Time to sell your heavy equipment? We know it can be a hassle, but there are ways to sell your equipment quickly and for the most money. Here are 5 options for selling your heavy equipment.
1. Equipment Broker
Simply put, an equipment broker is an individual or entity that buys and sells for a commission.
Many people use brokers to sell their equipment because the broker uses their long term experience and contacts to negotiate a sell to the right buyer for the right price. For the most part, the seller holds onto the equipment and can even use the equipment until the sale is final.
2. Equipment Dealers
Selling your equipment to a dealer can be appealing because, for the most part, it will be
a quick transaction. Equipment dealers know the market, and understand the industry. The typically have good connections and know where to market your equipment. That being said, you'll probably not get the money you were hoping for. As with most businesses, dealers are trying to turn a profit, which means you'll probably make less money. Think of it as trading in your car. You can sell your car or trade it in to a dealer for considerably less money than you would have made selling it yourself.
3. Private Sale
This is the "For Sale By Owner" option. For some people, this option works pretty well, but consider the time, effort and cost associated with handling everything from listing, marketing, showing, and handling all the paperwork once the sale is made. If you have the time, and are aware of listing sites or groups, this option might work well.
4. Reserved Auction
Auctions have been around for nearly 2,000 years and they're quite commonplace now among both buyers and sellers of heavy equipment. Some benefits of selling at auction are
- Buyers come prepared to buy
- Quick disposal
- Unconditional sales
- Competition fuels emotion and drives the price
- Protection by a reserved price
A reserved auction gives you, the seller, control over the minimum price you're willing to sell for. If the auctioned price doesn't reach or exceed your need, the auction is "passed" and you keep your equipment to sell another day.
Another value proposition of an auction is how the auction house manages the sale for you. Auctioneers know the market and can give you detailed in formation about the expectation for a unit like the one you're trying to sell. The oftentimes will also market your equipment, take care of inspection and pictures and handle the transfer of the equipment to the new owner.
5. Absolute Auction
Like the reserved auction discussed above, the absolute auction only differs in that there is no reserve cost. Buyers like absolute auctions because they feel like they'll get a good deal on used equipment. Most absolute auctions will bring in a higher number of potential buyers for this reason, which in turn drives up the cost of the equipment. Sellers who have a large number of items to sell will sometimes choose this method of selling to dispose of their items quickly.
Time To Sell?
Once you've decided the best way to sell your equipment, you'll need to choose the right dealer, listing service, or auction house. If you need more help understanding the selling process, download our 'Ultimate Guide to Selling at Auction' below.
