With many business owners and individuals looking at ways to save, purchasing quality second-hand goods rather than new can be a smart decision. Used goods can be found through dealers and also at truck, car and machinery auctions. There are organisations such as rental car companies, fleet operators and government bodies that have guidelines which require them to change over stock at certain times. Even when the vehicles or equipment are still in very good working order.
These events are conducted both online and at the premises of auction houses such as Pickles, Grays and others. The online service and ability to bid online for live events, provides access and ample opportunity for many buyers to participate and potentially secure high quality items at affordable prices. Both commercial entities and private individuals can participate in these events.
For buyers planning to purchase this way and requiring funding, there are a number of aspects of the process to consider. Action is advisable prior to the date. Competition for the best lots can be intense and bidders typically like to know how much credit they would be approved so they can set their own limit. Some form of payment may be required ‘on the fall of the hammer’ and this may need to worked out.
Confirmation of approved funding prior to the start, can provide bidders with the confidence and reassurance to proceed. Buyers requiring finance to purchase at truck, car and machinery auctions can apply for loans through Jade Finance prior to the sale commencing. Credit can be approved based on the estimated amount that bidders expect or are prepared to pay for the goods they have they’re eye on.
Financing Products for Vehicle and Machinery Auctions Purchases
Prior to the date, buyers can speak with us to get their funding application underway. The credit products suitable for purchases made via a bidding process are the same as for purchases through a dealer or private seller. Goods purchased via this process will primarily be used and the applicable interest rate and lender assessment guidelines used to prepare offers. Sometimes new goods do come up for auction.
For both private and commercial buyers of used goods, a key issue in the choice of credit product will be the condition of the goods. Lenders include a review of the condition of assets when assessing them as acceptable credit security.
Where the vehicles are acceptable collateral, private car buyers can consider a Secured Car Loan. If the lender considers the vehicle not acceptable security, an Unsecured Personal Loan may be a workable option. While the interest rates are above those for secured products, with our vast lending panel, we can source highly competitive rates for unsecured credit.
Commercial buyers, those with an ABN purchasing assets to be used in their business, the equipment finance options include Chattel Mortgage, Leasing, Rent-to-Own and Commercial Hire Purchase. Used assets can be funded with these secured products but subject to lender guidelines, additional security may be required.
Where non-working equipment is being purchased to restore or to salvage parts, an Unsecured Business Loan may be an affordable solution.
Preparation to Bid Confidently at Auction
Preparation can greatly enhance the experience and may improve the prospects of being the successful bidder. Sale houses will post details of lots in upcoming auctions online and will often set inspection times for bidders to view the lots on site. Buyers can review the listings to decide what to bid on and note the specifics to advise our brokers for funding quotes.
While reviewing the catalogue, using our finance calculators to generate rough credit estimates can be helpful.
When setting personal limits and the credit amount, be aware of any extra charges that be involved in buying through that particular company. This is known as a buyer’s premium and is a percentage of the winning bid that is charged to the successful bidder to cover their costs.
Registration to bid will be required. This can be done online and any other terms and conditions of participation noted. Especially note how much deposit is needed to confirm the sale. Settlement of the balance can be arranged by your broker and our lender with the house.
Apply for a Loan to Purchase at Auctions
Applications for auction purchase funding can be submitted and approved in advance of the date. Pre-approved funding has a validity period after which it expires without obligation. If a last minute decision has been made to participate, we can get fast approvals – in 24 hours.
We can process applications and arrange approvals based on your bidding limit or estimate. On the fall of the hammer, successful bidders can advise our broker of the exact amount they require for the funding. We will work with our lender to make any necessary adjustments to the pre-approved offer at that point.
An auction can be a great way to acquire quality second-hand goods that may represent a significant saving on the cost of their new equivalent. To ensure a smooth auction experience and be well-prepared, speak with us in the lead-up to arrange your credit.
To be prepared to buy at truck, car and machinery auctions, contact Jade Finance on 1300 000 008.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.
