Tips For Buying Agricultural Equipment At Auction

Tips For Buying Agricultural Equipment At Auction

Keeping your agricultural equipment in working order is one of your biggest challenges as a Canadian farmer. Your equipment can break down when you least expect it. New replacements do not come cheap, however. A new tractor, for example, can cost tens of thousands. 

First Capital Leasing helps farmers in Alberta and Canada at large finance and lease all the agricultural equipment they need to yield bountiful harvests and generate profits. Our auction financing services can provide you with enough capital to procure any equipment you want at auction without breaking the bank. 

Given the prohibitive costs of new farming equipment, Canadian farmers have been increasingly turning towards auction financing to procure reliable equipment at a fraction of the original cost. We highly suggest you become acquainted with auction financing. Learning how to distinguish valuable equipment from junk and securing it at bargain prices can save you significant capital down the road. 

How To Buy The Best Farming Equipment At Auction 

Agricultural auctions can be an excellent way of obtaining essential farming tools and supplies for cheap, but the chances of getting a steal of a deal are just as great as the chances of ending up with a dud. Diligence is even more important if you are buying at auction with financing approval. No one wants to repay a loan with interest on an item with no value. 

We have compiled a list of tips to help you navigate the ins and outs of buying at auction. Here is how you can get the most out of your auction financing:

Research the items at auction: By the time you set foot in an auction, you should already know which items you are going to bid on and the real value of these items. 

Research the quality of the products you are interested in. Have there been any recalls? Do many people complain about these products online? How much have similar items been sold at previous auctions? How much is the product new and is it even worth it to buy it used? 

Knowing the auctioned items inside out helps you minimize your spending and avoid potential busts. 

Be patient with your purchase: If there are no good deals at a given auction, do not hesitate to hold out for the next one. Having your farming operations slowed down for days and weeks can be difficult, but a rash purchase is rarely with it. 

Besides, there are many, many auctions in Alberta that sell farming equipment. You can find dozens of farm auctions, dealer auctions, and consignment auctions being hosted every month. One of them is bound to have exactly what you need at the perfect price point. 

Understand the ebb and flow of the market: Prices of farming equipment do not stay constant during the year. Used machinery, for example, is more expensive the first and fourth quarters of the year and cheaper during the second quarter. 

Research when the equipment you need is at its cheapest and buy it then. 

Prioritize items under warranty if possible: Slightly used farming equipment that has not yet outlived its warranty can be great buys. Though you can expect items under warranty to be more expensive, the peace of mind they bring can be often worth it. 

Do not buy under impulse: Newcomers to auction buying are often surprised by the rowdy atmosphere and sometimes allow their emotions to dictate their financial decisions. 

The reason you did your research in the first place is to avoid impulse buying. Stick to the plan and do not let your whims get the best of you. 

Replenishing Your Farming Assets At Auction 

Auctions are an exciting opportunity to procure farming equipment in good condition at wallet-friendly prices. With approved financing in hand, you can easily replace your old and worn out machinery without dipping into your capital. 

This feeling of empowerment is precisely why you should do your homework before entering an auction. Because you will have to pay back your auction loan, you should rein in your emotions and only spend it on proven equipment essential to your business. A poor purchase decision will set you back even further than where you started.  

Are you ready to get your auction financing approved? Choose First Capital Leasing, Alberta’s premier auction leasing and financing company. Call us at 403-255-5508 or fill out the online contact form to get the process started. 

FAQ

Q: What if I want to lease my farming equipment after having purchased it at auction?
A: First Capital Leasing offers sale-leaseback plans. You sell the farming equipment you own to us, and we lease it back to you at competitive rates. This frees up significant working capital which can be invested in expanding your business. 

Q: Are there auction 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.

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