Buying an excavator at auction can be an exciting and cost-effective way to acquire heavy machinery for your construction or excavation needs. With the potential to save significantly compared to purchasing new or from a dealer, auctions offer a unique opportunity to find quality equipment at competitive prices. However, the process comes with its own set of challenges and risks, especially for those unfamiliar with the auction environment. Without proper preparation, you could end up overpaying for a machine with hidden issues or facing unexpected costs post-purchase.
This guide is designed to help you navigate the auction process with confidence. From researching market values and inspecting the equipment to bidding strategically and arranging reliable transportation, we’ll cover every step to ensure you make a smart, informed purchase. When it comes to getting your excavator from the auction site to your location, Freight SideKick offers specialized transport services tailored for heavy and overdimensional loads, ensuring your investment arrives safely and on time.
Research and Preparation
Success at an auction starts long before the bidding begins. Proper research and preparation are crucial to ensure you’re getting a good deal on a reliable machine.
Understand Market Value
Before you place a bid, it’s essential to know the fair market value of the excavator you’re interested in. Prices vary widely based on factors like the machine’s age, hours of use, condition, and brand. For example, a used Caterpillar 320 excavator with 5,000 hours might sell for around $50,000 to $70,000, while a newer model with fewer hours could fetch upwards of $100,000. Use online valuation tools like MachineryTrader or EquipmentWatch to get a sense of current prices. Consulting industry experts or dealers can also provide valuable insights into market trends.
Set a Budget
Once you know the market value, set a firm budget that includes more than just the bid price. Additional costs to consider include:
- Buyer’s Premium: Typically 10-15% of the final bid, added to your purchase price.
- Taxes: Sales tax may apply depending on your location.
- Transportation Costs: Depending on dimensions, weight, and distance, shipping a heavy excavator can range significantly. Freight SideKick can help you estimate your shipping costs on the fly.
For instance, if you’re aiming to buy an excavator for $60,000, a 10% buyer’s premium adds $6,000, and transportation might add another $2,000 to $5,000. Ensure your total budget accounts for these extras to avoid overspending.
Familiarize Yourself with the Auction Process
Auctions come in various formats—live, online, or hybrid. Platforms like Ritchie Bros offer live auctions for in-person bidding, while IronPlanet specializes in online auctions, allowing you to bid from anywhere. Each auction house has unique rules, so take time to:
- Register in advance and understand deposit requirements.
- Review the auction catalog to see available excavators.
- Read the terms and conditions, including payment deadlines and pickup policies.
Understanding these details will help you avoid surprises on auction day.
Inspection Tips
Inspecting the excavator thoroughly is one of the most critical steps in the buying process. Auction purchases are typically 'as-is,' meaning no returns or warranties—what you see is what you get. Here’s a detailed checklist to assess the machine’s condition:
General Condition
- Visible Damage: Look for dents, cracks, or signs of major repairs. Be wary of fresh paint, which might hide rust or other issues.
- Rust and Corrosion: Check the undercarriage, boom, and stick for rust, which can weaken the structure over time.
Hydraulic System
- Leaks: Inspect hydraulic lines, cylinders, and hoses for leakage. Even small leaks can indicate larger problems.
- Fluid Levels: Ensure hydraulic fluid is clean and at the proper level. Dirty or low fluid suggests neglect.
Engine
- Fluids: Check engine oil, coolant, and fuel levels. Look for contamination (e.g., milky oil could indicate a blown head gasket).
- Operation: If possible, start the engine and listen for unusual noises like knocking or excessive smoke, which may signal internal damage.
Tracks or Wheels
- Crawler Excavators: Examine tracks for wear on sprockets and rollers. Tracks should have even tension and no missing pads.
- Wheel Excavators: Inspect tires for tread wear, cracks, or bulges. Uneven wear can affect stability.
Controls and Instruments
- Functionality: Test joysticks, pedals, and switches to ensure they respond correctly.
- Gauges: Verify all gauges and displays work, as faulty instrumentation can cause operational issues.
Maintenance Records
- Hours of Use: Check the hour meter. Lower hours typically mean less wear, but verify with logs.
- Service History: Review maintenance records to confirm regular servicing. A well-maintained machine is more reliable.
If you’re unsure about your assessment skills, bring a mechanic or experienced operator to the inspection. An expert can spot issues you might miss.
Bidding Strategies
Bidding at an auction can be intense, especially with multiple buyers competing. To avoid overpaying or impulsive decisions, use these strategies:
Set a Maximum Bid
Before the auction, decide your highest bid and stick to it. For example, if research shows the excavator is worth $65,000, and your budget allows $70,000 including fees, set your maximum accordingly. This prevents emotional overbidding.
Use Proxy Bidding (If Available)
Online auctions like Proxibid often offer proxy bidding. You set your maximum bid in advance, and the system bids for you up to that limit. This keeps you within budget without constant monitoring.
Avoid Emotional Attachment
It’s easy to get attached to a machine that seems perfect, but if bidding exceeds your budget, walk away. Another auction and excavator will come along.
Factor in Additional Fees
Your final cost isn’t just the bid. Buyer’s premiums, taxes, and transportation can add 15-20% or more. Calculate these ahead of time to stay within budget.
Post-Auction Steps
Winning the auction is just the start. Next, handle payment and transportation.
Understand Payment Terms
Auction houses have specific payment deadlines and methods. For example, AuctionTime.com often requires payment within 48 hours. Be prepared to meet these terms to avoid penalties or losing the machine.
Arrange Transportation
Transporting an excavator, especially a large or overdimensional one, requires planning. This is where Freight SideKick shines, offering:
- Customized Shipping Plans: Tailored to your needs for the safest, most efficient route.
- Experienced Drivers: Skilled in handling large loads to minimize damage risks.
- State-of-the-Art Equipment: Ensures secure transport.
- Competitive Pricing: Transparent quotes with no hidden fees.
Visit Freight SideKick for a quote and to simplify your post-auction logistics. We always provide traditional customer service with a single point of contact.
Conclusion
Buying an excavator at auction can be a smart financial move, but it demands careful planning. By researching market values, inspecting the machine, bidding strategically, and arranging reliable transportation with Freight SideKick, you can boost your chances of success. The key is preparation—know your budget, understand the process, and don’t skip the inspection. With these tips, you’ll be ready to find the right excavator at the right price and get it safely to your job site.
Get Personalized Assistance
Get a quote today, call 877-345-3838, or email support@freightsidekick.com
