If you are looking at selling heavy equipment that you own, there are a variety of outlets you can choose from. Whatever you are looking to put on the market, whether you want to sell used construction equipment or farm equipment, you want to ensure that you get the most you possibly can. Selling to equipment brokers comes with high commission fees and overhead costs, plus no guarantee of sale or price. Selling your equipment to dealers may be beneficial for trade-in value, however, they often offer the lowest return to the sellers, come with tons of extra costs, and have no guarantee of sale or payment time.
With the options above not being the most beneficial to those selling heavy equipment, typically they are left with the decision to either sell privately or sell the equipment at an auction. While both have their benefits, in the end, one option favors the sellers more than the other. Let’s take a look at selling heavy equipment at an auction compared to selling privately.
Selling Equipment At An Auction
When it comes to selling equipment and machinery at an auction, generally there are two options to choose from: unreserved or absolute auctions and reserved auctions. Many people believe that auctions are the most convenient method of selling their heavy equipment quickly and getting a fair price. However, unreserved auctions are only as good as the experience, skills, and market reach of the auction company. Additionally, auction services usually come with a price.
Reserved auctions aren’t any better as they require a lot of time, effort, and money to be put into the auction, with no guarantee of the equipment selling. Many buyers avoid reserved auctions because they are unsure if the equipment will be sold, meaning there is generally less competition, resulting in lower prices.
Lastly, the commission fees at auctions are often an upwards of 20 percent for the seller and an additional 10 percent premium to the buyer for transaction fees.
Selling Used Heavy Equipment Privately
Many people interested in selling used equipment choose to sell it privately. Private equipment sales can often offer the return on investment that you are looking for. Additionally, there is no middleman controlling the process or setting the price for you.
The problem that some people see is that private selling can require a large investment of time and money from the seller. When selling through classifieds or free online listings, there’s potential for a lot of hassle and valuable hours spent contacting potential buyers, arranging inspections, and dealing with sketchy buyers. Basically, beyond price, a lot of the process is out of your control and the risk can be high.
However, you can minimize your cost, risk, and time spent by choosing an industry-targeted online listing service that is secure, simple to use, and lets you control the selling process.
Heavy Equipment Seller, for example, is a safe, secure, and industry-targeted online platform for selling used construction equipment, used agricultural equipment, and other heavy equipment and machinery. Unlike auctions, Heavy Equipment Seller does not take any commission for the sale of equipment. All you have to pay is the subscription fee, and you have entire control of the selling process.