Buying Equipment at Auction

Buying equipment for your business can be pricey. There's plenty that needs to bought, all essential to the smooth running of the kitchen. Of course, the perfect scenario is to invest in a whole range of brand new, sparkly equipment however this isn't always an option. Auctions specialising in commercial refrigeration can be a great option for businesses working with a limited budget that need to make sure that their pounds go further.

Buying Restaurant Equipment at Auction

When buying equipment from an auction there are certain things you will need to take into consideration.

1. Why is the piece of equipment being put through auction?

Usually, this will be due to one of three reasons.

• The restaurant has failed resulting in all equipment being sold.
• The restaurant is replacing older models with newer versions. If the pieces are too old to trade in they will be sent to auction.
• The piece of equipment may have become redundant in the restaurant or replacement parts may be too expensive in case of breakdown.

2. Will I be able to find all equipment needed for my restaurant at an auction?

Generally, most items of equipment will go through a commercial auction at some point however, the availability of the unit you're looking for will obviously be dependent on what people are wanting to sell. Rather than a continuous supply and demand situation as with new equipment, it's more a case of what's available at the time.

3. Can anyone go to commercial auctions?

As a rule there are usually two main groups of people that go to a commercial auction. These tend to be either used equipment dealers or owners of independent restaurants. It is advisable to research what items you are looking for so you have some idea of what you need and what potential flaws you may encounter with the equipment.

4. Where can I find a commercial auction?

Auctions will generally be held either in the closed restaurant or at an auction site. The easiest way to find your nearest auction is to search online. You may also be able to find equipment you are looking for on online auctions on sites such as eBay.

Tips to Aid You in Successful Buying

• Check how long the previous owners were in business. It is preferable to buy an item that has come from a restaurant, shop or other catering establishments with a relatively short period in business. This means that the equipment should hopefully be newer and have fewer problems than older models.
• Remember all lots are sold as seen. Buying from an auction means you have no warranty so if you are unsure, you should pass on the item. If you are a successful bidder on an item you will be liable for payment even if you find that it isn’t in the condition you initially thought it was. If possible, it would be handy to know if the unit was serviced by a qualified engineer regularly as this could have an impact on the longevity of the equipment. Also, check the refrigeration system where possible to ensure that the condenser has been regularly cleaned and maintained. A well-looked after motor should imply that less strain has been put on it during its lifetime so far.
• You will need to arrange transport. Auction houses will not include delivery of the item to your business address so this will need to be arranged by you.
• Check safety codes on all pieces of equipment. As these items are used and probably an older model, you should always check the safety codes to make sure they are still valid before you start bidding. With F-Gas Regulations stating that HFC's should be phased out of new equipment by the beginning of 2020, it's always worthwhile to check the gas that the unit uses.
• Check the voltage required to run the equipment. Before bidding you should always check that you can meet the voltage requirements needed, in order to run the item.
• Is the auction house you are purchasing from reputable? Auction houses tend to take a ‘no responsibility’ attitude to the lots for auction so a general rule would be that the longer the auction house has been running the more reputable it will be.

Auction Alternatives?

Buying commercial refrigeration at auction isn't for everyone. Luckily, there are alternatives. Graded commercial refrigeration can be a great way to get your hands on current models but at a discounted price. Read more about the advantages of graded equipment on our Graded Commercial Refrigeration page.

Buying at auction should be approached warily if you are not a seasoned regular. You need to be knowledgeable and be aware of the ins and outs of the technical side of things. You may initially pay a lower price for an item than when buying new but any inexperience or failure to adequately assess the condition of equipment could ultimately lead to a higher payout thanks to repair and call-out charges.