Repossessed Construction Equipment for sale
You can get heavy equipment at a fraction of the normal cost at a repo sale.
Banks end up repossessing vehicles and heavy equipment on a regular basis because a certain percentage of commercial loans go into default. In most cases, the bank ends up with the title to equipment it must repossess. To recoup some of the money it lost on sour equipment loans, and to get the equipment off of its books, banks sell the equipment on the open market, usually at auctions.
Research vehicle and equipment auctions in your area as well as online auction sites. Most banks auction off repossessed equipment rather than trying to sell it themselves on the secondary market. Depending on the type of equipment you need, you might find information on upcoming repo sales in industry trade publications or on industry websites.
Identify pieces of heavy equipment that you are interested in bidding on at local auction houses or online auction websites. Inspect the equipment beforehand if possible. Otherwise, carefully examine the specifications listed on the auction site. You want to make sure you get a good idea of the value of the equipment and its condition. Decide on your starting bid and the highest price you are willing to pay for each piece of equipment.
Related Reading: How to Work With Banks as a Licensed Home Inspector
Line up the funds to purchase the equipment before the auction. Some auction houses accept credit cards or allow a few days to complete payment, but many require immediate payment and only accept cash or cashiers checks.
Bid for the heavy equipment you are interested in when it comes up for auction. Begin with your starting bid and do not bid higher than your limit price. Keep a grip on your emotions as it is easy to get carried away in a live auction.
- Large equipment leasing and construction companies often have a stock of repossessed heavy equipment awaiting auction or other disposition. You can sometimes get a good deal by making a cash offer on a piece of equipment as they no longer have to worry about storage or auction fees or other expenses.
- Equipment is sold "as is" at most live and some online auctions. Carefully inspect all equipment before bidding so you are aware of any mechanical problems or other substantive issues. Remember to keep the cost of transporting a large piece of equipment in mind if you are bidding in a non-local auction.