Reply To: Cars at Hershey auctioned by RM

Alan,

Buyer’s premiums are almost always paid to the auction house. They are calculated as a percentage of the final hammer price and can range from 5 to 15 percent depending on the auction.

If my winning bid on an item is $100,000 and the buyers premium is 10% I will have to pay the auction house $110,000 plus taxes.

It’s an old trick of the auction game to get the bidders to spend more than they think they are spending.

Bill