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February marks the start of auction season in our industry. While auctions will always play an important role in the used equipment ecosystem, they are a “High Risk – High Reward” platform. You may get a good deal, but you may not know the actual condition of the equipment until you use it.

Auctions are so different now than 10 years ago. The market has really changed and with most being online only it is a gamble. Plus add the extra fees and the amount of bidders it is crazy. Dana Sharpe, Z&R Trenching

This year, in particular, the risks are even higher. Here’s why:

1. A Year of Storms

You remember all those devastating storms that hit last year all through the Carolinas and Florida? A record-breaking 3 Hurricanes made landfall in Florida in late 2024. And Hurricane Helene absolutely devastated North Carolina with historic flooding. So tragic.

You can imagine all the insurance claims on equipment that was damaged, flooded or rolled.

Much of that equipment will be sent to auctions this year, so be wary when you bid.

2. Auction Myth: Auctions Have Great Deals

Auctions used to be regional, but now they are online and fully accessible to everyone. Dozens of wholesalers are competing for good equipment the prices go up quickly. Bidding can be especially heated for late-model, low-hour drills, so it’s essential you understand the fair market value so you don’t overbid and overpay. Do some research on current pricing before going to the auction.

3. Auctions Are Big Business

Auctions houses are big, global businesses and they understand how to make a profit. There are a range of fees to use their services; some aren’t obvious until you get a final invoice. Be sure to research all the costs, including freight. Watch out for penalties if you don’t pick up equipment or pay within the designated timeframe. Adding the auction-sponsored warranty? Coverage can be limited and time-constrained so be cautious. Understand all your costs and read the fine print carefully.

Not ready to risk buying a flooded drill, or overpaying for equipment in a bidding war? We have a huge selection of tremendous deals right now! Plus, our salespeople will organize every aspect of the transaction, including inspecting the equipment, checking for liens, financing, arranging freight and accepting payment. We’re here to do all the work so you don’t have to experience the pressure and stress of buying unknown equipment.

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