Auctions are where equipment's best prices live - and where financing's worst timing problem lives, because winning bids typically demand payment in 48-72 hours. The entire game is sequencing: money arranged BEFORE the catalog opens, so the auction's clock becomes your advantage over less-prepared bidders instead of your crisis.
The pre-approved buyer's playbook
- Get pre-approved for a ceiling amount ($100K, $250K) - not a specific machine. This is standard; lenders issue auction-ready approvals constantly.
- Set your real max bid at 88-92% of your approval - buyer's premium (typically 8-12%) and taxes eat the rest.
- Use the inspection window or condition reports - IronPlanet's guaranteed inspections and RB's detailed reports exist precisely because remote bidders need them.
- Verify the lender's payoff logistics: same-week wire capability and title/serial verification speed are the whole ballgame.
- Have a walk-away discipline: auctions monetize excitement. Your CPM math doesn't care that bidding felt like winning.
What auction fees actually cost you
Buyers who forget the premium and tax stack routinely blow their real budget by 10-20% - which is exactly why your max bid should be set at 88-92% of your approval ceiling, not 100% of it.
| Cost line | Typical range | When it hits |
|---|---|---|
| Buyer's premium | 8% - 12% of hammer price | Added at invoice, always |
| Sales tax / use tax | 0% - 8.5% by state | Added at invoice, varies by state |
| Refundable bidder deposit | $500 - $5,000 or 10% | Before bidding, returned or applied |
| Transport / hauling | $3 - $6 per loaded mile | After payment, separate from financing |
Ritchie Bros vs. IronPlanet vs. local auctions: financing differences
Ritchie Bros unreserved live and online auctions move fast and expect wired funds within days - pre-approval isn't optional if you're bidding seriously. IronPlanet's IronClad inspection reports give lenders enough condition detail to finance sight-unseen purchases with less friction, which is why remote buyers gravitate there. Local and regional auction houses vary widely: some accept the same pre-approval letters as the majors, others want a certified check or same-day ACH, so confirm payment logistics with both your lender and the auction house before bidding - not after you've won.
The 72-hour trap
Winning a bid you can't pay inside the deadline forfeits deposits and can get you barred from major auction houses. Never bid on 'financing I can probably get' - only on financing you already have in writing.
60-Second Funding Check
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What do you need funding for?
Financeable vs. risky lots
- Financeable: standard makes (Cat, Deere, Bobcat, Case), documented hours, clear title, under 10,000 hours - most lenders price these routinely
- Harder to finance: salvage or dismantled-title lots, machines with no serviceable serial plate, and anything sold explicitly 'as-is, parts only'
- Ask before bidding: whether the lender needs a third-party inspection on high-hour lots - arranging one after you've already won costs you days you don't have
Auction-speed is a Dealerun feature
Pre-approvals sized for bidding, wires that hit auction deadlines, lenders fluent in RB and IronPlanet paperwork. Tell us the sale date - we work backwards from it.
Pre-approve before the next sale
Bid like a cash buyer at the next Ritchie Bros close.
FAQ
Can financing really close fast enough for auction deadlines?+
With pre-approval, yes - the underwriting happened before you bid; post-auction is just verification (serial, lien, invoice) and wiring, which fits inside 48-72 hours. Without pre-approval, it's a coin flip you shouldn't take.
Do lenders finance auction purchases sight-unseen?+
Many do when backed by condition reports or guaranteed inspections (IronPlanet's IronClad, for example). Expect more scrutiny - or a required third-party inspection - on older, high-hour iron bought remotely.
Does the buyer's premium get included in the financed amount?+
Usually, yes - lenders can finance the hammer price plus premium and tax as one total, so long as it's within your approval ceiling. Confirm this before bidding, since it changes your real maximum bid by several percentage points.
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