Tractor auctions

Harvey 2 · Mar 15, 2013

Here in southern Indiana most auctioners don't charge a buyers premium. In Kentucky a lot of the auctioners charge a 10% buyers premium.
I won't go to any of their sales, as I think its a way to gouge the public for more money.
Sometimes the local auctioners charge sales tax on non farm items.
What do most auctioneers in other states do?
Indiana doesn't have a sales tax on farm machinery.

Charlie M · Mar 15, 2013

In western NY most guys are charging the premium - I think its 10%. I haven't been to an auction for a while now. NY requires sales tax to any non farmers no matter what you buy. In our county its 8%. I don't know what they do for non farm items as I have never bought any at an auction. Stuff adds up pretty fast if you aren't thinking about it during the bidding.

Mowdigger · Mar 15, 2013

It's hit and miss here in Illinois. I agree, I will not go to the auctions that charge it. Why should I pay extra to purchase an item.

jm. · Mar 15, 2013

Byers premium is pretty much the norm here in Tennessee. Every one pays it so when you bid you just have to bid less knowing that the final cost is bid plus 10%. I get a kick out of auction folks , if you go to an auction where there are 600 folks and you are the winning bidder. What it means you were willing to pay more than 599 other folks. Can,t see how you can claim to be the WINNER. Do a few auctions to see and meet folks but hard to buy anything for resale at auctions;.Ever now find a bargain but really hard to do at auctions.

farmer boy · Mar 15, 2013

I won't go to an auction with buyers premium on bigger items. It doesn't bother me so much on small items, because it does cost more to sell the small items, and it's not a large amount of money. I can't blame them for charging sales tax on non farm items. Not charging it could get them in alot of trouble. If you shouldn't have been charged it, then claim it with your taxes.

rrlund · Mar 15, 2013

Mostly no buyer premiums in Michigan. I went to the stockyard to a consignment sale a few years ago and they charged me sales tax though. When I caught it on the reciept,I went back in. They had me fill out a tax exempt form and refunded it to me.

showcrop · Mar 15, 2013

I haven't seen buyers premiums here in NH, though I haven't been to a sale in awhile. I would have no problem paying it though, I would just factor it in as I am bidding. Having been a small business operator for 25 years I learned that companies provide services, and they can't pay their bills and stay in business if they don't charge for and collect for what they do. You guys are saying that the poor guy who is flat busted and wants only to pay off his creditors and maybe clear $2,000 that he has to live on for the next twenty years should foot the whole bill for the sale?

ricb · Mar 15, 2013

Most of the auctionieers selling farm equipment in ny charge 10% for any thing less than $1,000. All the non farm auctioneers charge 10% to the buyer and 5-15% to the seller

Dan in Ohio · Mar 15, 2013

Most auctions in Ohio there is a 3-5% premium if you are using plastic, none for cash or check.

J.Wondergem · Mar 15, 2013

I usually check before I go to an auction to see if there is a buyers premium, if there is, I don"t go, if I find out after I get there, I don"t buy anything. It"s their sale, and I guess they want me to come, but there isn"t anything I can"t live without.

IrvIA · Mar 15, 2013

It's not a buyers premium, it's a buyers penalty. I won't pay for the priviledge of going and spending my money. My 2c worth.
Irv

oldtanker · Mar 15, 2013

I fail to see how you can consider a buyers premium justified. Person has stuff to sell and wants that money now, maybe isn't interested in taking the effort to sell it themselves. They contact an auctioneer who charges them for his services. If he isn't charging enough to cover cost and make a profit it's his problem not mine. Them having an auction isn't something I have to attend and I'm darn sure not supporting the auctioneer when he's just greedy.

Rick

tomNE · Mar 16, 2013

i've been to auctions both ways....no problem for me, i just adjust my bidding!

larryanderson · Mar 16, 2013

I know that Barret Jackson Auctions charges 10% &8% to buyer and seller.I know Meccum is getting into tractors but dont know what they do.Bottom line is just fiqure it in your final bidding price.Just dont see it in Iowa.Usually consignment sales charge 7% on items over $1K and 10%under.There is usually a set predetermined fiqure on big ticket items that draw people but not always.

Keith Molden · Mar 16, 2013

Here in Ohio we have to charge sales tax if we do 2 or more auctions in the same location in a years time. It doesn't matter if it's farm related or not, that's the law. Some charge buyers premium up to 10% and some charge buyers premium for plastic because of the cost involved. I still don't accept plastic (just too darned expensive). I still charge 15% plus advertising, I and my crew set up the sale and I pay my help out of the 15% I make. It's just like farming, the BTO's seem to make the money and have the angles while us small timers just barely make it LOL. I do auctions because I enjoy doing them, although I haven't done one in awhile as I'm working away from home. I do want to do one of my own this summer, need to eliminate some of my tractors and equipment. Keith

DoubleR · Mar 16, 2013

I always make sure of the terms when I sign in. If there's a buyers premium I usually don't buy. I also make it clear that anything I buy will be farm use and tax except. I may have to fill out a form for my tax except status if the auctioneer doesn't already have one on file. Most farm sales in Michigan, where I live, don't have sales tax or buyer premiums. It normally the consignment sales where you have to watch.
I was at a farm sale a few years ago here where they did have a 10% buyers premium. It was a popular Mi. Auction Co. too that normally never has a B.P. They sold some 100,000 dollar plus pieces of equipment. I though there was going to be a riot afterwords when a couple of farmers found out there bill was over 10,000 dollars more than they thought it was going to be. I know I sure as heck would have checked the terms before I spent that kind of money, not that I would ever have that kind of money to spend.

BarryfromIA · Mar 16, 2013

Here in northwest Iowa we have not seen a buyers premium yet. Stabe Realty and Auction has a big consignment sale coming March 23rd that is well attended and they move a lot of stuff and the seller pays. Been on both sides and no surprises.

oleclint · Mar 16, 2013

Several yrs ago , A bunch of auctioners around here started charging a buyers premium. The few that did not , seemed to pick up more sales.
A few yrs.latter most auctioners dropped the 10% B P. They must of figured out that people were not happy about that idea.
I will not go to an auction that charges a BP. clint

Traditional Farmer · Mar 16, 2013

I like buyers premiums keeps lots of bidders away
so even with the premium things usually sell for less total.

Anonymous-0 · Mar 16, 2013

DAMMM them BTO's!!!!!!!!!!!!!!!!!

johnlobb · Mar 16, 2013

Lots of good answers. I have always called this a "buyers punishment". The word premium is way to pretty for what it is.

johnlobb · Mar 16, 2013

Lots of good answers. I have always called this a "buyers punishment". The word premium is way too pretty for what it is.

W_B · Mar 19, 2013

Not sure about tractor auctions but in the antique world about 15 or so years ago the buyers premium was working its way into auctions. Most auctioneers I knew didn't want to charge it. I remember Tom Porter, owner then of Garth's Auctions, standing up at one of the regular sales and saying Garth's has never and never will charge a buyer's premium. But when several of them started losing large and nice collections to those that charged a reduce commission to consignors and a buyers premium they had to come around or risk loosing their business. It was less than a year later that Garth's was having some of their early American auctions with a buyer's premium. Just a matter of economics. Would you rather pay the auctioneer a 10% charge as seller or 20%? Now that might effect who goes and what I finally get for any one item, don't believe there's anything other than anecdotal evidence on that issue.

As a buyer you have to just factor that in to your final maximum bid on an item. You do that, don't you, before you bid anyway? If I'm looking at a tractor at a sale with 10% buyer's prem. that I'm willing to go to $10,000 on, my final bid will be about $9,000.

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