My favorite way to spend a Saturday is at an auction sale – especially when I’m the one doing the selling! Farm auctions are the family business, and I’m proud to be a second-generation equipment auctioneer. In my next three posts, I’d like to share some insider tips with you about buying an antique tractor at an auction sale. Whether you are a first-time auction-goer or a seasoned bidder, I hope you’ll catch on to the fun of auctions and buy your next tractor at the auction block.
Success on auction day starts before you leave your house. Eat a good breakfast, and dress for the weather. Once the sale gets going, you won’t want to leave for storms or snacks!
Arrive at the sale early enough to prepare to bid. You’ll have to park (often in inconvenient places), view the tractors, register for a bidder’s number, and learn about the terms of the sale before the first gavel falls.
Auctioneers will usually have tractors running prior to the start of the sale. You’ll want to arrive in plenty of time to hear the tractor run and thoroughly inspect it. Decide before the auction sale starts how much you are willing to spend.
Next, register for a bidder’s number. Expect to show photo ID. Your number, which will be printed on a card or paddle, will be recorded every time you place a winning bid. Because your number is attached to your account, keep track of it. Some people tuck their paddle into their chest pocket or under the band of their hat so that it is always visible to the auctioneer and the clerk.
Also, inquire about the terms of sale (cash, check, or credit card) when you register. Be prepared to pay in cash if you can – it’s a real help to the auctioneer. If you happen to be a tax-exempt customer, many auction cashiers appreciate knowing about this at check-in. Be sure to bring a copy of your certificate for their files.
Finally, find out of there is a “buyer’s premium” or not. A buyer’s premium is an extra percentage (fee for the auctioneer’s services) that is added to your total at the end of the sale. When combined with sales tax, this can add a hefty amount to your bill! Before the sale starts, do the math to convert the amount you want to pay into the appropriate bid. You can even write down some corresponding figures onto a notecard for quick reference during the sale if you need to. For example – a 15% buyer’s premium and a 5% sales tax would mean that:
A $1,000 bid will cost you… $1,200
A $5,000 bid will cost you… $6,000
A $7,000 bid will cost you… $8,400
A $20,000 bid will cost you… $24,000.
Before the auction starts, translate the top amount you are willing to spend into what you should bid (less buyer’s premium and sales tax) in order to avoid making a bid you later regret.
Auctioneers and bidders tend to have very strong opinions about buyers’ premiums. The important thing is to make sure you understand the true price you will be paying before you raise your paddle to make a bid.
Buying an antique tractor at an auction sale is fun and exciting! Now that you are prepared to bid, check in next week for the inside scoop on the auctioneer’s chant and the special terms you can expect to hear.