This FoodProcessing.com article provides more insight in how auctions of Food Processing equipment can be used to buy or sell equipment, processing lines or entire plants.
It addresses the pro's and cons of buying used equipment, elaborates what types of auctions exist and lists some of the major players in this field, including Loeb Equipment, the M. Davis Group, Rabin Worldwide and Equipnet:
In an auction sale, "It's all as-is, there's no warranty or return policy, and we don't test the machinery out," says Charles Winternitz, president of the auction side of the business, Loeb Winternitz Industrial Auctioneers.
It's not bad, it's just a different business model. In exchange for getting what may be a bargain, buyers who use auctions should perform their own inspections before the auction, and know what they'll need to do to bring the equipment up to snuff. And in a recession, bargains have become an increasingly relevant means of budgetary survival.
Buyer and seller both can win in the used equipment market. Equipment in the food industry tends to retain its value better than that in other industries. Even a 10-year-old machine that is well maintained may still bring the seller up to 50 cents on the dollar if the processor conducted good preventive maintenance. And it can bring the buyer savings of 50 percent or more.