Buying farm equipment at an auction can be a great way to save money and get a great piece of equipment. Before you head to the auction, though, you should know what steps to take so that you get the best deal on the equipment that you need.
Compare Offers from Several Mortgage Lenders.
Research is Important
One of the most important things you can do before buying a piece of
farm equipment at an auction is to do your research. You would hope that the seller is giving an accurate description of the equipment and asking a fair price, but you cannot be too sure.
You’ll want to ask some very pointed questions to make sure you get the equipment in the condition that you want. These questions include:
- Ask what’s been replaced on the equipment, if anything. If parts have been replaced, find out why they were replaced and why they were replaced.
- Look the equipment over for wear and tear with your own eyes, if it’s there on site. Look at the tires and other areas that would experience wear and tear.
- Take the time to call around and find out if replacement parts still exist for the equipment.
- Know the
fair market value of any equipment you want to buy so that you don’t bid higher than that amount.
Don’t Get Emotional
One of the hardest things to do at an auction is keeping your emotions level. Many farmers end up bidding on equipment that they don’t need or paying more than they should pay. Before you go to the auction, take the time to think about what you need and what you want to pay for it. If it helps, write it down and bring the list with you. This way you can have a voice of reason alongside you, preventing you from buying equipment you don’t need just because you were caught up in the moment.
Click to See the Latest Mortgage Rates.
Comparison Shop
Even if you have one type of equipment and/or brand in your mind, be open-minded. Look at all of the available options at the auction because you never know when you’ll find a comparable brand at a better price. If you don’t know much about the brand, make sure you do your research making sure that shops still offer repairs on the brand. Don’t make the mistake of opting for a different brand because it costs less only to find out that there is no support available out there.
Work Out Delivery
Don’t forget that if you are buying heavy machinery, you will have to work out the delivery of the product. Some machines are not even present at the auction because of their size. The seller will have a description of the product and pictures, but the machine itself might remain at their shop or farm because having it shipped back and forth would eat away at their profits.
You can probably get a great deal on farm equipment at an auction, but you have to make sure you do your homework. While there are great pieces to be had, there are also those that are not the greatest deal and could leave you paying more for repairs than you intended.
Click Here to Get Matched With a Lender.