Navigating an auction can be daunting if you aren’t familiar with the jargon. Use this guide to bid with confidence during any timed online auction.
1. The Basics: Starting Your Bid
Lot: An individual item or a group of items sold as a single unit. Each lot is assigned a unique number in our catalogue.
Starting Bid: The lowest price at which the bidding opens.
Reserve Price: The confidential minimum price a seller is willing to accept. If the bidding doesn’t reach this amount, the lot remains “unsold” or may be sold “provisional” (see below).
Bid Increment: The set amount by which the auctioneer increases the price. For example, if the increment is £500, the next bid after £5,000 must be £5,500.
2. The Mechanics: Live vs. Timed Auctions
The Hammer Price: The final winning bid reached when the auctioneer’s gavel falls. This is the base price before any additional fees or VAT are added.
Soft Close / 5-Minute Rule: To prevent “sniping” (bidding at the last second), if a bid is placed within the final 5 minutes of a timed auction, the clock will reset to 5 minutes to give everyone a fair chance to respond.
Absentee / Proxy Bid: A feature that allows you to set a maximum price you are willing to pay. Our system will then automatically bid on your behalf, in increments, only up to your limit.
3. Condition & Descriptions (Specific to Watts Auctions)
As-Is, Where-Is: A standard auction term meaning the item is sold in its current state with no warranties.
R&D (Runs & Drives): An observation made by our team that the machine was seen to move under its own power. Note: This is an observation, not a mechanical guarantee.
RDL (Runs, Drives, Lifts): Commonly used for forklifts or telehandlers, indicating the lifting mechanism was also observed to be operational.
4. Post-Auction: Payments & Fees
Buyer’s Premium: A percentage-based fee added to the hammer price. This covers the auctioneer’s administrative costs.
Example: If the hammer price is £1,000 and the premium is 10%, your subtotal is £1,100 (plus VAT).
Provisional Bid: If the highest bid is just below the reserve price, the lot is “sold provisionally.” We will contact the seller to see if they are willing to accept your offer or negotiate a final price.
V5 / Logbook: Refers to the vehicle registration document. We will specify in the catalogue if a V5 is present or must be applied for.
Pro Tips for New Bidders
Do Your Homework: Read the Legal Pack (if applicable) and check the VAT status. Some items are “VAT inclusive,” while others have 20% added to the final price.
Inspect Early: We always recommend attending a viewing day at our site to inspect the machinery personally before the auction begins.
Factor in Transport: Remember that you are responsible for the removal of your items. Always check the “Clearance Deadline” in the sale terms.
Need More Help?
Understanding auction terminology can make the buying and selling process much smoother. If you have any questions about how auctions work or would like guidance on entering equipment or bidding online, our team are always happy to help.
For further advice, valuations, or auction information, please get in touch with our office on 01226 247591 or explore the other guides available on our website at www.wattsauctions.co.uk
3 Barkston Road, Carlton Industrial Estate, Barnsley, S71 3HU (UK)
01226 247591