Auction equipment.................discuss.

[Vetech63]

Last auction machine I had to work on knocked like it was serving a warrant. I think the customer bought it online, no inspection.

People that buy at an auction site unseen deserve this.

 

[fastline]

I am convinced there is a sucker born every minute. As with ANY sale, the item is being sold for a REASON. That is the very first line item....to figure out why. Sometimes it is going out of business, which usually leads to decent equipment, but no guarantee. What shocks me is what people are willing to pay at auction! Like, if you are going to pay retail, why not go find a private sale where you can truly inspect and test?

But the main issue is pretty much ALL the companies in my area will ONLY auction their equipment. There is no private option.

I will say I got extremely lucky with my last excavator purchase. I was actually calling locals looking for trucking, and mentioned to a guy that I was looking for a hoe. A few things brought her home to me. The guy was a straight shooter and told me about the issues. Mostly being electrical, which I specialize in. He had the machine literally on the lowboy headed to a job and stopped by on the way. A fubar machine is not likely to be taken to a job. As well, the price was FAIR!!!!

Probably the #1 thing I look for with any machine is hackjobs! If I see wire nuts, crimp connectors, panels removed, my interest goes way down! In the case with my excavator, she indeed had issues that not even the dealer could fix, and I have record of it! BUT, nothing was hacked, so it made my job an easy 2hr repair! Look for factory wiring! If owners are not interested in quality repairs, they probably also ignored little things like oil changes and filters.

 

[suladas]

I am convinced there is a sucker born every minute. As with ANY sale, the item is being sold for a REASON. That is the very first line item....to figure out why. Sometimes it is going out of business, which usually leads to decent equipment, but no guarantee. What shocks me is what people are willing to pay at auction! Like, if you are going to pay retail, why not go find a private sale where you can truly inspect and test?

But the main issue is pretty much ALL the companies in my area will ONLY auction their equipment. There is no private option.

I will say I got extremely lucky with my last excavator purchase. I was actually calling locals looking for trucking, and mentioned to a guy that I was looking for a hoe. A few things brought her home to me. The guy was a straight shooter and told me about the issues. Mostly being electrical, which I specialize in. He had the machine literally on the lowboy headed to a job and stopped by on the way. A fubar machine is not likely to be taken to a job. As well, the price was FAIR!!!!

Probably the #1 thing I look for with any machine is hackjobs! If I see wire nuts, crimp connectors, panels removed, my interest goes way down! In the case with my excavator, she indeed had issues that not even the dealer could fix, and I have record of it! BUT, nothing was hacked, so it made my job an easy 2hr repair! Look for factory wiring! If owners are not interested in quality repairs, they probably also ignored little things like oil changes and filters.

A lot of companies simply don't want to deal with trying to sell privately and the auction brings a good return. People with the notion that because it's at an auction is junk have never spent any real time seeing the equipment at them, there is everything from pristine to complete junk. The biggest thing is you must inspect before buying and except for really rare cases expect it's going to need work. A lot of auction prices have crept up to above private sale and it's stupid I agree.

My mini hoe and CTL both auction purchases and have been good. Both had a few issues but nothing major but I got good prices on them. The mini ex was a large company who had a few of exactly the same and just turning over equipment, the CTL was a rental. Mini ex came with a pretty good log of work that had been done to it. The only real issue it had when I got it was electrical, cost about $3500 to fix at dealer. The CTL had 1 broken wire and needed a solenoid for aux hydraulics other then that has been great. I would tend to avoid rentals, but it's been fine.

My big hoe I was at the auction and the prices were stupid one came up privately and I stole it, easily would have paid $15k more at auction. Guy was insanely straightforward about it and the machine has been great, he actually offered to send his mechanic to fix a really minor issue I had with it that was suppose to be fixed before I bought.

 

[hosspuller]

8.25% sales tax??

Local NC County wants an increase to 7.5 %
With the inflation going on, they're collecting more. I tend to vote against any tax increases. Gov't is like a fungus. As long as there's food (money) the organism will grow. The only limitation is to starve the organism to make it efficient and/or shrink it.

 

[aucto]

Well, I think most here know how I feel about it! LOL

It would probably be a good idea to post some pointers for those that just cant resist the appeal of auction equipment. I have a lot of customers that ask me constantly about these machines, some listen and some don't. Those that don't are calling me as soon as the auction machine hits their yard because something has already failed, or is not working properly. I see a TON of threads here that mention a machine that was purchased at an auction, and know that customer feels like they got screwed. I had someone just last week call me about a motor grader they had bought at an auction 4 months ago, and it hasn't run 2 hours since. Nice looking machine for sure, but has major electrical issues keeping it shut down.

So, here is a few things I know and have learned about auction equipment. Please add your .02 and just maybe...……..someone may learn something.

1. Know what you are looking and have some experience with that machine. If your looking for a dozer, at least know how it works and know the basics of checking it out. If you buy something you know nothing about, your just ASKING for it.
2. Don't buy into inspection reports being accurate. Let me tell you how that inspection report came about.
A. The guy inspecting the machine knows how to do 2 things...…..1. start the machine and 2. pull levers. He walks around the machine and may make notes of leaks that are leaving a pond on the ground. He starts the machine then starts pulling levers or moving shift levers and such. If the machine has ANY reaction to said lever pulling, then it is noted as working, whether it works like it should or not.
B. Don't be fooled in how a machine may look (visually). Too many times machines are cleaned up, repainted and decaled, or even sheet metal replaced because auctions KNOW that is what will sell a machine quick. Just because it looks really nice doesn't mean it will operate that way for you.
C. If you are not allowed to actually check the equipment out or run it....PASS! Usually there is a major fault hiding in the shadows.
D. Don't fool yourself thinking the machine looks good and the engine starts right up and sounds wonderful! The engine is only 15% of the operating systems of that equipment on average. It says NOTHING about the electrical, hydraulic, and the rest of the powertrain.
E. If there is a "BUY NOW" price on a machine, is it more than likely a wreck. Most auction places know there is a MAJOR problem and they don't want the machine breaking down during the auction. If they throw a cheap buy now price on it, there is always some sucker that thinks he is stealing it, only to be miserable afterwards.
F. Inspect the equipment YOURSELF. Don't rely On your buddy that only knows lawnmowers. If you have no one, then HIRE someone that does know, it will save you in the long run. Its your money, spend it wisely.

Is there always a diamond in the rough...…….rarely, but it does happen. Auctions I compare to pulling the lever on a slot machine...…….90% of the time, YOUR A LOSER. If you don't do your homework and buy sight unseen (like a lot I know do) then you are just bending yourself over a barrel and trying to hand lube to everyone that passes by.

Please add your advise or experiences!

Well Said man, then here's my little advise

There are a few things to keep in mind when buying used equipment:

- Make sure to research the seller and check their rating/reviews.
- Inspect the equipment before purchasing. Look for any damage or signs of wear and tear.
- Get a warranty or return policy in writing, just in case there are any issues with the equipment after purchase.
- Compare prices between different sellers before making a purchase.

 

[suladas]

Buddy just learned the ultimate lesson in auction equipment, bought a JD CTL few months ago at Ritchie's with over 6000 hours and only looked at pictures and video, and the engine just blew, didn't put 10 hours on it. Already overpaid for the thing, now going to be insanely underwater on it. The part I don't get is, all he is using it for is building a shop and planned to sell it within a year, just rent one and maybe spend a few grand, it's not worth owning to put 50-75 hours on it in a year. Now he's probably going to lose $25k on it maybe more. He's at least lucky because his brother is a HD mechanic and should be capable of fixing it and will save there at least.

 

[Welder Dave]

He could have went and tried it out or at least had his brother inspect it for him. The only thing he might look into is if the seller (owner) new there was a major problem and somehow got it to run long enough to put in the auction and never disclosed that info. It would be an extreme long shot though. I only mention this because there was an XMT 304 welder sold at an RB auction that had a burnt out board and was missing pieces inside when the buyer looked into why it wouldn't work. Not something you can try out at the auction and even if they let you take the cover off, who would think of that on a electric welder. RB refunded his money and I think still charged the seller or there was some kind of consequences for selling a completely dead welder that wasn't worth repairing. Back to the CTL, do you know why the engine blew? Could it have been your buddies fault for not checking the oil or something along those lines?

 

[suladas]

He could have went and tried it out or at least had his brother inspect it for him. The only thing he might look into is if the seller (owner) new there was a major problem and somehow got it to run long enough to put in the auction and never disclosed that info. It would be an extreme long shot though. I only mention this because there was an XMT 304 welder sold at an RB auction that had a burnt out board and was missing pieces inside when the buyer looked into why it wouldn't work. Not something you can try out at the auction and even if they let you take the cover off, who would think of that on a electric welder. RB refunded his money and I think still charged the seller or there was some kind of consequences for selling a completely dead welder that wasn't worth repairing. Back to the CTL, do you know why the engine blew? Could it have been your buddies fault for not checking the oil or something along those lines?

I don't get it at all, I think he thought you couldn't go and inspect onsite? He asked me a few questions about them as I have similar machine and then told me he just bought one. Lost compression in a cylinder, and low in another. I wouldn't be surprised if seller knew. I wouldn't hold my breath on Ritchie's doing anything, but it doesn't hurt to ask for sure.

 

[Welder Dave]

Maybe it doesn't need a full on rebuild? Maybe just pistons and rings and honing. RB in Nisku lets you inspect for at least a week before the sale. Some guys are even checking things out on the day of the sale. No real excuse as the auction site is only 15-20 minutes from Edmonton, not way off in the middle of nowhere.

 

[skata]

Ritchie is where people unload worn out equipment. And skidsteers are by far the most beat up equipment I see there. I would never buy one without seeing it. And even if I saw it, highly unlikely.

 

[John C.]

When I was previewing auctions all the time, I used to see dealer rental iron there. It was usually lower hour units but just a beat up.

 

[chidog]

I remember at an auction one time someone bought an excavator, and the engine blew as the auction driver was on his way to park it. I would think in a situation like that the auction place would have to refund the money or offer a much reduced price?

 

[cfherrman]

I've had good luck with auctions, haven't bought too much i have maybe spent only $2000 total.

Like everything in life you make your money when you buy, so you have to be patient and there will be another one to come along, similar to buying a used car.

My best score was the 1992 Cummins n14 I got for $500 because all the junk that came with it, the better junk I was able to sell for $1100, and now the N14 is in my rig making me money.

 

[suladas]

I remember at an auction one time someone bought an excavator, and the engine blew as the auction driver was on his way to park it. I would think in a situation like that the auction place would have to refund the money or offer a much reduced price?

I'm not sure how it would work, but any buyer who isn't a fool would walk away or only take it at a very big reduction. I know until it sells it's there at sellers risk so something like that would be on the seller. I can't remember though if technically it's still at sellers risk until buyer pays, not when it sells?

 

[suladas]

Ritchie is where people unload worn out equipment. And skidsteers are by far the most beat up equipment I see there. I would never buy one without seeing it. And even if I saw it, highly unlikely.

I totally disagree, you cannot blanket everything like that. There is plenty of brand new iron at Ritchie's. Yes there is plenty of worn out junk, but there is absolutely everything there. My mini hoe, CTL and 25 ton tag came from there also bought plenty of other stuff trucks and trailers there I no longer have. A highway tractor I took for yearly inspection right from Ritchie's cost me under $1k to pass, truck was a lease return and in great shape. I've had 1 nightmare but i've had far more really good buys that were taken care of. The only really bad buy from there was a trailer, which partly was not Ritchie's fault but a shady shop forging an inspection. Plenty of companies sell equipment at a certain age no matter what and sell there because it's a guaranteed sale and Ritchies brings big dollars, a big reason why I haven't bought there in awhile is because of how much higher things go then private sales. There is also tons of companies who sell lease returns there 3-5 year old trucks that many are in great shape. There is bankruptcies, retirements and plenty of other cases where it's a complete dispersal so it's not just problem equipment they are sending, it's absolutely everything. I am not a fan of Ritchie's at all and how they operate, but to say everything they sell is junk is not correct.

 

[chidog]

I've only been to one good auction in my life. It was when my good friends dad sold all his equipment. It went super dirt cheap. Every auction there after everyone bids everything out of site.