Ok, ……. You have heard buying a truck at auction, is the best buying location for the best deal. Value of the dollar, savings right! You will have to buy it out, at auction close, in full. With either your cash, or through immediate funding from some source.
Yes and No!
Yes, if you know what you are doing and can pay attention to the auctioneer and not have him controlling your bid, instead only taking mark from you at your request. Just saying I have been to a few, where I would bid on the trucks we were trying to purchase. Maxing out at $45k, because the condition is Used, but appearing maintained, sounded good at idle, few years old, and looking for inventory….Grandpa and my uncle took me to the auction in NC, I believe was the first one, they took me too. Grandpa nudging the approval to the auctioneer for accepting the opening bid of $24k.
Depending on what you are buying it at, what are needed, what are wanted, and finding the deals. Auctions are for the patient people who will visit the sites, to buy bulk. However, will walk away from the perceived value.
Buy less than retail, and sell it retail. Buy low – Then sell it for more than you paid, after repairs and completion, including transportation, and your minimum profit margin…..Don’t go over it. Auctions are a volume business.
Online Auctions, can supply you with great trucks, remember these are professional buyers, they buy trucks at a minimum monthly; know the market, and will buy at Auction, then send right back to auction, to resell, 30 days later, to rotate inventory. That really is any auction.
Listening to the engine, changing gears with clutch in cab, Running, if that auction allows. Checking the tires, anything that is a violation and is needing repairs, plus if you see or have any possibilities of anticipated needs. You want to know the truck, max price of offer, and transportation costs from that auction in under 7 days, from purchase. Taking a Class A Tow truck to the auction with you can get the trucks delivered sooner to your home, shop, ect.
Inspecting the vehicles, by following the Semi Truck Inspection points, taught to each driver in order to drive. Solving about 75% of the risk of buying at auction, the balance of risk is in the buy closing price, and expenses.
Is buying this way Ideal?
It is not for everyone. There is always a risk of losing monetary value, from something going wrong. The more you buy the less likely it will be. I have yet to have a 100% guarantee from any vehicle I have purchased. Machines are that way. Everything needs service, just too many variable involved.
For the first time auction buyers-
- Visit multiple auctions, online and in person, and become comfortable with their ways.
- Inspect anything, before you bid, in person or have someone to go perform an onsite inspection for you.
- Find Value, and Figure out your repair costs. Determine Max Price for each of interest of potential buys.
- Buy or walk away.
- Don’t get caught up in the excitement. Have fun, and learn.