Auction Terms Glossary: Equipment Auction Terminology

Absolute Auction: An auction where items sell to the highest bidder regardless of price, with no minimum or reserve. Sellers commit to accepting whatever the market determines. As-Is Where-Is: Equipment is sold in its current condition and location. Buyers accept all faults, defects, and issues without warranty or guarantee. Inspection before bidding is strongly recommended. Bid: An offer to purchase at a stated price. Bids are typically binding once acknowledged by the auctioneer or recorded by the auction platform. Bid Increment: The minimum amount by which each successive bid must exceed the previous bid. Increments often increase at higher price levels. Buyer Premium: A percentage added to the hammer price, paid by the buyer to the auction company. This fee is in addition to the winning bid amount. Consignment: The arrangement where equipment owners place items with an auction company for sale. The auction company markets and sells the equipment in exchange for a commission. Hammer Price: The final bid amount accepted by the auctioneer, marked by the fall of the gavel. This is the base price before buyer premium and taxes are added. Lot: A single item or group of items sold as one unit. Each lot has a unique number for identification during bidding.

Reserve Price: A minimum price set by the seller below which the item will not be sold. Reserve prices are typically confidential and not disclosed to bidders. Reserve Met: Indication that bidding has reached or exceeded the seller's minimum acceptable price. Once reserve is met, the item will sell to the highest bidder. Reserve Not Met: Bidding has not reached the seller's minimum price. The item may not sell, or the seller may negotiate with the high bidder after the auction. Starting Bid: The minimum opening bid amount set by the auction company. Bidding begins at or above this amount. Opening Bid: The first bid placed on a lot, which must meet or exceed the starting bid requirement. Estimate: A price range provided by the auction company indicating expected selling price based on market analysis. Estimates are opinions, not guarantees. Fair Market Value: The price at which equipment would sell between a willing buyer and willing seller, both having reasonable knowledge of relevant facts.

Proxy Bid: A maximum bid entered in advance that allows the auction platform to automatically bid on your behalf up to your specified limit. Absentee Bid: A bid submitted before the auction by someone who cannot participate in real time. The auctioneer executes the bid on behalf of the absent bidder. Phone Bid: Bidding conducted by telephone, with an auction staff member relaying bids between the phone bidder and the auctioneer. Floor Bid: A bid placed by someone physically present at a live auction, as opposed to online or phone bidders. Bid Retraction: Withdrawing a bid after it has been placed. Most auctions prohibit retractions except for clear errors, and attempted retractions may result in penalties. Sniping: Placing a bid in the final seconds of an online auction, attempting to win without giving others time to respond. Soft close rules discourage this practice. Soft Close: An auction closing method where the deadline extends if bids are placed within a specified time window before the scheduled end. Outbid: When another bidder places a higher bid, the previous high bidder is outbid and must bid again to regain the lead.

Live Auction: A traditional auction conducted in person with an auctioneer calling bids. Bidders are physically present at the sale location. Simulcast Auction: A hybrid auction where live bidding is broadcast online, allowing remote participants to bid alongside those present in person. Timed Auction: An online auction with predetermined closing times. Bidders place bids through the auction platform during the bidding window. Online Auction: Any auction conducted over the internet, whether timed or simulcast. Onsite Auction: An auction held at the location where the equipment is situated, often the seller's facility or job site. Ringman: Auction staff positioned throughout the crowd to spot bids and assist the auctioneer during live sales. Clerk: Staff responsible for recording bids, identifying bidders, and maintaining the official auction record. Auctioneer: The licensed professional who conducts the sale, calls for bids, and controls the pace and flow of the auction.

Invoice: The document issued to winning bidders detailing purchase price, buyer premium, taxes, and total amount due. Settlement: The process of reconciling the sale and distributing proceeds. For buyers, settlement means completing payment. For sellers, settlement means receiving their portion of the sale proceeds. Payment Terms: The conditions governing how and when payment must be made, including accepted methods and deadlines. Deposit: A payment made before the auction to secure bidding privileges. Deposits may be refundable if the bidder does not win or applied to purchases. Title: The legal document establishing ownership of titled property such as vehicles or trailers. Title transfer occurs after payment is complete. Bill of Sale: A document recording the transfer of ownership from seller to buyer, including sale price and date. Lien: A legal claim against property, often from unpaid loans. Liens must be resolved before clear title can be transferred. Clear Title: Title without liens, claims, or encumbrances. Buyers should verify clear title before completing purchases.

Hours: The operating time recorded on an equipment hour meter, similar to mileage on vehicles. Hours indicate usage level and affect value. Condition Report: A document describing equipment condition, including noted defects, operational status, and general assessment. EROPS: Enclosed Rollover Protective Structure, a cab that protects the operator and includes climate control. ROPS: Rollover Protective Structure, a frame or cab designed to protect the operator if the equipment rolls over. FOPS: Falling Object Protective Structure, overhead protection against falling debris. Quick Coupler: A device allowing rapid attachment changes on excavators and loaders without leaving the cab. Undercarriage: The track, rollers, idlers, and related components on tracked equipment. Undercarriage condition significantly affects value. Auxiliary Hydraulics: Additional hydraulic circuits for operating attachments beyond basic machine functions.

Terms and Conditions: The legally binding rules governing the auction, including bidder obligations, payment requirements, and dispute resolution. Consignment Agreement: The contract between seller and auction company outlining commission rates, terms, and responsibilities. Bidder Agreement: The contract bidders accept when registering, acknowledging auction terms and agreeing to complete purchases. Withdrawal: Removing an item from the auction before it sells. Withdrawal terms and any associated fees are specified in the consignment agreement. No Sale: When an item fails to meet its reserve price or receive any bids and does not sell. Warranty Disclaimer: Statement that equipment is sold without warranty and the auction company makes no representations about condition. Indemnification: Agreement where one party agrees to protect another from certain claims or losses, common in auction terms. Dispute Resolution: The process specified in auction terms for resolving disagreements, which may include mediation, arbitration, or litigation.