Global equipment financier DLL last week launched an online auction platform that could help stabilize a volatile used-equipment market.
The new “Equipment Showroom” features used equipment across the globe, with options to buy instantly and bid via closed or open auction. DLL owns all the equipment in the showroom.
DLL offers financing options for prospective buyers, including floorplan financing for dealers, traditional retail financing and several types of leases, DLL Global Asset Sales Manager John Mollaghan told Equipment Finance News.
The new platform’s implementation comes amid historic spreads between asking and auction values of used equipment. DLL aims to bring transparency to the auction market by giving all registered bidders equal access to the same listings, allowing participation from anyone at any time, with no hidden fees or commissions, according to a Nov. 7 company release.
This transparency could lead to more stable pricing by revealing “the genuine demand levels within the market, allowing buyers at our auctions to observe real-time market dynamics and gain insights into what constitutes fair pricing,” Mollaghan said.
Online auction market growing
The online auction market for hard asset equipment is valued at nearly $11.6 billion and is projected to grow 18.5% annually to $27.1 billion by 2029, according to market research firm Mordor Intelligence. More than 26% of construction companies purchased equipment via auction over a 12-month stretch ending in March, according to a survey by data provider EquipmentWatch that included more than 100 respondents.
While digitalization has helped streamline the bidding process, auction platforms for used equipment still need improvement, Mollaghan said, citing a need for “transparency and consistency.”
“Buyers and sellers have often had limited visibility into true market demand, which can make pricing feel unpredictable and even create hesitancy,” he said.
