Sourcing the equipment for your business can be a headache. First, heavy-duty equipment can be quite expensive, especially when new. Second, while used pieces of equipment are often more than serviceable, finding the right ones can be difficult. Third, the financing rates for the piece you want may not match your budget and timeframe.
One way of bypassing your equipment sourcing woes is auction financing. The process is simple; you register at an equipment auction, bid on the pieces you want, have a leasing and financing company to procure it for you, and repay the company in installments at flexible, competitive rates.
Auction financing is a reliable method for acquiring high-quality machinery and equipment in bulk and at a fraction of their original price. All you need is a loyal and trustworthy auction leasing and financing company to partner up with. If you are a business owner needing heavy equipment in the Calgary area, First Capital Leasing is your best friend. Our 95% approval rate for our auction financing solutions and our unlimited financing and leasing amount make us the perfect choice for all your equipment.
Why You Should Procure Your Equipment At An Auction
If you are a new business owner, you may be surprised that an auction, of all things, could be the key to solving your equipment procurement conundrums. Indeed, auctions are widely recognized as an effective way of acquiring industrial assets. Whether it is online or on-site, gathering a large selection of equipment in one marketplace and giving all participants a chance to bid on the pieces they like has its benefits.
Here are some of the reasons why so many business owners flock to auctions to get the hardware their business needs:
Large selection of brands: Some business owners like to get all their equipment from the same dealership, but some others prefer to pick and choose their supplies from a variety of brands. If you want to get a bulldozer from John Deere but an excavator from CAT on the same day, an auction is for you.
Convenience: Have you ever located a prime piece of equipment from a private seller only to realize that the seller is situated halfway across the country? Unlike private sellers who may be located in inaccessible locations, auction yards are usually organized near major highways, airports, and shipping ports. This allows you to swoop in, inspect any piece you would like, and come away with your successful bids in one single trip.
Seals of quality: The single greatest fear of buying used is that the piece of equipment may break or cease to function prematurely. That is why some business owners are willing to spend a premium for the peace of mind that comes with new equipment.
However, most of the equipment for sale at auction will have verifiable proof it is in working order. For example, you will find that many of the machines are paired with an industry-recognized condition certification awarded by professional inspectors. Sellers will also often include a maintenance record so that you know exactly how the machine has been taken care of.
Clear ownership: Inexperienced buyers may sometimes make the mistake of purchasing from a private seller a piece of equipment without a clear title. Not only is this illegal, you would not even be able to register and insure your newly purchased equipment.
This is not a concern when buying an auction, as only equipment with clear titles is sold. Anything you buy is certain to be under your full ownership.
In short, auctions are effective places for business owners to source their equipment because of their unique combination of positives. Where else can you find thousands of machines of multiple makes and models一all clear from any liens and at affordable prices一just waiting to be transported from the lot?
Calgary Equipment Procurement Specialists
As a business owner, you are likely to find many excellent deals at an auction. Securing them, however, may present a challenge. Affordable as they are, a whole fleet of auctioned tractors and trailers can still cost a pretty penny.
To make sure you can procure all the equipment you need to keep your business running, partner up with an equipment financing and auction leasing company. Keep your capital freed up for operations with loans to secure the machinery and equipment you need from auction. The logic is that your newly acquired equipment will help offset your loans over time and turn your debt into a profit.
For the past 25 years, First Capital Leasing has been helping business owners in Calgary procure the equipment they need to launch and expand their business. To take advantage of our economical rates and our flexible payment plans, call us at 403-255-5508 or fill out the online contact form.
Q: What happens when bids for a piece of the equipment do not reach the reserve price?
A: In that case, the fleet vehicle is not sold. However, you can still try contacting the seller directly after the auction to work a deal.
Q: Are there fees I need to be aware of?
A: Yes. If you buy a piece of equipment at auction, you will likely also need to pay taxes, a buyer’s fee, and a registration fee.
Q: Can I get financing directly from the auction house?
A: This is not always possible. That is why bidders obtain loans or financing or leasing agreements from equipment financing companies like First Capital Leasing.