Pros and Cons of Buying Construction Machinery at Auction: Inspection and Risk Tips



Pros and Cons of Buying at Auction

Many second-hand construction machines, especially from rental companies or large corporations, find their way to auction. While these auctions can offer great deals, buyers need to be aware of the machine's condition. After all, there’s usually a reason why a machine isn't sold directly from one user to another. Owners often choose auctions for various reasons. They may have too many machines to sell individually, or they may prefer to sell their top-quality equipment through direct contacts, leaving the remaining stock for the auction.

Inspecting Machines During Auction Viewings

Every machinery auction includes designated inspection days. These allow potential buyers—or their technicians—to examine and test the machines. While this can provide useful insights into the machine's functionality and overall condition, there are limitations. For example, machines may have dead batteries or empty fuel tanks, preventing them from being started. Additionally, space is often restricted, and with many visitors on-site, it’s not feasible to fully test all machine functions. You likely won’t have the freedom to take an excavator for a proper run.

How Reliable Are Auctioneers’ Guarantees?

Auction houses like Ritchie Bros. or Euro Auctions offer their own machine inspections, which can sometimes replace an on-site inspection. However, these in-house evaluations have limitations, especially with technical details. After all, the auctioneer’s goal is to achieve high prices, so they may not highlight every defect. Typically, third-party inspections are not available, and auction houses explicitly exclude liability for hidden or undetectable defects. For instance, one major auctioneer’s warranty terms state: “XYZ Assurance’s inspections are NOT intended to detect latent or hidden defects that can only be found by disassembly or diagnostic equipment. XYZ Auctions will not be liable for failing to detect such defects or others.”

It’s also important to note that claims for defects must be made within a strict time frame, often before the machine even arrives if it’s being shipped.

Pros and Cons of Buying at Auction

Many second-hand construction machines, especially from rental companies or large corporations, find their way to auction. While these auctions can offer great deals, buyers need to be aware of the machine's condition. After all, there’s usually a reason why a machine isn't sold directly from one user to another. Owners often choose auctions for various reasons. They may have too many machines to sell individually, or they may prefer to sell their top-quality equipment through direct contacts, leaving the remaining stock for the auction.

Inspecting Machines During Auction Viewings

Every machinery auction includes designated inspection days. These allow potential buyers—or their technicians—to examine and test the machines. While this can provide useful insights into the machine's functionality and overall condition, there are limitations. For example, machines may have dead batteries or empty fuel tanks, preventing them from being started. Additionally, space is often restricted, and with many visitors on-site, it’s not feasible to fully test all machine functions. You likely won’t have the freedom to take an excavator for a proper run.

How Reliable Are Auctioneers’ Guarantees?

Auction houses like Ritchie Bros. or Euro Auctions offer their own machine inspections, which can sometimes replace an on-site inspection. However, these in-house evaluations have limitations, especially with technical details. After all, the auctioneer’s goal is to achieve high prices, so they may not highlight every defect. Typically, third-party inspections are not available, and auction houses explicitly exclude liability for hidden or undetectable defects. For instance, one major auctioneer’s warranty terms state: “XYZ Assurance’s inspections are NOT intended to detect latent or hidden defects that can only be found by disassembly or diagnostic equipment. XYZ Auctions will not be liable for failing to detect such defects or others.”

It’s also important to note that claims for defects must be made within a strict time frame, often before the machine even arrives if it’s being shipped.