Intimidating to some but easy to get into, motorbike auctions are a goldmine where buying quality bikes is concerned. It can be quite complex if you have never been to an auction before, but if you have a good eye for bargains and know your motorbikes, you can benefit greatly from what the market offers.
Plus, you never know what to expect. You may go in looking for a 649cc Kawasaki and end up clinching a classic Triumph for a third of the price. It is not all plain sailing, though. There are some dangers that buyers can fall into, specifically if they do not check the motorbikes thoroughly or end up paying more than they would have liked to get a certain model. A cool head is needed, and in this guide, we will go through all the hiccups that newcomers may run into without any prior experience.
Why Beginners Need Guidance on Motorbike Auctions
Motorbike auctions tend to have inspection days for potential buyers to take a closer look and possibly even test the bikes for themselves. All auctions give out catalogues where the available bikes are listed so the viewers can do their research and learn about the models going under the hammer. Most people who come to the auctions have a realistic idea of which models they want to buy and how high they will go with their bids.
Bidding is where a lot of newcomers can end up overspending on a bike. Especially for bikes that are non-VAT qualifying, and buyers need to dig into their pockets to pay the commission, administration fees, and possibly even a transportation fee. Here is a run-through of what beginners can expect at a typical motorbike auction.
Understanding How Auctions Work
At some auctions, registration is required, which can be done at the auction house or by filling in an online form. However, for most British Car Auctions, visitors can pop up without a pre-registration. These visitors can ask the rostrum clerk for a catalogue of the models that will go under the hammer and look for items that they may be interested in bidding on. In motorbike and automobile auctions, there are also viewing days prior to the auction when interested parties can investigate the models for themselves.
During the auction itself, the catalogued items are called out and all registered or permitted parties are allowed to make bids on the items. When no one raises the bid, then the highest offer stands and the bike is sold. Following the purchase, the winning bidder has to proceed to the payment desk, where they will pay out the hammer price and any additional fees and finalise the paperwork. They can then take their bike straight away or arrange to have it delivered at a later date.
VAT, Commissions and Additional Fees
Buyers have to be wary of the additional fees and the possibility to claim VAT on their purchases at an auction. The VAT margin scheme is calculated on the profit margin of the sale, and not the selling price of the bike.
Buyer’s Premium is a commission fee that is charged at the auction house on top of the hammer price. It ranges from 10% to 15% and may have additional VAT. Then, there are administration fees that may be required for processing the paperwork and fees that can be applied to storing or transporting the bike should you not take it with you straight away.
Tips to Succeed in Motorbike Auctions
The goal at any auction is to get valuable items for good prices. Some buyers don’t mind if the bikes themselves have some wear and tear or need renovating so long as the price is right. It all depends on your budget and what you are looking for.
You should always do your research on each model and make approximations on how much they could be worth. Don’t set your heart on one specific bike in the auction, as you may have to go above your spending budget to get it. Money that could have been spent buying another bike for a more reasonable price. Always remember that there are additional costs, and don’t overspend.
Ultimately, as you attend more auctions, you will get a feel for how the system works and can learn how to fish out good deals. In some cases, you may even buy bikes that you otherwise wouldn’t have considered. But if they come at the right price and do the job, then they can be a wise investment.
