Bidding · 4 minute read
The buyer's premium is part of the price
Work backwards from what you can spend, not forwards from what you bid.
The single most common mistake a first-time bidder makes is bidding their budget. Your budget is the hammer price plus the premium plus the fees plus getting the thing home.
How ours works
Eight per cent of the hammer price, with a $500 floor and a $3,500 cap. So a $9,000 car carries $720, a $4,000 car carries the $500 minimum, and a $200,000 car carries the cap rather than $16,000.
A capped premium means the percentage you actually pay falls as the price rises. That is deliberate and it is worth knowing before you decide where your ceiling is.
Then the rest
A documentation fee. Storage if you do not collect. Transport, which is always more than people expect for a vehicle that does not run.
- Decide your all-in number first.
- Subtract the premium at your expected hammer, the doc fee, and a transport estimate.
- Whatever is left is your bidding limit. Write it down before the lane opens.
The premium structure described here is sample data for a design demonstration.