| Cars sold at auction have charges added to the | | | | And just like any other business, the auctioneer's |
| purchase price. It pays to know what they are before | | | | overhead costs are passed on to both buyers and |
| attending any auction. | | | | sellers in terms of fees. Any difference between their |
| Indemnity fees are also known as "buyers' premium" | | | | gross receipts and actual expenditures will be their |
| and are charged on all cars sold at auctions. Cited as | | | | profits. |
| either absolute amounts or percentage of the winning | | | | The add-on fees may seem a little high but they |
| bid, indemnity fees are for the protection or insurance | | | | should not discourage car buyers from checking out |
| against any loss the auctioneer may suffer in cases | | | | auction places. Auctions remain to be a great source |
| where the car is on the stolen list, has an outstanding | | | | for used vehicles at significantly low prices. There are |
| loan balance, declared as an insurance "total loss", etc. | | | | many choices available and even if you do not leave |
| Fees usually vary depending on the auction house | | | | with your first choice, you can always get the next |
| although the other typical fees chargeable to buyers | | | | best thing. |
| may include registration fee to join the auction and | | | | As a prospective car buyer, you also have the option |
| receive the bidder's credentials, buyer's fee, | | | | of attending independent auctions by the smaller |
| administrative fee, fleet/lease fee if applicable, | | | | companies. Auction fees may be a little less but your |
| TeleCheck charges for check payments, and sales | | | | choices can be limited. |
| tax. | | | | If you are interested in these smaller auctions, you can |
| The bigger auction companies built their own auction | | | | find them listed in your local yellow pages. It would be a |
| centers to accommodate the many vehicles bought | | | | good idea to phone the auction center before the date |
| and sold through them. As there is usually a sizeable | | | | of the auction. Ask for their charges and be clear as |
| staff complement to provide the different services to | | | | to the details or breakdown of these charges. This |
| both buyers and sellers, total overhead costs can be | | | | way you can avoid being surprised when your bid |
| substantial. | | | | wins. |