Car Auction Buyers Fees

ben9090

Hi
I know there are numerous threads on pros and cons of buying at car at auction but many have lots of conflicting informaion. Ive attended both a BCA and Manheim auction and am looking at bidding on a low mileage ex lease vehicle at an upcoming manheim auction.

Can someone in the know just confirm the buying process.

If I buy a car with a hammer price of £6000 the buyers premium
according to the chart is £301.

On-top I know there is a DVLA notification charge and an inspection fee if applicable.

Is there anything else to pay???

Can someone just confirm what the word in the description 'margin' and 'qualifying' mean. Is this only applicable if you're VAT registered or is anything else applicable ontop of the hammer price?

Once Ive paid and if the V5 is present I can go straight to the post office with the correct insurance cert printed off go to the post office to tax and drive away. If the V5 isnt present Ive a choice of storage or getting the vehicle delivered and kept off the road until a copy V5 has arrived? Is this correct?

Thanks for your help.

Ben

Hammyman

As well as the buyers fee there is usually indemnity insurance to pay as well.

"Margin" and "Qualifying" refer to the VAT schemes applicable. Margin usually means it is VAT accountable under the VAT margin scheme so no VAT is added to the hammer price. Qualifying means VAT is added to the hammer price.

property.advert

Someone posted a while back about non car dealers getting shafted (not just on the price due to fictitious bidding) but also on the extra costs at auctions. Perhaps they can chip in here.

rodenal

Rule of thumb but on a £6k car expect about an extra £450-500 added. If you're buying a car under a couple of grand it'd be more like £250/£300

neilmcl

Hammyman wrote: »

As well as the buyers fee there is usually indemnity insurance to pay as well.

I've never heard of this, bought a number of cars in the past at BCA.

OP, you'll pay the hammer price (an immediate deposit of around 20%, then final payment within 24hrs I think), on top of that you pay the buyers fee which is posted at the auction centre and a further £25 to transfer the V5. Nothing else is payable unless you pay by credit card where there's a fee.

Ignore the terms "margin" or "VAT qualifying", these are only relevant to traders.

If you look on either BCA or Mannheim websites the information is quite clear.

neilmcl

property.advert wrote: »

Someone posted a while back about non car dealers getting shafted (not just on the price due to fictitious bidding) but also on the extra costs at auctions. Perhaps they can chip in here.

Nobody gets "shafted" but you can easily get carried away and pay far too much if you don't know what you're doing.

blacksta

Watch out for sellers who bid on their own cars. In that instance i would simply walk away

fivetide

blacksta wrote: »

Watch out for sellers who bid on their own cars. In that instance i would simply walk away

How does one do that? Do they put a picture of the seller on each motor so you know? (I know they don't I just wondered how you knew what out of the 100's of cars belonged to who.

5t.

blacksta

fivetide wrote: »

How does one do that? Do they put a picture of the seller on each motor so you know? (I know they don't I just wondered how you knew what out of the 100's of cars belonged to who.

5t.

If one is quite observant, these fake bidders generally stand out like a sore thumb. They normally gather in groups with protruding bellies

fivetide

blacksta wrote: »

If one is quite observant, these fake bidders generally stand out like a sore thumb. They normally gather in groups with protruding bellies

Sounds like 90% of the people there last time I went!

neilmcl

fivetide wrote: »

Sounds like 90% of the people there last time I went!

+1, :rotfl::rotfl:

Seriously, OP do your research, decide on the price you want to pay and stick to it. Don't listen to all the urban myths about traders/auction houses working together to fleece you. You'll be fine.