Big Tractor Auctions

[Conagher]

Anyone attend those big monthly tractor auctions? I'm in the market for a tractor and attended one this past weekend near Tyler, TX (Noonday). Couple things I notice:

1) There were several ring men, but in particular there were two specific ring men that would trade-off with each other throughout the auction (large auction - tractors alone took almost 5 hrs). These guys would yell out 3-4 consecutive yelps, each time the auctioneer raising the bid; yet I am absolutely convinced there was no-one bidding. This was not a one-time event but happened on most of the tractors that drove through, and I watched 150+ tractors roll through. The ring man would do this while looking at one area of the bidders, or looking at the ground, or looking at the tractor, and 11 times with their back turned towards the bidders. I don't believe they could have memorized reserves for each of these tractors, nor did they have a list paper, electronic or otherwise they were consulting. Any ideas what was going on?

2) The auction company had a sign right under the auctioneer stating something to the effect that this is a reserve auction and the consigner is responsible for protecting the price of their consignment. There was never a reserve stated. So does this mean the consigner was also bidding on the equipment?

3) My registered auction number was something like 2548. I would guess over 95% of the "winning bidders" had much lower number: 28, 62, 263, 350, etc. that were buying multiple tractors. And typically they did not show a bidder card, the auctioneer and/or ring man new their numbers. Where these dealers buying, and/or protecting the price of their consignments?

I decided not to bid on anything since I obviously didn't understand what was going on. Any insight would be appreciated.

Thanks and have a nice day.

 

[1982vett]

Used equipment sales lot disquised as an auction. Several of them around the state. They will most likely have another auction at the same lot in about 2-4 weeks. You can go in anytime and buy the tractor as long as you pay the "reserve" bid.

 

[bigbull338]

noonday has bids on all the tractors an equipment.alot of the no sale tractors are caught back using buyers #.so that people dont know how meny tractors are going through the ring without selling.because if people knew that then they wouldnt bid on any of the tractors.if you want a tractor from noonday do not be afraid to bid on it.who knows you may get it.

 

[cowsrus]

We have these here in Oklahoma to, i've been to several and noticed the same things you did (bids taken, but no-one bidding). The best i can figure is that the tractors have a reserve on them and they blind bid them till they get that price. If you want to bid on one, just be sure you know what it's worth and how much you want to pay.Don't get caught up in the bidding process because your bidding against yourself most of the time. I would say that most of the stuff that comes through either goes back on the lot or to the next auction down the road. It seems that it would be illegal to do this, but i guess it isn't or they wouldn't all still be in business.

 

[Subsoil]

The ones I've been around, if you consign a tractor, you get to put a minimum on it. The monthly auction will run the tractor through up to thee months. The third sale is an absolute auction however and if the tractor doesn't bring the minimum you set, but you're still not happy with the price, you'd be required to buy it back yourself and would be responsible for the commission on the final sales price.

Another thing going on is the auction company may be buying some of the tractors for resale at other auctions or future sales. Kind of like the salebarn owner buying cattle.

As far as the legality - why would it be illegal. Unless some one is holding a gun to your head making you bid (watch the end of the movie "Taken") no one is forcing you to pay more than you want. The auctions job is to find the level between the minimum the seller will take and the most the buyer will pay.