keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,875
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Post by keitha on Dec 31, 2020 10:28:17 GMT
I have access to a specialist Auction that sells stock and other Assets from liquidation etc.
recently there were a bunch of fancy tents for sale all clearly marked as RRP £550
Now with these auctions you pay 20% VAT on the hammer price
Plus 15% commission and 20% vat on the commission
so a total of 38% added on
so why oh why were people bidding at £500 plus
they do the same with a lot of electricals, taking laptops as an example I tend to look at eBay prices for a guide to that model, often they will bid 10-20% above what you could get it for on eBay.
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Post by stevepn on Dec 31, 2020 11:06:10 GMT
I have access to a specialist Auction that sells stock and other Assets from liquidation etc. recently there were a bunch of fancy tents for sale all clearly marked as RRP £550 Now with these auctions you pay 20% VAT on the hammer price Plus 15% commission and 20% vat on the commission so a total of 38% added on so why oh why were people bidding at £500 plus they do the same with a lot of electricals, taking laptops as an example I tend to look at eBay prices for a guide to that model, often they will bid 10-20% above what you could get it for on eBay. Can some people claim back VAT such as contractors?
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dead-money
Rocket to the Moon
Posts: 739
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Post by dead-money on Dec 31, 2020 11:15:55 GMT
They're just fools who don't factor in all the costs and/or get bidding fever; same on eBay, secondhand goods sell for more than new.
Exactly the same at car and house auctions, people overbid beyond any achievable return.
Yes, you can reclaim VAT, if you're VAT registered, but that's cost neutral, as you'd have to charge VAT on the subsequent sale.
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hendragon
Member of DD Central
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Post by hendragon on Dec 31, 2020 11:41:50 GMT
We have traded in antiques and collectibles for a number of years and attended auctions as far apart as Aberdeen (Deeside is a beautiful area) and Penzance. Auction fever is far more common even amongst experienced buyers than you might think. The process has more in common with striking a bet rather than making a purchase. Learning the discipline of sticking to your budget and being prepared to walk away without buying something that is too expensive is not that easy for some people.
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adrianc
Member of DD Central
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Post by adrianc on Dec 31, 2020 12:04:29 GMT
Yup, idiots with hammer fever. I was looking a while ago at a pole pruner, basically a cross between a giraffe and a chainsaw. About £400 new for a decent one. There's a local machinery auction, so I went along to that. There was just one. Ex-local-authority, clearly seen a LOT of life. Probably needed a new chain, no way to see if it'd start. I thought for £100 all-in, it might be worth a punt. They started bidding at £250 + vat + premium etc. I just walked away, didn't even hear where it finished... BUT... Not all the bidders are paying Joe Punter premiums. Some of them are paying a lot less, because they're traders, volume buyers. Mind you, they do tend to have some VERY tempting stuff listed. I have absolutely no idea what I'd do with one of these, but they usually have a selection, and they aren't anywhere near as expensive as you'd think...  Fortunately, I've resisted temptation. So far. |
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