Buying Specialist Assets at Auction: Things Worth Thinking About

Not every auction bargain has tracks or wheels. Boats and aircraft, solar arrays and wind turbines, medical scanners, servers and laptops, gym equipment and containerised generators all come up at specialist and insolvency auctions.

These assets can offer the biggest savings, but they also carry the biggest unknowns. A general inspection won't tell you whether a scanner can be recommissioned or a vessel is seaworthy. These are the questions worth asking before you bid.

1. Before the sale

• —Do you have an expert on side? Specialist assets need specialist eyes: a marine surveyor, an aircraft engineer, a service engineer for medical kit, or an IT specialist.
• —What is it really worth? Second-hand markets for specialist kit are thin. Ask dealers and specialist valuers, not just past auction results.
• —Is the manufacturer still supporting it? End-of-life equipment may be impossible to service or insure.
• —What are the terms? Specialist and online sales can carry higher buyer's premiums. Read the conditions before you register.

2. The asset itself

• —Can it be tested? Ask whether equipment can be powered up or demonstrated at viewing.
• —What does it take to move? Scanners, turbines and server racks may need professional decommissioning, rigging and recommissioning.
• —For marine and aviation: ask for logbooks, maintenance records and survey or inspection reports. Gaps in records can affect value and whether it can be used at all.
• —For technology: check age, spec and condition. IT loses value quickly, so price it accordingly.

3. The paperwork and the law

• —Is the title clear? Vessels and aircraft can carry registered mortgages, so check the relevant register before you bid.
• —What transfers with it? Software licences, warranties, service contracts, grid connections and energy payment agreements often do not pass to a new owner.
• —What compliance applies? Medical equipment, lifting gear and pressure systems may need certification before use.
• —For IT: confirm that drives have been wiped or removed to recognised data-sanitisation standards.

4. The real cost

With specialist assets, the costs around the hammer price can be as big as the premium. An illustrative example for a used medical scanner bought by a VAT-registered private clinic:

VAT treatment varies by asset and by buyer, and not every business can reclaim it. Check the real figures for your sale, and ask your accountant about VAT.

5. The money

• —Can you pay within the deadline? Specialist sales often want payment within days, with removal soon after.
• —Will a lender fund this asset? Lenders favour assets with a clear resale market. Fast-depreciating kit may be funded on the strength of your business and its income instead.
• —Is your finance agreed before you bid? Pre-approval matters even more here, because finding a lender with appetite for an unusual asset takes time.
• —Did you buy with cash? You may be able to release that cash later by refinancing the asset, subject to lender approval.

6. After the hammer

• —Is it insured from the fall of the hammer? Specialist insurers may need details in advance, especially for vessels and aircraft.
• —Who is moving it? Book specialist movers and engineers before the sale. Removal windows can be short.
• —When will it earn? Allow for recommissioning, certification, training and any regulatory approvals before it is in use.

Finance arranged before auction day

Our sister brand, Hammer Ready, arranges finance for specialist assets bought at auction, including marine and aviation assets, renewables, healthcare and technology equipment, and gym equipment. It can help you get pre-approved before you bid, fund a lot you have just won, or release cash from an asset you bought outright in the last six months.

Hammer Ready works with limited companies, partnerships, LLPs, sole traders and PLCs, on amounts from £26,000. There is no broker fee, and all finance is subject to status and lender approval.