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sold my first car at auction 1/02/10 , i put for sale my 1999 fiesta 1.25 zetec , really good condition , 78k,timing belt done , serviced and 5 months remaining r/tax 4 months mot,all mot certificates since its first one, i got the sum of £425 , phoned the auctions later in the evening they told me i would be recieving £333 after there deductions , i was quite surprised at the amount they charged, i would have tried selling it online/advertised locally but my replacement car arrived the same day and i only have room to park one car, so to go back to my subject heading this is the industry to be in, £92 from me and whatever premium the buyer had to pay aswell ,all makes for a really nice profit for not a lot of input
Edited by Pugugly on 02/02/2010 at 01:00
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I see your point but they've got to provide premises and pay staff and public liability insurance etc. It is a business, after all.
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there were between 100 and 150 vehicles going through , 4 drivers and three office staff , auction is held three times a week , even after wages and other costs , there is still a large profit being made, probably one of the few areas of buisness that currently see's regular profit ,
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You got shut of it fast and thats what you paid for great service!
You could have tried e bay and get the hassle from potential buyers you may have made a slight bit more but was your gamble.
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I quite agree with you mark b.
A 10k car at my local auction house would fetch them around £600 from seller (including entry fee) and another £600 from the buyer. All plus VAT. Even a £3k car is worth nearly £400 to them from both sides.
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Those fees don't look too bad - was it an independent?
Unfortunately the car auction business in the UK is essentially a duopoloy for 95% of the major business with a few small independent scratching around for the rest. Once upon a time there were 5 or 6 larger companies all competing but one by one they all got bought up and merged.
Of the two "majors" one is owned by a private equity house and one is part of a very large US corporation and they know that between them they can pretty much do what they like as they have the market tied up.
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So they've charged you 18% + VAT? Seems like a bargain to me. Autotrader or eBay would have cost you what, £35? So their extra cost is £57 in exchange for having done ALL the work for you.
Bargain.
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So they've charged you 18% + VAT? Seems like a bargain to me.
That's identical to the average gross profit margin a well-known, publicly-quoted multi-franchise national dealership group (and no doubt others in the trade) expects from actually selling its cars to the public. Higher overheads, staff training, after-sales service for customers, etc all then have to come out of this...unlike at the auction house who won't even wash and prep a car for you without demanding extra payment.
As the OP says, this looks to me to be a better financial game to be in than trade buying and selling retail.
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"..unlike at the auction house who won't even wash and prep a car for you without demanding extra payment"
no i did all the prep myself, although it did not need much as it was always waxed an hoovered regularly, it was gleaming, a really nice example of a 11 year old car
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If it was that good, could you not have found a friend or family member to take it off your hands?
£300 for an eleven year old car isn't too wide of the mark.
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After recent delivery of my new car I wanted an easy way to sell the old one so immediately decided to use BCA. My target was to pull in £1500 clear. Looked at the BCA charges and a bit taken aback to see they would want almost £250 in fees so it would have to make £1750 under the hammer.
At that price I think the buyer would end up paying about £1900 inc premium/fees.
Looked at the other way if it's true max value was £1500 then a buyer at auction would have likely stopped at £1350 to allow for premium and I'd have received £1100.
I thought if anyone would pay getting on for £1900 at auction they'd be over the moon to buy it from me direct at £1500 and within hours of mentioning it to my indy who'd serviced it they'd found a buyer at that price and they didn't want any cut.
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£12,992was £13,291Details
£13,314was £13,466Details
£12,135was £12,650Details
£12,490was £12,790Details
