Online auctions offer great deals on even hard to find heavy equipment to do work or provide parts to keep other equipment working. The used market for construction equipment, farm machinery and other specialty vehicles is estimated to be worth $60 to $70 BILLION in the US* alone.
Any time you find that much money changing hands, someone will try to get their hands on it through dishonest and deceptive acts. But you can protect yourself, you lovers of yellow iron, by remembering a few tips to spot scams and avoid falling for them.
Warning Signs
The Price Is Too Good to Be Real
If a deal is too good to be true, it probably isn’t true. If you come across a tractor with the asking price of a riding lawnmower, just walk away.
The Seller is Asking for Unusual Payment Methods
If someone wants to be paid in gift cards, offshore wire transfers, or some other unconventional or obscure method of payment, don’t give them your money. Stick to established and well-defined methods of payment.
Information is Vague or Absent
When you come across a listing where certain angles are missing in the photographs, or the photos are blurry, stay away. If details like mileage, operating hours, and overall condition appear conspicuously absent from the listing, run away.
Records, Documentation or Paperwork is Missing
When buying anything as big as specialty vehicles and equipment, you should get some paperwork with your purchase. These documents can vary based on the type of equipment you’re buying, but can include:
- Government ownership documents, like vehicle titles 
- Inspection Reports
- Maintenance Records
- Safety Certifications
- Records of prior ownership
Tips For Being A Smart Buyer
Educated buyers seldom get scammed, so do your homework before you shop. A little knowledge is your best protection against rip-off artists, and con artists fear nothing more than the real thing. Here are a few things you should know before you go looking to bid and win.
Know The Value of What You Want to Buy
Research the fair market value of a vehicle or piece of equipment. You can consult online pricing guides and check for the winning bids on previous sales on an auction site. Most guides will offer values based on condition.
Research Common Problems & Issues
Most heavy equipment and specialty vehicles will have common areas where something is most likely to go wrong. If you know these points, you’ll know what to look for and ask about.
Understand the Paper Trail
Since different equipment comes with unique paperwork, know what specific records should come with the equipment you want to purchase at auction.
Consider Getting Professional Help
If you aren’t an expert in the kinds of equipment you’re buying, consider hiring an expert to inspect the auction lot you’re looking at and advise you accordingly. This may be money very well spent if it keeps you from getting ripped off or buying equipment that won’t meet your needs.
Stick With Reputable Auction Sites
Most reputable auction sites have their own security measures to keep scam artists off their platforms. While no measures can catch 100% of bad actors, sticking to well established and known sites like Copart can significantly reduce your risks of getting ripped off.
Only Use Common Payment Methods
Many auction sites like Copart offer numerous ways for you to pay including credit & debit cards, wire transfers, and other common means of exchange. Some payment methods, like credit cards, offer scam protection where they will shield you from loss and pursue the scammer for restitution.
The Bottom Line
The best way to avoid being scammed is to ask questions, prepare and think things through. The same things that keep you safe from scams in buying specialty vehicles and heavy equipment will keep you safe from scams in general.
