only part of the cost. Removal frequently involves unknowns: rigging requirements, site access, weather delays, labor availability, and coordination with other buyers. Delays or damage during removal can add expense and frustration that weren’t obvious during inspection.
Wear, tear, and unseen issues.
Even with a careful walk-around, there’s rarely enough time to fully evaluate internal wear or operational condition. Some issues don’t surface until a machine is moved, reinstalled, or powered up — if it ever is.
Competitive bidding affects price.
Auctions are designed to discover market value, but competitive bidding can push prices beyond what makes sense for a given application. When bidding runs hot, emotion can override careful math.
The reality after the auction.
For many of the reasons above, a surprisingly high percentage of equipment purchased at auction is never reinstalled. Plans change, costs escalate, missing components surface, or the project no longer pencils out once the machine is on the ground.
Pricing certainty and dealer support.
One advantage of working with a dealer is price certainty. Dealer pricing is typically based on condition, age, comparative new equipment cost, and current market demand. That removes the fear of overpaying in a competitive moment and replaces it with a known, defensible value.
When auction prices seem unusually low, there is often a reason — whether it’s condition, completeness, logistics, or downstream costs that aren’t immediately obvious.
Buying directly from a dealer doesn’t eliminate risk, but it often reduces uncertainty. It allows buyers to compare multiple options side by side and choose the best solution based on timing, budget, and application.
In many cases, we can also offer services that aren’t available at auction: rebuilding or reconditioning equipment, customizing conveyors or systems to fit a specific layout, and test-running machines prior to shipment. Just as important, there’s someone to talk to before, during, and after the sale.
Auctions remain a valuable tool. The best buyers understand their strengths — and their limitations — and choose the buying method that best fits the project, not just the sale-day price.
— Ken Dickert
President, Ben Jones Machinery