Have You Heard About Auction Financing? Or do you Want to know how you can have more buying power at auctions? Here’s everything you need to know about it.
In an auction house, it’s very normal to see people getting agitated… This is especially the case when a property or equipment that draws a lot of interest goes up for a bid. But do you have enough money to buy at an auction?
Let’s face it, participating bidding auctions require you a huge amount of money. If not, you’re either going to lose an interesting bidding item or you’ll also lose potential clients in the run,
That’s when Auction financing from Trade finance Hong Kong does the help. Auction financing can help you have the purchasing power you need. That way you can be more assured you’ll have the purchasing power you need at the auction.
To help you out, I want to talk to you about how auction financing works. I’ll also go into detail as to why you should consider auction financing, and how to get it.
Why Buy Equipment at Auction?
You need to widen your knowledge before you get involved with everything related to auction and auction financing. There are quite a few reasons why a number of business owners buy equipment at auction. So… is buying items at auction beneficial?
You can find almost anything at an auction. Whether you are looking for heavy construction equipment to any restaurant equipment or any kind of business equipment, purchasing them at an auction is one of the best choices for your company.
And you just can’t afford to sit one night and bid $100,000,000 or more. Well, that’s when you needed financial assistance at Trade finance Hong Kong.
Reasons To Buy At Auctions
Here are the reasons why you should buy equipment at an auction.
- Most equipment at an auction still has value even if it’s used. You can assure that the equipment that you’re going to get is well-maintained and not malfunctioning.
- Most items at an auction are sold at a lower price. When it comes to equipment sold at an auction they are most likely used equipment… so naturally they will be offered at a lower price. Yet the equipment can work just as well, or almost as well, as its new counterpart. Just think about the money you’ll save when you buy equipment at an auction. The price of new equipment is often equivalent to two used equipment.
- Buying used equipment can also help you avoid the initial depreciation. Just like new cars, new equipment such as trucks and tractors will decrease its value once you start using them. Usually, brand new equipment will lose 20% to 40% of its value in a span of 12 months.
Tips Before Buying Equipment At Auction
To ensure that the equipment that you’re going to buy is still in good condition, it is advisable to inspect the items first.
1 Pay Attention
Be wise when you are buying equipment at auction. Pay attention to details especially if the equipment that you are going to buy is used in farming or construction.
Aim for the equipment that is aged three years to eight years old, these are the items that most farmers and business owners want. Most of that equipment is still in good condition and since it was at an auction, you could buy it at the price that suits your budget.
2 Keep Your Head
The auction house is an exciting place but you should not get carried away. Stay calm especially when an item on the bid has attracted a lot of interest. It is okay to keep on bidding.
But, remember that when the mallet goes down and you are the highest bidder, you are automatically committed to the item legally.
3 Try For The Final Word
If you have an interest in an item that is not sold during the auction, you can always ask the auctioneer if you can make the last bid. Vendors often sell their items for a lower price once the auction ends. If you are a business owner, you can take advantage of this situation to purchase the equipment that you need at a lower price.
If you’re ready to get the budget needed for your auction this weekend, take the call now at Trade finance Hong Kong.