If you are new to machinery auctions, some of the terminology used can seem unfamiliar at first. We have put together this guide to explain common auction terms in clear, straightforward language to help both buyers and sellers understand the process, and buy or sell with confidence.
1. The Basics:
Auction:
An auction is a method of selling items where buyers place competing bids, with the item selling to the highest bidder. These can be held in different formats such as in-person live bidding, live stream online bidding, and timed online (with a specified ending time)
Catalogue:
The catalogue contains details of the lots such as descriptions, photographs, and videos, and is usually updated regularly leading up to the auction.
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.
Guide Price / Estimate:
An estimate or guide price indicates the expected selling range of a lot, however, they are provided very much as a guide only and are not a guarantee of the final selling price.
Reserve:
A reserve price is the minimum amount a seller is willing to accept for a lot. However, sometimes when the reserve is not met, the Auctioneer will sell the lot ‘provisionally’ and ring the vendor to ask if they want to accept the bid (subject bid).
Subject bid:
A subject bid is where a lot hasn’t quite met reserve but is sold to the highest bidder, subject to vendors approval. The Auctioneer will ring the vendor and ask if they want to accept the bid and then let the highest bidder know the outcome.
No Reserve:
If an item has no reserve, it will sell to the highest bidder regardless of price.
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.
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.
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.
2. Condition & Descriptions
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.
3. 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).
Pro Tips for New Bidders
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