Budget and price are always going to be amongst your top priorities when buying a salvage car, whether it’s from us or another online vehicle auction. That will naturally lead you onto one of the most pressing questions - how much are auction fees when you buy a car?
To be honest, that depends. There are a number of additional fees you might have to pay in addition to the purchase price, but exactly what those are, and how expensive they’ll be, comes down to several factors. These include where you’re getting your car, which auction house or website you’re using, and what their policies are. Apart from a one-off fee of £20 for new private buyers, we don’t charge any auction fees here at RAW2K.
The deposit
While we don’t ask for a deposit before you start bidding here at RAW2K, you may well be asked for one if you’re buying from somewhere else, especially from some of the biggest auction houses like Copart or Manheim. To be honest the actual amount is down to the discretion of the auction house or website operator, but if you’re a new, private buyer at one of these big auction houses, be prepared to lay down a deposit of up to £500.
Now, this money isn’t gone forever. In fact, the deposit will be knocked off the total of any vehicle you buy. If you don’t buy one, they’ll simply refund your deposit after the auction. If you decide to pay for your auction car on a different card, they’ll similarly refund your deposit so that you can pay in full by an alternative method. (This may seem like an unnecessary hassle, but it’s actually to that they comply with money laundering laws.)
How much are buyer’s fees for auction houses?
Buyers fees are on a sliding scale - it tends to depend on the value of the vehicle you’re buying, as well as the discretion of the auction house. If you’re buying at a physical auction house, then you’ll generally be able to ask for this information at reception, or from officials in the actual auction halls.
You may well find you’ll have to pay VAT too, which is often charged at about 20% of the vehicle’s total value. Some auction houses also offer additional checks for extra peace of mind, which can range from anything between £20 to £40 for each one. If you’re buying something other than a salvage car (for example, a specialised recovery vehicle), you may also be liable for additional buyer’s fees. Most places charge around £20 to £40, so be prepared for something in that ballpark.
How much are buyer’s fees when buying online?
Online fees for buying an auction car online will often be anywhere between £30 to £60 per vehicle. (Again, there may be some exceptions to this.) This will often be exclusive of VAT too, so you’ll also have to factor that in.
If you intend to buy a salvage car at one of the online car auctions, make sure you prioritise checking for any information about buyer’s fees. It will be normally freely available on the FAQ section. If it’s not, it’s best to hunt down the details before you place any bids! Don’t forget, too that the fees can be changed at the discretion of the organisation in charge of the auction, whether that’s a national company or a single individual.
Here at RAW2K, we don’t levy any fees on businesses to buy a car. For individuals, the buyer’s fees are only £20 on the first car they buy, and after that there are no buyer’s fees for any subsequent sales.
How are buyer’s fees affected by your method of payment?
How you pay for your auction car also makes a difference. If you pay your deposit or purchase price using a credit card, you’ll be charged a small transactional fee, often about 3.5% plus VAT. If you’re paying using a debit card or bank transfer, on the other hand, there will be no transaction fees at all. Some places will accept payment in cash, but this is often subject to a fee too, if only a minor one. Cash handling fees generally amount to something in the region of 1.25% plus VAT.
How much are storage fees for salvage cars?
The normal rate is somewhere between £10 and £20 daily. However, most places will give you at least three days to pick up your auction car before they start to apply any storage fees. They tend to be most expensive in the bigger UK cities, such as London, Birmingham, Manchester or Bristol.
Here at RAW2K, we give you 5 working days to collect your vehicle, after which the storage yard will charge £15 +VAT per day. You can find out the full details on our FAQs page.
Some final tips for dealing with auction fees
As we touched upon above, whether you’re buying at a large auction house or at a more modest online vehicle auction, it’s always best to prioritise finding out what the auction fees are, so that you don’t have to deal with any nasty surprises when it comes to payment. You can read our full Terms and Conditions and a range of other useful information in our Help Centre. Or if you’re already good to go, you can start bidding on a wide range of salvage vehicles right here in our online vehicle auctions. We’ve got models from leading global manufacturers such as Vauxhall, Audi, BMW and Nissan - so why not take a look around, and see what you can find?
