When you want to acquire a good, the automatic thought is usually the traditional purchase and transaction of a new good due to several factors, among which are the guarantees of condition and conservation as well as the lack of knowledge of other purchasing methods.
It is within this scope of other methods of purchasing goods that auctions are included.
Acquiring a good at auction has several advantages for the buyer and high business transparency. Some of these advantages are:
– A purchase at auction entitles the buyer to acquire the good after personally seeing the state in which it is and verifying if the business is viable.
– In auctions the discounts involved can reach very large percentages of the market value of the auctioned good, which implies a lower cost borne by the buyer.
– The buyer knows what the seller wants and that he is committed to sell the auctioned good.
– The buyer determines the selling price.
– Auctions allow for reduced trading time.
– Purchase and closing dates are stipulated and recognizable.
– Buyers receive relevant and understandable information.
– Buyers know that they compete fairly and on the same terms with other buyers.
– Corporate Finance Institute. (2022). Auction – Buying or selling goods and services through a bidding process. https://corporatefinanceinstitute.com/resources/knowledge/finance/auction/
– Adamson, R. (2016). Dispelling some auction myths – the advantages and disadvantages of buying at auction. https://www.allsop.co.uk/media/dispelling-auction-myths-advantages-disadvantages-buying-auction/