Why opt to sell at auction?
How much will it cost me?
The commission rate for the auction will vary from place to place, and also on what you are selling. A typical entry fee would cost around £100, plus a commission of 5% (excluding VAT) of the final sale price. So for example, selling a car for a hammer price of £15,000, you will take home £14,000 (being £15,000 less 5% commission [£750 + VAT = £900] less £100 listing fee). Be aware that you may need to consider costs of getting your car in the best shape to go to auction, although most cars are generally 'sold as seen'.
Can I protect myself from low prices?
This is a common concern for inexperienced auction users. When you speak to the auctioneer, and they have seen pictures and details of the car you are selling, they will generally offer an estimate as to how much they think the car will sell for. If you want to protect yourself from selling for less than this price, then you can set a reserve price. If the bidding on your car doesn’t reach or break this price, then the car won’t be sold. That's not to say that you couldn't offer` to meet the highest bidder in the middle, but the key is that you are under no obligation to sell if the reserve is not met. You would still have to pay the listing fee however.
If you were curious about selling your car at auction, I hope this post offers some clarity on the matter. Why not find a local auctioneer and check one out for yourself. But above all, don't be afraid of considering it as a way to sell your car: it could be the best decision you make!
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