Cars sold at auction have charges added to the purchase price. It pays to know what they are before attending any auction.

Indemnity fees are also known as “buyers’ premium” and are charged on all cars sold at auctions. Cited as either absolute amounts or percentage of the winning bid, indemnity fees are for the protection or insurance against any loss the auctioneer may suffer in cases where the Wholesale Car Covers GMC Sierra K1500 SLE Chippewa Falls WI 54729 car is on the stolen list, has an outstanding loan balance, declared as an insurance “total loss”, etc.

Fees usually vary depending on the auction house although the other typical fees chargeable to buyers may include registration fee to join the auction and receive the bidder’s credentials, buyer’s fee, administrative fee, fleet/lease fee if applicable, TeleCheck charges for check payments, and sales tax.

The bigger auction companies built their own GMC Sierra K1500 SLE Chippewa Falls WI 54729 auction centers to accommodate the many vehicles bought and sold through them. As there is usually a sizeable staff complement to provide the different services to both buyers and sellers, total overhead costs can be substantial.

And just like any other business, the auctioneer’s overhead costs are passed on to both buyers and sellers in terms of fees. Any difference between their gross receipts and actual expenditures will be Television – An Overview GMC Sierra K1500 SLE Chippewa Falls WI 54729 their profits.

The add-on fees may seem a little high but they should not discourage car buyers from checking out auction places. Auctions remain to be a great source for used vehicles at significantly low prices. There are many choices available and even if you do not leave with your first choice, you can always get the next best thing.

As a prospective car buyer, you also have the GMC Sierra K1500 SLE Chippewa Falls WI 54729 option of attending independent auctions by the smaller companies. Auction fees may be a little less but your choices can be limited.

If you are interested in these smaller auctions, you can find them listed in your local yellow pages. It would be a good idea to phone the auction center before the date of the auction. Ask for their charges and be clear as to the details or GMC Sierra K1500 SLE Chippewa Falls WI 54729 breakdown of these charges. This way you can avoid being surprised when your bid wins.

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