Is selling at auction better?

For the last few years, it seem many old tractors sell for more than expected at auctions versus buying directly from a seller. I assumed auction prices would normally be lower b/c more limited testing of tractor or getting info/trust level from seller.

Auction. As a seller, it avoids dealing with bad prospects (time wasters), making time to show tractor to potential buyers, future interactions with buyer/reputation injury if buyer unhappy with purchase. [However, I do like chatting for hours when buying/selling.]

Plus, auctions let buyers use credit cards to pay more than they would be willing to pay in cash (even with buyer fees/cc fees). I think this is the driving force for higher than expected auction prices around me in central PA.

Take this AC Model C nfe. It seems to be in nice running condition. Not a trailer queen.

https://pennsylvania.hibid.com/lot/79474617/allis-chalmers-c-tractor-with-wheel-weights/?q=&zip=17022&miles=50&ref=lot-list

Most would sell for $650-800 around here, maybe less just before Christmas when $ gets tighter. With 4hrs to go, it is $500.

What do you think it will sell at?





Edited by KMAG - 23 Dec 2020 at 9:31am

Farm equipment auctions have moved/are moving into the global ONLINE TECH platform. So any potential seller/buyer with an Internet connection, has immediate access to items of interest. Internet auction prices probably offer best broad range average pricing because of its huge audience potential.
In the past, smaller local auctions usually only offered a tiny audience compared to global audience. So it was not uncommon to watch a local auction item sometimes sell extremely short or extremely high. But now many local auctions have Internet bids on a laptop right next to the yodeling Auctioneer.

At an auction you never know if the bidders are real or your bidding against the crooks (auctioneers) helper or maybe the squirrels running on the powerlines, sometimes even the cars going by out on the interstate.  Private sales are more honest as you can get a feel for the owner as to if you need your farmyard boots or not. Plus you have a better chance to verify condition and to look for unknow problems.  With the high commissions the crooks are now charging a private seller will benefit more no matter what price it sells for.   Auctions are like New Jersey to me: there's nothing there that I need bad enough to go there for. 

When something is for sale at auction it all depends on who wants it. If two people want the same thing and have too much money it could bring more than a private sale.

$700.00 is about right for the Allis C.
That about what I gave for 3 that were running 2 at auction and one private sell.

One thing that does happen at sales is other auction company buy and sell again.
This has been happening for along time.



Edited by Richardmo - 23 Dec 2020 at 8:31pm

On line auctions are getting popular,pretty nice to be able to sit home and bid,not stand in the cold,rain etc.Also don't have to travel a good ways to to watch it go for more than I wanted to pay.Prices do seem as good or better than live only auctions.Also some are a combination live and on line.If I was going to have an auction it'd be on line a lot less set up work plus don't get people coming in stealing things and tearing up stuff

The auctionneer is for the seller not the buyer. The idea is to get the most out of the piece there selling.

Yes, in simple terms.....If 100 people are attending an auction that culminates down to 2 bidders for any/each item, then 98% of the people become/are spectators. Change the attendance to 1000, and then 99.8% are spectators.

Edited by AC7060IL - 24 Dec 2020 at 12:37pm

Some people should get their  Auctioneer License and see how long they stay stay in Business and make money doing it on terms that they think other Auctioneers should .

I’ve seen stuff sell stupid high at sales and stupid cheap. I watched a 8050 or 70 MFWD sell for $6500 I was last guy out and at that snapshot that’s all the money I had to spare. I’ve also watched nurse tanks that the pump didn’t run sell for more that a new one 60 miles down the road. Within the last two weeks I bid on a auger for $5800 4 days later I bought a same as new one for $4500 new is $11,800.

The main thing, in the end, is to leave one main goal to which all employees of the company will adhere. Or make several smaller ones, but these goals must be connected to each other.

Edited by Ryanlark - 05 Dec 2022 at 2:55am