Machine Tool Auction FAQ
One way to maintain your business’s financial equilibrium is by making the decision to liquidate your company’s assets through machine tool auctions. Reclaiming value for previously used equipment can be leveraged to facilitate growth and/or make room for new and relevant machinery. Industrial auctions are one such way to liquidate old machinery, but also purchasing new equipment that allow for more effective every-day service operations.
While the process offers benefits for both sellers and buyers alike, there are still a few questions surrounding the inner workings of machine tool auctions in general. Today we answer three of those questions:
Are auctions a good source of functional equipment?
A few misconceptions surround the idea of machine tool auctions – most of which are largely incorrect. In actuality, industrial auctions are a valuable source for purchasing used equipment. For small businesses that are not looking to pay the price of purchasing brand new, but are in need of highly functional equipment – equipment auctions are the solution to their needs.
What’s the difference between absolute auctions and reserve auctions?
In reserve auctions, a minimum price must be met between the auctioneer and the seller in order to complete the sale. This gives the seller the security of the sale in which they reclaim the exact value they had initially hope to have achieved. Absolute auctions do not hold this covenant between seller and auctioneer. Rather, the item is sold to the highest bidder without any minimum amount to be met in order to close the sale.
What exactly is a buyer’s premium?
The term buyer’s premium refers to the type of payment the winning bidder must pay to the relevant auctioneer. It can refer to the advertised percentage of the highest bid, or can also simply be a flat service fee for the total contract price of the item sold during the auction process.
Infinity Asset Solutions Answers Your Questions
From industrial auctions to equipment appraisals, Infinity Asset Solutions is fully capable of answering any questions you may have regarding the auction process. With years of industry experience, you can rest assured knowing we are able to accurately appraise your equipment in accordance with market expectations. We understand the inner workings of the auction process regardless of industry, so you know you are in good hands.
