Making the most of farm equipment auctions means feeling good about the price you paid and the equipment you purchased. It isn't always easy to find a great bargain at a farm machinery auction. However, with the right auctioning techniques, you can bid like a pro.

A used farm equipment auction is a great opportunity for farmers to get a good deal. Before attending a farm equipment auction, consider some of the following:

1. What type of farm equipment auction are you attending?

2. Are you aware of all of the terms at the farm equipment auction?

3. Are you familiar with the average pricing at used farm equipment auctions?

Action Steps
The best contacts and resources to help you get it done

Research the equipment you plan to buy at the farm equipment auction

It's easy to be lost in the fast-paced selling of the auction and not examine closely what you are buying. People who don't do their research end up paying very close to the new price for an old piece of equipment. Before the auction get all of the details on the equipment that most interests you, look up prices for the same equipment if you purchased it new today, then look up used equipment and find the going price for the same year and model at the auction. This way when the auction prices start going, you have an idea of what type of deal you are actually getting.

I recommend: If you plan to attend tractor auctions, look up tractor pricing in the guide available from The Motor Bookstore. Research prices for farm machinery auctions in the machinery pricing guide from Hot Line Guides.

Visit the farm equipment auction before the auction begins or on preview day

Some auctions have a preview day in which people can come to look at the items for sell. Plan to arrive early to get a good view of the item for sale before the bidding begins. Examine all of the pieces of equipment that interest you and ask questions about the hours of use on the pieces. Be certain that you know the condition of the item for which you place your bid.

I recommend: Search for upcoming agricultural equipment auctions and farm tractor auctions at TractorHouse.com and AuctionServices.com.

Get a guarantee on equipment purchased at online farm equipment auctions

Buying anything without seeing it first hand is risky; however, in our world of technology, many do it. While 99% of farm equipment sold at on-location auctions sells 'as is,' some online auctions offer a limited satisfaction guarantee. If you take part in an online auction, be certain to look for this and carefully read all of the details about payment and pick-up. Equipment sales are typically pick-up only with payment required within a specific period.

I recommend: Look for satisfaction guarantees at online farm equipment auctions such as EquipmentTraderOnline.com and IRON Solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are new to farm equipment auctions, visit a few auctions without intentions of buying anything. Make a note of the items and their prices. This way you will have an idea of average pricing when you do intend to make a purchase. Also consider making the most of farm equipment auctions by taking an experienced auction shopper with you.

New farm equipment is expensive, but you can often find good used pieces of machinery at a farm equipment auction. Every piece of farm equipment you can think of will show up eventually at an auction, including combines, tractors, irrigation materials and grain bins. Equipment comes from a variety of sources including farms going out of business or those who have just upgraded their machinery and are selling off the old.

Why look for equipment at a farm machinery auction?

1. Farm equipment auctions will save you money over buying new equipment.
2. You can buy farm equipment to use as parts for your existing machinery.
3. A farm machinery auction can help you find antique equipment to restore for shows or resale.

You’ll find a wide range of equipment, parts and materials at farm equipment auctions. Regardless of what you need, you can often find it through either local or online farm auctions.

Action Steps
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Use farm classifieds to find farm machinery auctions within driving distance

Actually seeing and testing the machinery will leave you in a better position than buying sight unseen, so look for the machinery you need within driving distance. With local auctions, you get the experience of attending a live auction, meeting with others in the agricultural industry and having the chance to buy multiple pieces of machinery.

I recommend: With the Farm Auction Guide, find local and online farm equipment auctions and see the details of the auction. Tractor House also has an online calendar of farm machinery auctions in North America.

Search the online farm equipment auction sites

The Internet has made it easier than ever to find the machinery that you need. Many online auction sites include farm machinery listings. Keep in mind that you'll either have to ship the equipment to your location or pick it up yourself, particularly with large equipment. You may be able to find local machinery for sale at one of the auction sites as well.

I recommend: Ebay is one of the largest online auction sites and you can find farm equipment like tractors in the auction listings. Proxibid allows you to bid online for farm equipment.

Check prices before bidding in a used farm equipment auction

You can find auction results online that will tell you about how much you should expect to spend for the machinery you want. Showing up at a farm machinery auction without knowing the average value can be a recipe for disaster as you'll often wind up spending too much.

I recommend: Use the F.A.C.T. Reports at Machinery Pete’s to learn how much machinery sold for at past acutions or use their calculator for an estimate of worth. View auction results by the category of machinery at Tractor House.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  You'll need to register at online auction sites to bid on machinery during a farm equipment auction. At local auctions, you'll need to bring identification with you in order to receive a bidding number. Take care of these tasks before the auction starts so you don't miss any great deals.
• •  Online auctions often heat up as the time on the auction gets set to expire. Be sure to check in or use automatic bidders on sites like eBay.

Farm equipment auctions are one option for farmers who cannot afford new farm equipment. Knowing your farm equipment auctions basics contributes to finding a really good deal through the opportunity to purchase used farm equipment. Auctions are a great way to find the equipment that you need to make your farm successful.

There are different types of farm equipment auctions. When deciding which type of auction is best for you consider the following:

1. Are you comfortable purchasing from online farm equipment auctions?
2. How much knowledge do you have regarding farm equipment auctions basics?
3. Have you ever attended a used farm equipment auction?

Action Steps
The best contacts and resources to help you get it done

Attend a consignment farm machinery auction

One type of farm equipment auction is a dealer consignment auction. These auctions typically take place on a regular basis two to four times a year all across the country. Multiple dealers or a large group of farmers sells their equipment at these auctions. They choose a central location and split the cost. Some prefer this type of auction because of the variety of equipment. There are usually multiple pieces of the same functioning equipment. However, some dealers use consignment auctions to get rid of equipment that they feel they cannot sell at their dealership.

I recommend: Check Auction Guide or Midwest Auction for consignment auction information.

Look for personal farm equipment auctions

In some cases, farm equipment auctions consist of the farm equipment from one farm. The auction is at the farm location. Personal farm equipment auctions take place when farmers retire, farms close out, or farmers pass away. Some may prefer these auctions because one can see all equipment from a single farm. Many feel that viewing all the various equipment used on a farm gives them a better idea of the equipments' use. For example, if a farmer only has one tractor, you can be certain that it received much use. Tractors on a farm with multiple tractors likely receive less individual use. These auctions are usually on farms that you know personally, which gives you even more knowledge. However, the variety at personal auctions is limited compared to consignment auctions.

I recommend: Check online auction company sites for upcoming personal auctions. Carwile Auctions and Stanley King Land Auctions both offer updates on future auctions.

Explore an online farm equipment auction

The world of technology has changed the way that we auction items. Many of the most popular auctions take place online with bidders in distant cities, states, and even countries. Search for auctions pertaining to your particular needs. For example, look for tractor auctions, livestock equipment auctions, and more. Some prefer these agricultural equipment auctions because they typically last for several days. One can examine the item for auction and then do research and see the bidding price. Farm equipment online auctions are bad in that you can only view auction farm equipment through pictures.

I recommend: Grain Farmer offers online auctions for farm equipment. WW Auctions is also a source for online auctions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Keep in mind that some auctions are absolute and others are reserve. At an absolute auction, the item goes to the bidder with the highest offer regardless of the price. Reserve auctions have a predetermined lowest selling price for the items before the auction ever begins. Being the highest bidder does not mean that you get the item. The auctioneer does not reveal the pricing low to the bidder until after the bidding takes place.

As you look for previously-owned farm equipment on a farm auction sale bill, you can simplify your effort if you know a few key terms. As you familiarize yourself with the auction process, you will come to realize that for farm equipment, auctions in your local area may be a great way to find bargains. As the buyer, you are responsible for knowing the quality of the purchased equipment and for moving the equipment from the auction site to your location.

Besides inspecting and moving equipment, the buyer has other responsibilities. You'll need to pay for the equipment before moving it; you'll be responsible for the machinery after the sale, even if the piece remains on the seller's land; and you will have a stated time period when you must remove your purchase from the auction site.

Action Steps
The best contacts and resources to help you get it done

Absolute auction

In an absolute auction, the pre-owned equipment sells to the highest bidder even if there is only one bid for it. That means a used machine could sell for well under the appraised value.

I recommend: Joe Cotton of Cotton Auctions explains the concept of an absolute auction and a few of the subtleties of the process. Although the website refers to real estate, the term applies to any property, including farm machinery for sale.

Reserve auction

In a reserve auction, the seller sets a minimum price he is willing to accept. If no bid reaches the minimum, the item will not sell. The seller usually pays the auction house whether or not the equipment sells.

I recommend: Woodruff Enterprises levies a fee for listing an item with a reserve price. It bases the fee on the reserve price and collects it from the seller at the time of listing.

As is

Most farm equipment sold at auction is sold on an 'as is' basis, meaning there is no warranty on what you buy.

I recommend: True Blue Auctions provides a glossary of auction terms, including as is. For a typical example of an auction contract containing an as-is clause, check out item 10 at FarmAuctionGuide.com.

Stock

In many cases stock refers to whatever merchandise a merchant has for sale. For farm auctions, stock may be an abbreviation for livestock, as is the case in the terms stock trailer and stock panels.

I recommend: Thornhill Auction pictures a typical stock trailer used to transfer livestock.

Rolling stock

For a farm auction, rolling stock means items on wheels. It includes tractors, trucks and other vehicles. A farm auction sale bill will usually advertise a time for beginning the sale of rolling stock.

I recommend: For a typical sale bill that advertises a time to sell rolling stock, see Montgomery Auction Services.

Commission

A commission is what the auctioneer charges the seller for selling things at an auction. Usually, it is a percentage of the selling price. Be aware that some auctions charge a buyer's premium on top of the commission.

I recommend: DEAauctions.com provides a glossary of auction terms including commission, buyer's premium and many other auction terms.