In this article, you'll learn:
- How fleets can take advantage of virtual auctions
- What equipment can be available at auction
Online auctions
As most things have since the pandemic, auctions have gone virtual.
“With your traditional onsite auction, live buyers would attend the auction, kick the tires, look at the truck, make a buying decision, and bid on it,” said Todd Knutsen, VP of remarketing, pricing, and asset management for Penske Truck Leasing. “A lot of that activity post-COVID moved online.”
Because of that, Penske Used Trucks launched its auction channel last August with an emphasis on being mobile-friendly and fairly hands-off. A wide array of Classes 1 through 8 vehicles and trailers, all coming from Penske’s leasing and rental businesses, are available.
You would have to register and enter a credit card number to place a bid. During the advanced bid process, the site collects the max bid. Once the auction starts, the system will then incrementally bid up to the max for you.
“It kind of works like a proxy bid...it won’t just jump to their dollar amount,” Knutsen said.
It may not be as exciting as being there in person, but online auctions provide access to a far greater amount of equipment.
More mature auction houses, such as Taylor and Martin—which offers mainly Class 8 tractors and trailers with some light- and medium-duty equipment—do a mix of on-site and online.
“It is the best of both worlds,” said Steve Oliver, VP of business development at Taylor and Martin. “If a potential buyer wants to inspect equipment, they don’t have to chase all over the country—it’s all in one place. They don’t have to stay around and wait for the auction; they can join in from wherever they are and buy what they want.”
Oliver advised that prospective buyers inspect the equipment themselves in person or send a third-party inspector.
“Our on-site teams inspect the equipment and are willing to pass along any information that they may have gathered in the process, but we always welcome inspections,” he said. “There really aren’t any cons to sending someone or inspecting yourself. It’s always better to check them out.”
And yes, Taylor and Martin still employs traditional auctioneers, too.
“Our auctioneers make the process fun and easy for all buyers,” Oliver said. “They do chant, which is very exciting and fun to listen to. We also have the asking bid on their computer screen or phone for those who may have a hard time keeping up with the auctioneers.”
By choosing online, instead of intently waiting to wave a paddle in person, a prospective bidder can research available equipment, and check out inspection documents and pictures up to two weeks before the auction. This provides time to figure out financing and do more research.
An advantage for Penske is knowing their technicians were responsible for the vehicle’s care.
“All of our vehicles are maintained throughout their life to high Penske standards,” Knutsen said. “And what matters to most used truck buyers is that they can trust that the major components on the vehicle were maintained at or above OEM standards throughout the vehicle’s life.”
Judging vehicle condition
Unlike the equipment sold through the used channel, auctioned trucks do not receive a full reconditioning process. The trucks do undergo a basic out service, which includes an emissions test, where the truck is de-identified and a condition report is completed, Knutsen said.
“Some of the reasons we choose auction have nothing to do with the vehicle condition,” he explained. “We may be right-sizing our fleet in a given geography. Some of the vehicles could be higher mileage and the auction is just a good channel to sell that vehicle at that price point.”
The former analyst with over 15 years working on Penske’s used side added they don’t use the auctions as a way to dump trucks needing major repairs. “We value our reputation in the industry.”
Don’t expect the equipment to be in mint condition, though.
“Our equipment on Penske Auctions is ‘as is, where is,’ so what they see is what they’re going to get,” Knutsen said.
And you never know what you’re going to get when visiting the auction site. The inventory is far lower than the traditional used channel. In late February, Penske Used had nearly 1,300 Class 8 tractors available; the auction site had under 90.
That’s not to say you can’t find the perfect fit for your fleet. As of late February, there were several 2019-2020 Freightliner Cascadias and a few International LTs, ranging from around 500,000 to 700,000 miles.
You could find a wide array of medium-duty box trucks (most with Penske yellow paint jobs), along with some reefer units and flatbeds.
On any Classes 1-8 vehicle or trailer up for auction, the company does provide detailed inspection and 60-month maintenance reports, along with a gallery of images showing any defects or issues identified via thorough physical inspections.
For example, the report for a white 2019 Freightliner Cascadia sleeper with 575,863 miles noted the truck (located in Springfield, Ohio) would need a jump before starting up, and oil was leaking from the rear engine seal and the oil pan. The tires were also worn below 10/32nds and the interior had some damage and scuffs as well. Still, the DD15 and D12 transmission were maintained to OEM standards and it has collision avoidance. At the end of the auction, no one met the reserve price so it went unsold.
The issues detailed on the report likely gave potential bidders pause, though maybe next time someone with the repair skills and inclination will get her back up and running.
“We provide that third-party condition report to create transparency and help buyers really understand the condition of the vehicle that they’re bidding on,” Knutsen said.
And the more transparency you can get, the more you can be assured you’ll find a great deal.
