Buyers auction costs
Discussion
Browsing in a classic car auction site and a car caught my eye, worth a look and a punt I thought.
Now I have never purchased a car or anything else via an auction, so best I look up how much it may cost me to buy from this auction house. I am shocked to find that the buyers fees amount to
19.5%. That seems excessive to me especially when I see Matthewsons auction house charge 5% buyers fee.
The 19.5% is enough for me to say to myself ‘I won’t bother’ to bid.
Now I have never purchased a car or anything else via an auction, so best I look up how much it may cost me to buy from this auction house. I am shocked to find that the buyers fees amount to
19.5%. That seems excessive to me especially when I see Matthewsons auction house charge 5% buyers fee.
The 19.5% is enough for me to say to myself ‘I won’t bother’ to bid.
Bob-iylho said:
Just take it into account and work out your max bid allowing for additional fees.
No need to not bid, just good that your aware of it, some people get a big shock.
Problem I have is that the reserve is set at a fairly high pitch, even at reserve the car ( or similar) could be purchased at a lesser price via a private deal. My problem of course, it for me an auction car comes with a risk attached and I expected to pay less at auction. Like I say it’s my problem but I thought it worth starting a small thread perhaps.No need to not bid, just good that your aware of it, some people get a big shock.
Classic car auctions charge less than the auction houses who usually sell jewellery, vases, pictures, clocks and the like. They sometimes have the odd car and they charge 20% - 25% or more, + VAT!
SWVA charge 10% inc. VAT (recently went up)
ACA charge 8% + VAT (min £200)
Silverstone / CCA / H+H / Barons and the like is often 12.5% + VAT. And 5% to the seller! Yes, it's a good living for what is often photos supplied by the vendors (Silverstone / CCA / H+H, I'm looking at you here) and washing their hands of any responsibility if the cars have hidden faults.
SWVA charge 10% inc. VAT (recently went up)
ACA charge 8% + VAT (min £200)
Silverstone / CCA / H+H / Barons and the like is often 12.5% + VAT. And 5% to the seller! Yes, it's a good living for what is often photos supplied by the vendors (Silverstone / CCA / H+H, I'm looking at you here) and washing their hands of any responsibility if the cars have hidden faults.
It might sound steep but a) they often do a lot of work for a low sale % (ie not all lots will sell, but all get advertised), and b) I think they like to weed out the "wrong" type of buyer. It takes a certain sort to be comfortable with auctions. Most folk like the easier path of dealer premises / service or private sales, where you have a little more time, opportunity to drive before committing etc.
rovermorris999 said:
Car&Classic online auctions charge zero fees for buyers. You can usually still go and view the vehicle at the vendor's address and test just like a private sale.
Yes I’m an avid browser of C&C, just a little unfortunate for me that the little car I spotted is not in there. But I’m old enough to know that there will always be another car to buy.Turbobanana said:
It might sound steep but a) they often do a lot of work for a low sale % (ie not all lots will sell, but all get advertised), and b) I think they like to weed out the "wrong" type of buyer. It takes a certain sort to be comfortable with auctions. Most folk like the easier path of dealer premises / service or private sales, where you have a little more time, opportunity to drive before committing etc.
Yes, but many of them they charge a substantial entry fee to cover all their costs. CCA, for example charge £250 + VAT just to have the car in their catalogue. As I mentioned above, unlike SWVA, Brightwells, ACA, Mathewsons and others who receive the vehicle on their premises and photograph / video them, they just regurgitate the vendors' supplied photos. They make very little assessment of the vehicles as long as they get their fees. sixor8 said:
Turbobanana said:
It might sound steep but a) they often do a lot of work for a low sale % (ie not all lots will sell, but all get advertised), and b) I think they like to weed out the "wrong" type of buyer. It takes a certain sort to be comfortable with auctions. Most folk like the easier path of dealer premises / service or private sales, where you have a little more time, opportunity to drive before committing etc.
Yes, but many of them they charge a substantial entry fee to cover all their costs. CCA, for example charge £250 + VAT just to have the car in their catalogue. As I mentioned above, unlike SWVA, Brightwells, ACA, Mathewsons and others who receive the vehicle on their premises and photograph / video them, they just regurgitate the vendors' supplied photos. They make very little assessment of the vehicles as long as they get their fees. POORCARDEALER said:
Very excessive fees at some of the auction houses - Bonhams online The Market have recently changed from charging the seller commission to the buyer - I guess because it’s getting harder to attract lots with all the other online auctions.
I believe that was more due to bringing it in line with what could become a standard set up, they don't seem to have an issue attracting lots, especially given that they only recently purchased a load of storage ramps to increase their on site capacity. lukeharding said:
I believe that was more due to bringing it in line with what could become a standard set up, they don't seem to have an issue attracting lots, especially given that they only recently purchased a load of storage ramps to increase their on site capacity.
Yes, that’s the official line they trotted out in an email to me.POORCARDEALER said:
lukeharding said:
I believe that was more due to bringing it in line with what could become a standard set up, they don't seem to have an issue attracting lots, especially given that they only recently purchased a load of storage ramps to increase their on site capacity.
Yes, that’s the official line they trotted out in an email to me.POORCARDEALER said:
lukeharding said:
I believe that was more due to bringing it in line with what could become a standard set up, they don't seem to have an issue attracting lots, especially given that they only recently purchased a load of storage ramps to increase their on site capacity.
Yes, that’s the official line they trotted out in an email to me.Trade Classics charge the buyer 5% + VAT (i.e. 6%), Collecting Cars is 7.2% inc. VAT.
It's still a bit of a variable.
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