Auction Sales

In the event that businesses are to re-claim resources, there are a number of ways they can do this. Auction and liquidation sales are the most typical ways of a business to recover its assets. In most cases, you will find auction and liquidation sales being utilized by stores; in order to get as much money as possible when they’re getting rid of the surplus merchandise.

Understanding the difference between Liquidation and auction sales, will enable you to make the right decisions; in case a company faces the need of selling its equipment or property. In this article we’re going to look at the differences between liquidation sales and auction sales.

Auction sales

For auctions they refer to the opposite of liquidation sales, as they are fast from the start to finish. The following constitutes to its advantages

1. The internet is in a position of attracting bidders from all over the world.
2. Auction sales are in most cases due to an organization wanting to sell off its excess items
3. Prospective buyers can drive price ranges up
4. Their sales are fast that is from the beginning till the end. Its deal involves the setting of equipment, auctioning process and clean up. The process won’t take more than 90 days

For auction sales, products may at items not go for its original value. This is because; competition among bidders determines the value of an item. There are instances, where the competition is not enough to drive up the price of an item to the desired amount.

Liquidation sales

This is the process of marketing a company’s assets in an organized way for an extended period of time, so as to attain a greater value near to its retail price. Liquidation sales is similar to store closing sales; because, a special corporation can come to sell of the rest on the extra inventory. They are lengthy sales processes whereby products can be sold off for weeks, months and even years.

For industrial liquidation, sales compose of the retailers going through offers and discussing the selling prices. The following are the main benefits of liquidation sales.

1. Discussion between the seller and the buyer determines the price of an item
2. Extended selling time, which allows sellers to have enough time in finding the best buyer for the product. This means the sellers sell at high prices; however, there are instances where they settle for less in order to sale off the products.
3. The main advantage is the time frame, which allows more sales to be carried out thus more time in getting the best buyer.
4. Works more effectively on unique items as there are few buyers for the products, with liquidation sales sellers have time of locating buyers.

Liquidation sales; however, has a disadvantage for the products ought to be stored on the site until its sale is made. When most items are sold off at a liquidation sale, the equipment and workforce are in most cases sold off in auctions.

An auction sale is an effective way selling a company’s resources when its products are sold off. With liquidation sales and auction sales you can be able to effectively restore your company’s assets.

Purchasing a second hand vehicle at an auto auction is an excellent method of saving money on vehicles. However, it’s essential that to know how much you are willing to spend before the day of the sale. This is as vital, as you don’t want to find yourself not being in a position of paying for the taxes and insurance among other expenses accompanying the purchase of a second hand vehicle. When purchasing a vehicle from a bidding site, consider the following aspects in your budget.

1. Insurance

The insurance cost of your vehicle varies according to the make and model of your vehicle. In the event that you are aware of type of car or truck you want to purchase, call your insurance agent to get an estimate of the insurance cost.  Given that you won’t require a lender in financing your car or truck, you’ll need to pay for the vehicle in full before it leaves the lot.

You are not obliged to get a collision or comprehensive insurance. Although if you are not able to pay up for repairs in case you have an accident, having an extra insurance would be ideal but it’s not mandatory. Having liability insurance is a requirement in all states; therefore, you’ll need to get a liability policy.

2. Taxes, plates and additional fees

When you purchase a used vehicle, it’s mandatory to visit the Department of Motor Vehicles office in order to pay your states sales tax. Before going to an auto auction sales, contact the DMV office to know you sales tax rate. The price of your vehicle, determines the amount of sales tax you’ll be paying. After knowing the budget of your vehicle, you are in a position of estimating your sales tax after knowing your rate.

Once you’ve purchase your vehicle from an auction sales, ensure that you have license plates and tags. If the vehicle is replacing your current vehicle, you request to transfer the license plate and pay up the fee. Paying a buyer’s fee is necessary after purchasing a vehicle at an auto auction, call the auto auction contact number to know the fee. The fee is dependent on the selling in auction sales.

In the event that you’re planning to attend auction sales, there’s a great deal of preparation to be made. If you’re a fast-acting buyer, you’ll be ready to make commitments; before attending an auction, there are things you can do as a buyer. We are going to guide you on the dos and don’ts, when it comes to auction sales in order to understand the process.

What does it costs to register for auction sales?

This question is mostly asked by first time bidders, there is a registration form that you’ll fill, leaving cash deposit so as to get your bidder number.  With the cash deposit, it ensures that the bidders are sincere with their biddings. This therefore creates a comfortable environment for the buyers, in the event that you’re unsuccessful in your bidding, you will have a refund of your deposit.

How to prepare for auction sales as a bidder?

Buyers make a very big mistake of attending auction sales, without doing a thorough research on items that are selling. As a buyer, know the price of new and used product so that you can compare it with the selling price it’s being sold at. Examine and inspect the condition of the equipment during the auction preview; hence, you can know how much you can bid it for.

What are the terms of sale?

You will find this information on the auction registration form and auction company websites. It comprises of a bidder’s responsibility in purchasing products, through acceptable form of payments and the time in removing your auction sales purchases.

Will I pay sales tax?

Your total auction sale collection is made by the auction company, in case you are planning to make purchases through resale; ensure that you complete the tax sales forms.

What is the buyer’s premium?

The buyer’s premium is a commission structure for most auction companies. The amount is found in terms of sale. It’s important to understand the buyer’s premium percentage and the figure that gets into your bidding.

In case you are new to auction sales, it’s vital that you’re comfortable with the process of bidding.  Pay attention to the auctioneer, understanding the increments in bidding. This will help you to keep pace on sales. Auction sales are an excellent way of saving money, staying in a fast pace buying environment and having a lot of fun.

At times, the most effective method of acquiring certain products is purchasing them from somebody else. This may be through direct trading or through a third party. In the direct party method, both the seller and the buyer agree to meet up and transact. The case is however not the same in the third party where an anonymous person is included in the process. Auction sales are perfect examples of third parties, where goods are transacted through third parties known as auction houses. So, if you have never attended auction sales before, consider attending one to observe how the operations go. However, consider the following factors:

• Type

There are multiple types of auctions sales which vary depending on the industry, or country. The procedures followed on the different types of actions are also not the same. For instance, some auctions are loud while others are carried out secretly where the participants bid by writing.

• Items

You can select the type of auction depending on the type of products being purchahsed. Some auctions purchase a single product while others sell mixed products. So, depending on the type of product you want, confirm if your auction offers the exact product that you want to intend to bid on.

• Reputation

Just like in any other type of business, you must carry out thorough research on the type auction center you intend to work with. For instance, does the site have an address? Does it have any customer reviews? How long has it been existence? Ensure that you work with the well known companies with a good reputation. That way, you will be sure that your hard earned money won’t go into waste.

There are other factors that you must consider when selecting an auction sales center, but these ones are the main ones. Observe them and you will definitely have a wonderful bidding time.