IronPlanet online auction sells US$13.6 million of equipment

An online auction featuring mine and quarry equipment hosted by IronPlanet on 6 December generated auction sales of over US$ 13.6 million. The online auction, which featured nearly 600 items, attracted buyers from around the world. There was significant level of interest from Australia and New Zealand.

“It was one of IronPlanet’s most successful auctions to date,” says Graeme McPherson, managing director for IronPlanet Australia, “…and a key indicator of the global demand for equipment, particularly of equipment for the mining environment.”

The top seller of the day was a 2002 Caterpillar D10R Track Dozer, which sold for US$354,000. Other equipment that sold well the online auction included 2002 Caterpillar D10R Track Dozer which sold for US$218,000 and a 1997 Caterpillar 657E Motor Scraper for which sold for US$206,000.
Australian and New Zealand buyers made the most of the online auction, trading on the current strength of the Australian currency. Successful bidders from the region purchased a number of large items, including a 2005 Caterpillar 953C Track Loader for US$66,000 and a 2005 Vermeer V120 Trencher at US$48,000. Other items including equipment attachments and spare parts were also bought by the Australasian bidders.

IronPlanet will be holding another two US-based auctions this year. The auctions are scheduled for 13 and 20 December.

IronPlanet Australia is planning their first locally-based auction on 14 February 2008, and is currently in the process of sourcing stock for the auction.

“We are expecting to have some ex-rental equipment in the February auction, as equipment rental companies begin to realign their fleets for the New Year. Ex-rental stock is sought after by buyers as it is generally been well-maintained and can have relatively low hours,” says McPherson.

“Contracting companies with equipment that is no longer providing a suitable return on investment will also find that selling online can be an effective way of regaining some value on depreciated equipment. Reconstruction and insolvency practitioners will also find it a valuable tool for managing the disposal of assets.”

Selling online provides an excellent opportunity for companies looking for alternate ways to sell used equipment. With traditional auctions, sellers are required to transport the equipment to the auction yard, and given the geography of a country like Australia the cost can be very high, particularly for large items. And if the item is then left unsold, more costs are incurred as the item has to be transported back to the seller’s premises. With online auctions, the equipment is sold from the seller’s yard, which means no additional costs are incurred by seller.

“Online auctions can provide a hassle-free, profitable sales channel,” explains McPherson. “They are not tied to a specific location or region and can reach a global audience of interested buyers. As a broader spectrum of buyers competes to “win” items, owners are able to realise better prices for their used equipment.”