Why are goods sold at auction?

There are several reasons why goods may be sold at auction and it is important to know why the goods are being sold and where they came from, this information can be found by consulting with the auctioneers before the sale or it may be stated in the catalogue of lots relating to that auction sale. One of the following may apply

• The goods are being sold to raise cash to pay of debtors if
  the previous owner has gone into liquidation, receivership or bankruptcy.

   

• The goods are being entered in the hope of a dealer making
  a profit from their sale.

   

• The goods are being sold by the owner to create space for
  new stock

   

• The goods are surplus to the owners requirements due to
  new stock being acquired.

   

• The goods have been part of a leasing agreement and the
  term of lease has ended and the goods are not required by
  the leasing company who are now the legal owners.

   

• The goods will not sell any other way due to poor demand
  or over supply.

   

• The goods may be part of an illegal consignment and have
  been confiscated by an official department who now wish to dispose of them.

   

• The goods may have been stolen and the previous owner
  cannot be traced by the appropriate authorities.

   

• The goods may be government department or armed forces surplus stock due to being out of date or over stocked.