The Auction Game

[Sunrise Guy]

As I continue my search for a chipper truck and chipper, I am coming to understand the hustle involved in buying these rigs at auction, and then reselling them for a fairly steep profit. Some of the big used truck and chipper companies I've visited lately appear to have a philosophy that must work for them as they seem to move some merchandise: Buy equipment in any shape whatsoever, paint it so it looks good, and then resell it for three to four times what you payed for it to buyers who value looks over actual mechanical shape. Time and again I'm seeing nice looking rigs in pretty sad mechanical shape. For the buyer, it's definitely a case of: Catch as much of the bad stuff as you can, see if the company will fix it and then pay up or negotiate a new price. The big companies, who will remain nameless here, seem to not give a damn about the actual shape of the rigs. Most of their money is obviously invested in painting facilities so they can whitewash a given rig and then dump it on an unsuspecting customer based on the "Ooooh" factor of a nice looking rig. I've been told, "We did a complete brake job on it yesterday," only to take the rig out and have two calipers lock up on me as soon as I hit 50 mph. Smokin' wheels---great! Some brake job. I've had other similar incidents, but I don't want to go over all of them here.

So---Who here goes to auctions to buy their rigs? I am thinking of doing this to avoid having to buy from the dealers. As long as I can go with cash in hand and have a carrier lined up to truck my rig back to Austin, I think I'll do fine. It's not like the big dealers are going to do much mechanical work on what they buy before they jack the price up into the sky, so why buy from them? I can paint a rig and do the necessary work to get it running good.

Any experience you have with auctions that you can pass on to me here is appreciated. Thanks!

 

[mckeetree]

The only way to get a really nice truck and chipper is to spend some $$$$. I have an old GMC truck and asplundh chipper that I would sell together for $6,000.00 that would get a man by working local.

 

[John Paul Sanborn]

I know Fred B did it. Bought an Asplundh topkick and drove it cross country back to boulder.

It broke down not too far from homebase, so the tow was not too expensive.

He said that all told with flight out, hotels back, rebuild work and all he still paid less then a comparable truck would have cost locally.

You may want to get it from him though, the story may be better too

 

[Bigus Termitius]

As I continue my search for a chipper truck and chipper, I am coming to understand the hustle involved in buying these rigs at auction, and then reselling them for a fairly steep profit. Some of the big used truck and chipper companies I've visited lately appear to have a philosophy that must work for them as they seem to move some merchandise: Buy equipment in any shape whatsoever, paint it so it looks good, and then resell it for three to four times what you payed for it to buyers who value looks over actual mechanical shape. Time and again I'm seeing nice looking rigs in pretty sad mechanical shape. For the buyer, it's definitely a case of: Catch as much of the bad stuff as you can, see if the company will fix it and then pay up or negotiate a new price. The big companies, who will remain nameless here, seem to not give a damn about the actual shape of the rigs. Most of their money is obviously invested in painting facilities so they can whitewash a given rig and then dump it on an unsuspecting customer based on the "Ooooh" factor of a nice looking rig. I've been told, "We did a complete brake job on it yesterday," only to take the rig out and have two calipers lock up on me as soon as I hit 50 mph. Smokin' wheels---great! Some brake job. I've had other similar incidents, but I don't want to go over all of them here.

So---Who here goes to auctions to buy their rigs? I am thinking of doing this to avoid having to buy from the dealers. As long as I can go with cash in hand and have a carrier lined up to truck my rig back to Austin, I think I'll do fine. It's not like the big dealers are going to do much mechanical work on what they buy before they jack the price up into the sky, so why buy from them? I can paint a rig and do the necessary work to get it running good.

Any experience you have with auctions that you can pass on to me here is appreciated. Thanks!

This principle is en vogue in many other areas of interest besides tree work equipment. You have the right idea. I want to know where to find some of these auctions too. PM me with info please. It is the only way I'll ever get started. I'm interested in making money, not spending it.

I know, I know, I can hear it now....you've got to spend it to make it, right?

I agree, but I'll spend some, invest my mech knowledge and make more. I'm working for me...not the bank and big equipment manufacturers.

Besides...painting is easy.

 

[Canyonbc]

Where do these auctions normally happen...like what states...or is it on a state to state basis...and where is a good place to look when they are.

 

[Canyonbc]

opps.

i also meant to ask how do they work...you bring cash, and the rest is like a normal auction???

 

[mysawmyrules]

We buy and sell through " Ritchie Bros. Auctioneers " search that on google or whatever but that will take you to them and you can search auctions all over north America actually the world I believe. Has features like past auction searches that will give you prices on units sold in the past to get an idea of what to expect and then a real time on line bid at the auction sale itself. In Alberta we use it all the time and purchase equipment all over western Canada and the US north west. Never had a bad deal with them and we have put lots of $$$ through them.

 

[Canyonbc]

Ok. cool. thanks for the info i am gonna start searching now.

 

[Treetom]

http://www.ironplanet.com/index.jsp

Sunrise,

I like some of the features of this auction company--priority bid, Iron Clad assurance, low auction fees, comparibly-speaking-- though transportation fees have kept me from getting too serious about bidding. All the nicer looking- eqiuipment seems to be in the southern states, and CA, TX. For other auctioneers, such as JJKane, I go to Proxy Bid to view archives from previous auctions so I know what the price range is, before I go and bid. At many of these auctions you're bidding against those guys who paint 'em nice and pretty and mark them way up, or just mark them way up. Save yourself a couple, three, four, ten thousand dollars and do your own fixin up. Good luck.

 

[dontbasap]

online auctions

CANYON... take a peek at RENEBATES.com. SUNRISE GUY... they're in Texas

 

[murphy4trees]

I think a lot of bigger companies sell their old trucks, espescially bucket trucks through dealers to avoid any potential liability from an injury due to mechanical failure... I've seen old buckets at auctiosn with the booms cut off, for the same reason.... I did buy a good 45' skyworker bucket at an auction in '89 for about $8,000, which was a good deal, and the truck ran and worked well for many years... Ever since then though just about every auction I've been to has been selling a bunch of over priced junk... anything good sells for close to new prices..
Going to auctions takes time and energy... that could be used to sell and do treework, and then there is travel and transportation... I bought my chip truck locally for 15,000... which seemed like a lot of money at the time, but it only took about 2 hours to do the deal... very reputable comapny that takes immaculate care of their equipment... It is a great truck and I could probably get 15 for it now as is, three years later...
And I just bought a new 2007 bandit 1590 for 38.2... a guy in Jersey wanted 29 for a unit with 900 hours on it... for the 9K difference, we're talking $10/hr... The new machine is certainly worth $10/hr especially with the warrenty..