Last Updated on Feb 17, 2020 by James W
If you are in the construction industry you will already appreciate how integral heavy equipment is to your ability to cope with the range of tasks that your business will be asked to undertake.
Funding the acquisition of this equipment is a challenge in itself and when that item needs replacing because it is broken or worn out it that leaves you with a bit of dilemma.
If you visit Equify auctions today, for example, you will see that you should be able to source a suitable replacement at a reasonable price and you might even be able to sell your old equipment through the same platform.
Whether you are looking to add to your portfolio of heavy equipment or want to upgrade what you have it could make sound business sense to go down the auction route.
Here is a look at why that could be the right strategy.
Buying at auction could be better for your cash flow
You won’t need to be told how expensive it can be to finance the purchase of heavy machinery and even if you take out a leasing deal to keep your capital outlay costs down it can still put a big strain on your business finances.
There are several compelling reasons why buying this equipment at an auction could be beneficial to your cash flow.
You need to be able to achieve value for money and enjoy the best possible financial return for your investment when you invest in plant and machinery for your business. If you buy equipment through an auction site you should be able to get true value for money.
A fundamental reason for this is down to the fact that buying used equipment via an auction will almost certainly ensure that you pay a lower purchase price, and that means that depreciation will be lower too.
A major downside attached to buying new equipment is that you will suffer steep depreciation and the item will already be worth significantly less than you paid for before it is even put to work.
When you buy at an auction the depreciation should be considerably lower but you won’t be getting less of a machine, so the auction route is a no-brainer if you want to cust costs and improve your cash flow.
A reliable transaction process
If you have decided that your preference is to buy used equipment rather than new that means you may have to source the item from a range of different buyers and that could leave you exposed to fraudulent sellers.
A big advantage of buying used equipment through an auction site is that you will have an element of certainty in the transaction.
Auction staff will have verified the credentials of the seller and confirmed that the equipment is exactly as advertised. That takes the worry away that you might be financially exposed by the transaction and another plus is the fact that price negotiation is more convenient when it is a bidding process.
Another advantage that auction sites can offer is the chance for you to view a range of potential equipment that you want to buy all in one convenient location.
A heavy equipment auction presents a great opportunity to preview a diverse range of older and newer models, often offering you a great choice than you would be afforded when you visit a local showroom, where they will probably be focused on selling you the newest and most expensive model.
It can often be the case that when you go to an auction preview you might even see an item that you hadn’t previously considered but could turn out to be what you are looking for.
Another point to note here is that some older models enjoy a great reputation for reliability and excellent service and if one of them comes up at auction you might be able to get what you need at a much lower cost.
Get more for your cash
Every business has to work to a budget and if there is a scenario where you could get more equipment or a better model that is within your financial restrictions that has to be an opportunity that needs to be exploited.
You should discover that when you choose to buy used equipment at an auction it allows you to stretch your budget further than you anticipated.
You can often end up acquiring an item of machinery that is of comparable quality to a newer model but costs you a lot less than you would pay in a retail environment like a showroom.
If you can get the equipment you need for your business at a heavy discount it is definitely an option that you should be considering.
Choice of bidding options
Convenience is a major factor to consider when you are in the market for a big-ticket item like heavy machinery.
The good news is that when you find the item that you want to bid for you don’t have to actually attend the auction in order to submit what turns out to be the winning bid.
There are a number of convenient bidding options available to you and you have the ability to bid online as the auction unfolds if you can’t physically attend or you could submit your maximum bid beforehand.
This means you could end up acquiring the equipment or machinery you want for your business without having to leave your office or the site where you are working, offering you minimal disruption to your working day while delivering great value if you manage to win with a bid that is at or below the budget you set for this item.
As you can see, there are plenty of good reasons why you might want to consider using an auction site when you are next in the market for an item of heavy equipment for your expanding construction business.
Auctions can offer some great advantages and deliver good value for money so it makes sense to look at this option.