Mining Auctions – Disposing of Un-needed Equipments

Like the heavy equipment auctions, mining auctions is both beneficial to sellers and to the buyers. For the buyers, the main attraction to mining auctions is the reduced costs of the equipments being auctioned.

For the sellers, the advantage they have is the fast disposal of their goods (equipments) right after use. (Some projects could be a one or two-deals, with the next one not in the horizon as yet.)

As a businessman who does want his money stuck on equipments on unproductive equipments, the best solution is to sell them at auctions. The investments on the machines are not liquid but the businessman might have a use of the cash.   

Equipments used in mining (or in most other industries that used heavy machineries) that are kept in inventory when there is no foreseeable project in the offing is keeping capital in forms that cannot be used. When projects come in, it is not really hard to buy (through an auction) the types of machineries to be used.

Equipments

Like the other machineries that are classified as belong to the heavy industries. Mining equipments are also expensive when bought as new models from fist-hand dealers and sellers. Like the good businessmen that they are, discounts can be found at auctions.

The vendors and seller also benefit because these are the deals that are carried out in cash and unconditional bases. Buyers on the other hand are able to stretch out their budgets to the utmost. One happy consequence is getting what they wanted without the depreciation costs.

Prices

The things to consider in an auction for mining machineries are the age and the condition of your merchandise. These factors will definitely affect the pricing of the equipment.

If the equipment’s present condition is still good, even comparable to the new models, it will negate the depreciation brought on the actual age factor of the machine. Needless to say, t he prices is still to be determined by how much the bidders think of the machine’s actual cost.

Here are some issues with regards to the equipment’s final bid.

Late models

It is only natural that the latest models are always on demand. With mining equipments, model changes take years in the making. These are heavy duty machines and they are not that easy to improve on unless there is a real innovative feature to push.

With regards to the features, most of these are actually dependent on the needs of the industry which are governed loosely on the current scientific discoveries and new technologies (say, a new way to extract oil) or some minerals.

Age

If these characteristics (features and age) are on older models, they may appeal to one buyer (or suits his mining needs) and attractive to the other buyers as well.

Standard models, as a rule, are easier to sell than specialized pieces of equipments. In mining for instance, the specialized equipments need to be offered to the biggest audience as much as possible.  The features and the attachments can have a significant effect on the equipments selling price.

Mining auctions can be a barometer to prevailing price conditions.