Hypothetical example: all-in budget for a $60,000 auction machine
| Line | Source of the figure | Amount |
|---|---|---|
| Hammer price (winning bid) | Your maximum bid | $60,000 |
| Buyer premium (hypothetical 10%) | Auction terms | $6,000 |
| Invoice from the auction | Hammer plus premium | $66,000 |
| Tax estimate | Your accountant's figure | $4,500 |
| Transport | Written carrier quote | $3,200 |
| Rigging and unloading | Written rigger quote | $4,800 |
| Electrical hookup | Electrician quote | $2,500 |
| Working cash after delivery | Your own cushion | $5,000 |
| All-in budget | $86,000 |
Every figure is hypothetical, including the premium and the tax line. Use the percentage in your auction's terms and the tax figure your accountant gives you, then total the column the same way.
What is the hammer price and what does the premium add?
The hammer price is the winning bid, and the buyer premium is an extra charge the auction adds on top, so your invoice is always higher than your bid.
In the example, a $60,000 bid with a hypothetical 10% premium produces a $66,000 invoice. The premium percentage is set in the auction's terms and can differ by lot, by payment method or by how you bid, so read the terms before you set a ceiling.
Work backward. If your all-in budget can handle $66,000 at the auction, your maximum bid is $60,000, not $66,000. Many buyers lose money by treating their cash limit as their bid limit.
Our guide to equipment auction financing explains how funders view an auction purchase, and the equipment auction total cost calculator lets you run your own numbers.
How should you handle tax estimates and transport?
Treat tax as a user-supplied estimate: ask your accountant what applies to your purchase and enter that dollar figure, rather than guessing a rate yourself.
Rules differ by state, by buyer and by whether the machine leaves the site, so we do not publish rates here. A short note from your accountant with a dollar estimate is enough for your budget and for a funder who asks how you arrived at the total.
Transport is the other line people underestimate. Get a written carrier quote that names pickup address, delivery address, the machine's dimensions and weight, and any permits for oversize loads. Ask whether the quote includes loading at the auction site, since that may need a separate crew.
Check the auction's removal deadline too. Storage fees can start if the machine sits past the pickup window, and a transport delay then costs you twice.
What do rigging and installation cost on top?
Rigging is the specialized lifting and positioning needed to get the machine off the truck and onto its footprint, and it is quoted separately from transport.
In the example, the rigger charges $4,800 and an electrician charges $2,500 for hookup. Heavy machines may also need floor anchoring, a crane, a forklift rental or a loading dock. Ask each vendor what is included and what a failed first attempt would cost.
- Confirm the doorway, ceiling height and floor load at your site before bidding.
- Ask whether the machine must be partly disassembled for the move.
- Get insurance certificates from movers who will touch the equipment.
A funder looking at your request sees these quotes as proof you have planned the purchase beyond the bid. See the equipment financing for auction and used equipment page for the products that usually fit.
How much working cash should remain after delivery?
Keep a cash cushion that covers the first payments and any surprise, because the machine does not earn anything until it is installed and running.
The example sets aside $5,000 after the other costs. That cushion pays for test material, a repair found at startup, or the first payment arriving before the first job.
Ask whether the funding request can include soft costs such as transport and rigging, or only the invoice. Each funder decides what it will include, so say what you need in your application. When the budget is clear, describe your purchase and deadline with the auction invoice or listing, your quotes and recent bank statements.
If the numbers do not leave a margin, walking away is a good outcome. A lower bid ceiling is cheaper than a machine you cannot afford to run.
Frequently asked questions
Is the buyer premium part of the price I fund?
Usually the auction invoice includes the premium, so the invoice total is the figure to show a funder. Ask whether transport and rigging can also be included. Each funder decides what it will include in an offer.
Should I include sales tax in my budget?
Yes, as an estimate you get from your accountant. Rules vary, so enter a dollar figure they give you rather than guessing a percentage. Update it once the final invoice arrives.
What if the auction wants payment before I have an offer?
Check the payment deadline in the auction terms before you bid. Ask the auction whether it allows a short extension, and apply early with the listing attached so the review can move while you finish your quotes.
Can I fund the rigging separately from the machine?
It depends on the product and the funder. Some requests include soft costs in one amount, others do not. Describe every cost in your application so the funder can say what it will cover.
What documents will I need for an auction purchase?
Commonly recent business bank statements, government-issued ID, a voided business check, and the auction listing or invoice. Transport and rigging quotes help show the total plan.
Describe your purchase and deadline
Tell us about the auction lot, the total budget and when payment is due.
Updated October 17, 2026 · Prime Funding Now Funding Team