Making a decision to retire older utility vehicles is a relatively easy decision; actually selling such vehicles to recoup some of their value may not quite as easy. There are several ways to get rid of such equipment and the best way for a company to see a return on investment needs to be carefully chosen.
When purchasing a new truck, using the old one as a “trade-in” may not be the best idea since a dealer usually has the advantage in this situation and a buyer usually agrees to the figure offered as a trade-in. Often, the best way to dispose of used equipment such as a dump truck, bucket truck, or a digger truck is through an auction. Following is some important information about various ways of selling heavy-duty used equipment!
Knowing the various options available for disposing of old equipment will enable a seller to weigh all of options and ultimately make a decision that is the best way to sell such used trucks at that time.
- Employees – One way of retiring used equipment such as a bucket truck or a vehicle that was acquired at a digger sale is to allow employees the first opportunity to buy such equipment. Offers are usually made through a sealed bid process. This is actually a good sales option for the company as well because a ‘middle man’ has been eliminated and more money can be made.
- Online – For anyone familiar with e-Bay, this is just one of the least inexpensive ways to find potential buyers for used equipment. Although e-Bay claims to be the largest online marketplace in the world, many buyers prefer purchasing specialized items such as heavy-duty vehicles through an online auction site whose only focus is selling this type of equipment.
When utility trucks are sold through an auction company, it is generally open to the public. Everyone using this selling medium must be responsible in becoming familiar with the process for buying and selling in this fashion, including the schedule and the type of used equipment that is being sold.
Following are some of the benefits of selling used utility vehicles through an auction house and why it is preferred by many owners:
- Shorter Liquidation Time – Auctions are held on a very regular basis; therefore, it does not take a long period of time for vehicles to come up for sale, thus turning expenses such as maintenance and insurance into investment opportunities. These auction houses also have marketing strategies that get vehicles before many qualified buyers.
- Prices Driven By the Market – Buyers determine the price of vehicles through the bidding process, with the only exception being the seller’s option to set a reserve price; if it is not met, no sale will occur and the equipment will not be sold for a ridiculously low price.
- Fewer Closing Worries – Vehicles sold through auction companies are sold “as is;” therefore, an owner does not have to worry about anything to do with that piece of equipment once the bidding has ended. Bidders have the option to inspect all vehicles prior to the sale and dealers clearly post the closing procedures and payment arrangements, both of which are generally non-negotiable.
It is important to not jump into selling used equipment without at least a basic understanding of the value of the vehicles that are being sold. There are some good online sources for determining such worth, such as the Black Book (blackbookusa.com), the Truck Blue Book (truckbluebook.com) and the National Automotive Dealers Association, or NADA (nada.com/b2b), all of which contain valuable information about all types of vehicles. These websites provide valuation guides for both medium and heavy-duty trucks and are updated on a regular basis.
Hopefully, the information provided above should allow anyone to learn just how to sell utility vehicles at an auction!