Car auction, accidental purchase

CheekyMonkey68

I have just opened a B**  car auction account with a view to buying and selling one car at a time to generate a small income. (First timer)
When attempting to narrow the window on laptop to add another to view two sales at the same time, I accidentally clicked on the bid square, buying a car that I cannot afford to pay for and over double my budget, from a branch 250 miles away! In total panic.

They gave me the option to pay for it in full including the auction charges, or have it put back in to auction for resale. The admin charge for this is £250 plus vat plus the difference between the sale price and the resale price  (If it sells for less in the resale second time around)

I'm worried that I may lose a lot of money, given that a lower price is covered by my stupid and embarrassing mistake. I have had a few sleepless nights and they won't let me off with a slapped wrist or a fine, even though it was a genuine mistake and I am new to this.

Any advice welcome

Thank you

Mutton_Geoff

Since you are setting up a business, can't you just mark this down as a loss to offset against the profits you'll hopefully make when you're up and running?

tacpot12

I think you need to read the auction/website T&Cs, and possibly ask a solicitor to review them if you think you have found that they are not entitled to charge you the admin fee and/or difference in price if you ask them to resell the vehicle.

While is seems very unfair, someone else has lost the ability to buy that vehicle because you clicked on the bid button (when you didn't mean to). 

I think you also need to consider if you could borrow the money to buy the vehicle, and if there a profit in the vehicle at the price you have paid for it. If there is a profit in it, it may be best to pay for it, and crack on with flipping it for that profit. Borrowing from family or friends is rarely a good idea, but in this case they might also be prepared to help with preparing the car if doing so is going to ensure a quick sale. At least selling the car yourself gives you control over the price it sells for. 

Being in business is tough - you don't get any of the consumer protection that retail customers get, and even if you only sell one car a month, if it is your business, you have to give consumers the protection they are entitled to in law. It doesn't strike me that you are financially able to do this, and hence your idea to become a car dealer might need some re-examination. 

Car_54

1. When I started a business, HMRC wouldn't allow any expenses incurred before I'd actually started trading. But I guess there's room for an argument there.

2. Do you really think he'll make any profits? He'll be up against 1,000s of traders with real experience, and even many of those go bust.

Krakkkers

What kind of auction site is it that allows a final bid with one click?

born_again

Krakkkers said:

What kind of auction site is it that allows a final bid with one click?

All of them if you are bidding more than anyone else.

motorguy

CheekyMonkey68 said:

I have just opened a B**  car auction account with a view to buying and selling one car at a time to generate a small income. (First timer)
When attempting to narrow the window on laptop to add another to view two sales at the same time, I accidentally clicked on the bid square, buying a car that I cannot afford to pay for and over double my budget, from a branch 250 miles away! In total panic.

They gave me the option to pay for it in full including the auction charges, or have it put back in to auction for resale. The admin charge for this is £250 plus vat plus the difference between the sale price and the resale price  (If it sells for less in the resale second time around)

I'm worried that I may lose a lot of money, given that a lower price is covered by my stupid and embarrassing mistake. I have had a few sleepless nights and they won't let me off with a slapped wrist or a fine, even though it was a genuine mistake and I am new to this.

Any advice welcome

Thank you

Sadly you'll have to suck it up if you want to not be blacklisted by the auction house.

Welcome to the world of business. 

Grumpy_chap

CheekyMonkey68 said:

I have just opened a B**  car auction account with a view to buying and selling one car at a time to generate a small income. (First timer)
When attempting to narrow the window on laptop to add another to view two sales at the same time, I accidentally clicked on the bid square, buying a car that I cannot afford to pay for and over double my budget, from a branch 250 miles away! In total panic.

They gave me the option to pay for it in full including the auction charges, or have it put back in to auction for resale. The admin charge for this is £250 plus vat plus the difference between the sale price and the resale price  (If it sells for less in the resale second time around)

I'm worried that I may lose a lot of money, given that a lower price is covered by my stupid and embarrassing mistake. I have had a few sleepless nights and they won't let me off with a slapped wrist or a fine, even though it was a genuine mistake and I am new to this.

Any advice welcome

Thank you

You have bought this car to process as a trade vehicle and sell for a profit.
Sometimes, the nature of business, is that you will buy cars that sell on at a loss.
At worst case, any car may turn out to be a wrong-un and only recover the scrap value.

Either, conclude this car and sell on via the retail route you planned, or sell it on via trade.  Either option may make make a profit or a loss.

How much higher was the ending bid compared to the bid before?  Presumably, another trader will bid a similar value to the next bid again.

If your financial resilience cannot tolerate one car rotating at a loss, then maybe this is not the business for you.

HillStreetBlues

Grumpy_chap said:

How much higher was the ending bid compared to the bid before?  Presumably, another trader will bid a similar value to the next bid again.

I expect many traders keep a sharp eye on what's being sold, I would have thought a car relisted will raise a red flag, as it could be unfit to sell to public.

baser999

Agree with @motorguy and would suggest you don’t go pressing auction bid buttons unless you want to buy something. General rule is that when the hammer goes down, it’s yours 

Mutton_Geoff

baser999 said:

Agree with @motorguy and would suggest you don’t go pressing auction bid buttons unless you want to buy something. General rule is that when the hammer goes down, it’s yours 

I think the OP did the digital equivalent of scratching his nose at the wrong moment