Buying Used Computers and IT Equipment at Auction
Computer auctions can be a great place to purchase IT equipment with the possibility of large savings off retail prices. PC’s, laptops and IT equipment found at auction can come from business liquidations, ex-lease, retail returns, insurance claims, ex-government, repossessions or private sellers. Most major capital cities in Australia feature regular weekly auctions of IT equipment.
Some auctions may even include new IT equipment that could be surplus to the wholesaler, company or discontinued/superseded models being cleared by a manufacturer. PC and laptop auctions are also often held for scratch and dent stock that can’t be sold through retail outlets. All sorts of hardware can be picked up for usually well below retail, including desktop PC’s, laptops, networking equipment, peripherals, cable and much more.
Important: Understanding the Type of Sale
Some will see a laptop at a huge discount and rush to bid to seize the bargain of a lifetime, while in reality, they are gambling, perhaps without even knowing they are doing so. Online sales for IT gear are competitive these days, and discounts on retail prices can be slim, so, instead of blindly gambling, let’s try to stack the odds in our favour.
This is really important, different types of sales present different pros and cons, with a business liquidation being very different to a retail return sale. For example:
- Business liquidation: Office gear can be one year old through to several years old, with a high probability of being functional.
- Retail Return: Items purchased at major retailers and returned for credit. The item is new, but its functionality is a pure gamble.
- Insurance Claims: New stock that has been written off. Either physical, water or fire damage in most cases.
It’s generally the last two types of sales that attract the most unhinged bidders. These sales often see items going for close to their retail value once fees and shipping are added. Hot tip: Just wait for the Black Friday or post-Christmas sales, and get a real, brand-new product with full warranty and support! Otherwise, you should be aiming for 50% discount and be ready to accept that the item may be junk, unless you can personally inspect and test the item.
What to watch out for
Used computers at auction generally have had their hard drives wiped and are tested to ensure that they at least turn on, and any reported faults are recorded, although this can differ from auction house to auction house and as to whether it is a private seller or a commercial auctioneer.
Traditional auctions will offer inspection times which are quite useful for inspecting LCD displays for any damage or dead pixels, checking the bootup process for any indicated errors, check laptop hinges, and general condition. USB port damage is another gotcha.
Also, be sure of what the item you are looking at comes with, for instance, a laptop without the charger requires extra expense after purchase, and a laptop with a charger, carry bag, etc. may be worth a little more. It is also worth remembering that batteries, although they are getting better, don’t last forever – the older the laptop, the higher the risk and the less that should be bid.
Also consider the software that comes with the computer or system. A computer without an operating system (OS) software doesn’t do much, so remember the cost of software. Most ex-government or ex-lease computers now seem to come with the Windows licence sticker; be sure yours has it.
It goes without saying, but it’s imperative to research what the items listed at auction are being sold for new, and in the used computer marketplace, so as to know your upper bid limit. Also, check what recent on-sale prices have been. Most importantly of all, make sure you are comparing apples to apples, so to speak, as many laptop models house different specs that can vary the real value enormously.
Use Inspection Times
Personally inspecting the items is the most powerful tool you have. If it’s a substantial purchase or something you are really wrapping your hopes around, just go there and check it personally. If the auctioneer doesn’t allow inspections, you should bid accordingly, or pass if you are unsure.
Find auctioneers in your area: Auction Rooms by State
