One way to sell or buy used trucks and equipment is through vehicle actions. Auctions, which date back more than 2,000 years, are simply a public marketplace where property is sold through competitive bidding, with the highest bid winning the rights to own the item being auctioned.
Nevertheless, there are still a number of misconceptions in today’s marketplace about what auctions are and how they operate, and this creates doubt and uncertainty. Among the more common misconceptions: auctions are only used as a last resort; only distressed property and junk is sold at auction; auctions are fire sales and everything is sold at a discount; there is something wrong with the vehicles being sold and that won’t be found out until after the they are bought; and an auction is an auction.
To get the facts about auctions, I visited with Paul Blalock, vice president of sales for TruckPlanet (www.truckplanet.com), an online auction for buying and selling trucks and trailers. It is a part IronPlanet (www.ironplanet.com), a company that connects buyers and sellers of used equipment worldwide with its exclusive IronClad Assurance buyer protection program (http://www.ironplanet.com/jsp/s/howto/howtoBuy.html?id=19) and family of online sites. These also include GovPlanet (www.govplanet.com), allEquip (www.allequip.com) and Asset Appraisal Services (www.assetappraisalservices.com).
Question: Why should truck auctions be considered as a way to buy and sell used heavy duty trucks and equipment?
Blalock Answer: Used truck auctions provide a way for buyers to acquire, from a vast buyer base, a wide variety of trucks, parts and accessories for a fraction of the cost of new items.
It’s important for sellers to reach the right audience for their equipment, though. Online auctions, by way of example, can consistently reach thousands of buyers from around the world who are interested in trucks and other equipment. A wider audience creates greater competition among bidders and can result in a higher profit for sellers.
Q: How do online auctions differ from traditional brick-and-mortar vehicle auctions?
A: Online auctions are the quickest and most convenient way to buy and sell trucks and equipment because they allow sellers to dispose of equipment from their own locations, saving time and money. Online auctions are also held more frequently than traditional auctions, giving sellers an opportunity to sell equipment more quickly and on their own schedule.
Moreover, online auctions provide a worldwide audience, which results in higher bid participation and better prices for sellers, and a greater selection for buyers. Global reach also allows sellers to overcome local and regional differences, avoid the risk of a slump in their local geographic market and avoid low buyer turnout due to inclement weather.
IronPlanet’s IronClad Assurance buyer protection program guarantees that its equipment inspection reports are an accurate reflection of the condition of the equipment.
Q: Can you provide some general guidelines for selling equipment at an auction?
A: First, sellers need to understand the value of their truck and equipment. Knowing the current auction pricing for the vehicle will help a seller make a more informed decision about when and how to sell the truck.
Sellers must also consider all of the selling costs associated with an auction. Eliminating the need to transport equipment to an auction site can save the seller expensive transportation costs. Auction companies can also tailor the consignment contract to meet a buyer’s particular sales objectives.
Establishing a clear timeline to sell, and setting realistic price expectations for the items for sale, can help sellers determine the best strategy to sell their trucks.
Q: How about some general guidelines for buying equipment at an auction?
A: Before a buyer places a bid, they need to know what they’re buying at auction. Most auction companies will provide some specs of the truck before the sale occurs, but it is also important to learn the true condition and features of the equipment.
Online marketplaces like IronPlanet inspect each truck and publish a guaranteed inspection report online so buyers can review it before auction day.
Like sellers, buyers also need to understand transportation costs before bidding because the cost to move equipment can greatly increase the final price for a vehicle, depending upon its location, weight and other factors. Auctions offering a shipping estimator and reliable transportation options help buyers calculate the anticipated transportation costs and move their equipment with ease.
Finally, buyers need to understand how the auction works, from registering to bidding, through arranging transportation. If the buyer has any questions, they can work with a customer service representative who can help them through every step of the process, whether it’s bidding, financing or transportation questions.
