Buyer's guide: What to check before bidding on industrial machinery at auction

What types of industrial machinery can you buy at auction?

Before we get into the industrial equipment due diligence checks, it’s worth taking a quick look at the types of machinery you can often buy in our auctions. That includes:

• Engineering tools - Lathes and milling machines, drilling machines and bench drills, grinders and saws, workshop presses and tooling equipment.

• Metalworking equipment - Welders and welding stations, rolling machines, press brakes and sheet metal guillotines.

• Woodworking machinery - Table saws and panel saws, wood routers and CNC wood routers, band saws and sanding machines.

• CNC machinery - CNC milling machines, lathes and routers, multi-axis machining centres and automated cutting systems.

• Construction plant and machinery - Excavators and mini diggers, dumpers and dump trucks, forklifts and telehandlers, compressors and generators, concrete mixers and breakers.

Basically, anything you want, you can find. But before you place a bid, you need to know exactly what it is you are buying. 

Our industrial equipment auction due diligence guide

So, you’ve found what looks like an excellent bit of machinery at the right price, and your brain is starting to spin with the potential opportunities. But before you get carried away, here’s what you need to know.

The machine’s particulars 

Before you set foot on the auction house floor, or prepare to make a bid online, you need to know everything you possibly can about the machinery, its condition, how much it has been used and whether it has had any issues.  

A reputable industrial machinery auction house will provide a detailed online catalogue featuring thorough descriptions of each lot. That will typically include: 

• High-quality images

• The make and model

• Its age or year of manufacture

• Serial or identification numbers

• Technical specifications and capacity

• Hours of use or operating hours

• The machine's overall condition

• Details of any known faults, defects or missing parts

• Service and maintenance history (if available)

• Included accessories, tooling or attachments

• Dimensions and weight

• Power requirements and operating specifications

• The machine's current location

• Any available manuals, documentation, or certification

If there’s anything you want to know that isn’t included in the description, simply contact the auctioneer. Usually, there will be a named point of contact on the online listing.

The fair market value of new and used models

Using the information in the listing, you can then search online to establish a fair market value for the machine. You should look for several examples as values can vary significantly depending on age, condition, service history and the various attachments. That will give you an informed benchmark for your bids. It's worth comparing prices from used machinery dealers as well as auction results.

When determining your maximum bid, remember to factor in the additional costs, such as buyer's premiums, VAT, transportation and any repairs or maintenance the machine may need. That will help to ensure you don’t overpay in the heat of the moment. 

The auction’s terms and conditions

Pay close attention to the auction’s terms and conditions to understand the various fees you’ll be responsible for if you do make a successful bid. There will also be rules around when you must pay for and collect the equipment.  

If you have the highest bid when the gavel falls, you are legally obliged to complete the purchase. You cannot simply pull out if you discover that the fees are higher than you initially thought. The terms to be aware of include:

• Buyer’s premium and the rate that applies.

• Payment deadlines, penalties for late payment and accepted payment methods.

• Collection and removal deadlines.

• Storage charges if you do not collect the goods on time.

• The deposit due if you place the winning bid.

• The auctioneer’s cancellation and refund policy.

• The consequences if you do not complete the purchase.

• The auctioneer's description disclaimer and limitations of liability.

• Any export restrictions or documentation requirements for overseas buyers.

The machine’s physical condition

Physically inspecting the machinery is a crucial part of your industrial equipment auction due diligence. Most auction houses will give you the opportunity to view a lot before the sale. That will allow you to assess the machine's condition first-hand rather than relying on the catalogue description and photographs. 

During the inspection, look for signs of excessive wear, corrosion, damage, leaks, missing components or poor repairs. You should also check any moving parts where possible and compare what you see with the information in the listing, as this can help you identify any issues that may not be immediately obvious. 

If you're unfamiliar with the equipment, it’s worth taking an engineer or specialist along with you to help identify any potential issues that you might miss. 

Your collection and delivery options 

Before buying industrial machinery at auction, make sure you understand the collection requirements and have a workable plan to transport the machinery from the auction house to your site.

You have several options here. You could arrange to pick up the equipment yourself. In that case, you may require a dismantling service or a forklift or crane to load the equipment. Alternatively, you could use a third-party courier or transport firm, and some auctioneers can arrange delivery for you, albeit at an extra cost.  

Make sure you factor in the full cost of collection, transport, loading and unloading, and installation before you place a bid. The price of the machine will quickly add up if you need long-distance haulage, specialist lifting equipment or abnormal or oversize load permits. 

Are you considering buying industrial machinery at auction?

At BTG Eddisons Asset Sales, we have sold millions of pounds of industrial machinery at auction to buyers across the UK and further afield. Just browse our industrial assets for sale and register to place your bid. This industrial machinery auction guide should prepare you to bid with confidence, but if there’s anything you’re unsure of, please do not hesitate to contact our team.