Why choose an auction?
How much will it cost me?
The commission rate for the auction will vary, naturally, on the car you’re selling. Having said that, you should generally budget between £100 and £150 as an entry fee, plus 5% (plus VAT) of the final sale price you think you can get. Let’s say you sell a car for £10,000, you will take home £9,400 (£500 plus VAT of 20%.) Obviously, depending on the circumstances, you’ll also need to think about the cost of any repairs, cleaning, covered car transport and other things necessary for getting the lot to the auction in good shape.
Do I get to set a reserve?
This is one of the most common questions asked by people who are considering selling their car at auction, but are pretty inexperienced with the whole thing. Essentially, when you first reach out to the auctioneer, they’ll usually ask for a few photographs of the vehicle, along with various details, such as the age, the service history, mileage, and overall condition. Having heard those details, they’ll then come up with an estimate as to how much they think the car will fetch at their auction. This, in turn, can be used to come up with a fair reserve price. If the bidding on your car doesn’t reach or break this price, then the car won’t be sold. However, if it gets pretty close, you’ll often be asked if you want to meet the highest bidder in the middle. This can usually get you a pretty decent deal, but you’re under no obligation to accept it if you don’t want to.
If you were curious about selling your car at auction, I hope this little post cleared up a few niggling uncertainties.
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