Nov 2 2015 state of genset sales

[Daybreak]

Howdy,
I wonder if the auction companies will get the idea that the reserves are way to high.

Point in fact= GL closed out almost all MEP-803A generators with only 4 making reserve, out of 40 lots across America.

 

[OilfieldRoughneck]

I would hope so. It has kept me from bidding on any.

 

[DieselAddict]

Same here. I did win 3 MEP802a machines today though.

 

[Isaac-1]

I know it is insane, I saw a MEP-831 on GL at just under $3,000 with reserve not met, they need to remember that they are selling stuff AS-IS not tested and running, not even working when pulled.

 

[Daybreak]

Howdy,

Not running. The pictures are horrible (not showing much) No batteries. Classed as F or H condition.

 

[Chainbreaker]

With those kinds of reserve prices and conditions Craigslist can often turn out better deals when units do show up if close by. For the record I have bid on GL auctions but always got outbid for one reason or another...guess I'm too cheap! When dealing with a CL seller you have the ability to negotiate based on the units actual condition and can walk from a deal if unsatisfactory. I bought all 3 of my MEP-002a's off CL (2 were on M116A2 trailers!) for an average price of $1333 (West Coast prices even) within the last 2 years. In every CL transaction I was able to closely inspect and run them and then test with a Kill-A-Watt meter except for one which was not running. I bought it for parts but it turned out to be a runner with zero cost in parts! It just needed some tweaking of stop solenoid...lol.

 

[tommys2patrick]

I wonder what they used as a market base to set the reserve? Could the scrap value be that high? I don't see how. I guess it will correct itself like the reserves on Hummers did at another auction site.

 

[DieselAddict]

Overall I've been disappointed in the auction prices here in the south east. The prices here seem to be a good bit higher than whats being reported in other areas. It makes for a real challenge to get these great machines recycled and into the hands of people that can really use them.

 

[DieselAddict]

Howdy,

Not running. The pictures are horrible (not showing much) No batteries. Classed as F or H condition.

I've found that the condition they list is rarely accurate. I was talking to one of the guys when I was picking up and he indicated for them to put a rating of anything other than scrap or unserviceable they have to document with photos and video to demonstrate any claims of functionality. He said that with only 2 guys working there that they don't have the resources to test out all the equipment and so they code it is unserviceable even if its obviously new or in great condition. As an example I picked up a MEP831a earlier this year that was still brand new but listed as "H". The 802s that I'm going to pick up this week are the same. I personally examined every generator I bid on and they are all like new but were listed with "G" ratings. I have no doubt all they need is an oil filter, batteries, and fluids to be functional.

 

[tommys2patrick]

It would be great if some of those kind went thru OKC. Good central mid-west location with easy access.

 

[robson1015]

GL is gonna price themselves out of the surplus business. A poorly run operation in my opinion.

 

[Daybreak]

But, with the same respect. The week before I saw some prices shoot to the moon. I was surprised where the prices went. Double the price I thought it was worth. Its always a variable from week to week. It just really hurts to bid on a unit, and keep bumping it up waiting for it to break the reserve. You then stop, because you still haven't broken the reserve. As said, the unit is sold AS-IS. They do have value, but, it still needs to be reserved as such.

 

[DieselAddict]

Yea, I set my limit about $800 (with tax and fees) below what I think I can sell them for. If they bust that I don't worry about it. The bids went within a few $$ of my limit. It made for a bit of nerves right at the end.

 

[WILLYSOVERLAND]

The government tells them what reserve to set. My local guy told me they were pushing for more money. I wish they didnt try to start them. You just know they are pushing all that bad fuel and dirt into the pump and injectors.

 

[NEIOWA]

The government tells them what reserve to set. My local guy told me they were pushing for more money. I wish they didnt try to start them. You just know they are pushing all that bad fuel and dirt into the pump and injectors.

Can you document that?

The two surplus vendors pay Sam a fixed % (by their bid/contract) of acquisition price for everything that comes across the dock. They then own it and can self for whatever they can get out of it.

 

[Rapracing]

I'm guessing they are hoping people will start thinking that is what they have to pay to get one. A lot of people use no common sense. They are bidding these to crazy prices and still not getting them. Once GL figures out where they can set these reserves and sell the majority that is what will happen and dumb (sorry) people will pay for them.

 

[TooMuchWork]

I was wondering about this too. At about 15-30 minutes before the end of auction I noticed that some of the items at the local GL site that were were not yet at reserve but above "X" amount magically somehow met reserve even though the bid didn't change. I still feel comfortable bidding on the items that I can inspect and touch but it does start to raise a lot of questions.

 

[rustystud]

GL sets there own prices and from what I've been told by the manager at ( "deleted" don't want him in trouble) GL is in financial trouble big time. He told me that they had just layed off half their employees and his job wasn't looking too bright either. According to this manager the vehicle sales (trucks, trailers) made up the bulk of the money GL made. That was one reason they made all those videos showing the trucks running and driving.