Many classic enthusiasts buy or sell their motorcycles through auction houses. Additionally, many buyers and sellers are turning to auction houses for posters, parts and memorabilia connected with classic motorcycles.

Unlike a regular dealership where a buyer would negotiate a price or a deal with a salesman, auctions have very specific rules to protect buyers and sellers alike. In addition, auction houses are (obviously) commercial enterprises and, therefore, are in business to make a profit.

It is important that first time buyers or sellers familiarize themselves with the terms and conditions of each company - fees vary between companies - before attending or consigning an item to be sold.

Buying

Buying at an auction is easy, and sometimes way too easy! Of utmost importance for the buyer is deciding before the auction on the price he or she is willing to pay for an item. Understanding the individual auction house charges is very important if an individual is on a strict budget. For example, if a buyer decides he can only afford $2000 maximum for a certain item, he must reduce his bid to allow for the auction houses charges (typically around 15% of the selling price up to the first $45,000, 10% thereafter) which in this case would be $261. Therefore, his maximum bid would be $1739.

In addition, all auction houses have specific rules on payment, and this includes cash payments where a maximum is allowed. Credit cards will typically attract a fee (normally 3%) to cover the cost of the card company’s fees.

Checks typically must be pre approved as must wire transfers, the costs of which will be charged to the buyer.

Most auction houses require buyers to preregister. At the preregistration the buyer must provide information on his/her identity and credit card details. To bid at the auction, the buyer will be given a paddle (or similar) which will have a unique number for identification during the bidding process.

It is not necessary to attend an auction in person, but all other methods of purchase (telephone bid, using an authorized representative, or absentee bids, for example) must be preapproved. Note: if you intend to bid by telephone, ensure you have at least two optional numbers available—technology tends to go wrong at the most inopportune times!

If you are successful with a bid for a specific item, you will make payment at the conclusion of the auction and remove the item. However, some buyers of classic motorcycles (collectors for example) may have bid by telephone and will need to arrange for shipping. All of the major auction houses have professional companies that specialize in transporting motorcycles. Needless to say, when registering to place telephone bids, the auction house will clarify how the machine is to be collected and, if necessary, stored before collection.

If a motorcycle is to be shipped internationally, the auction house will require the buyer to use a specialist shipping agent to arrange all the transportation and necessary documentation. It is good advice to seek out an agent well in advance of an auction to become acquainted with the requirements of shipping.

Selling

The auction house will make every endeavor to sell your item at the best price within the terms agreed. But it is important to understand these terms before consigning an item.

Of particular importance is obtaining a valuation. If a rare motorcycle is to be offered, the auction house will typically need to examine it to place a realistic value on it. However, for most classic motorcycles, the auction house can give a reasonable estimation of the likely sale price. However, the seller must be aware that the sale price will be subject to the auction houses fees and, in some circumstances, local or national taxes.

The agreed minimum sale price can be less than expected by 10% to 20% if the seller agrees to give the auctioneer discretion. Discretion is a term where a seller agrees to take less than the expected minimum. This facility is advantageous where a low turnout (due to bad weather, for example) is experienced. But again, the seller must remember that the final price he will realize will be subject to fees and taxes.

On occasion, a classic may be offered with no reserve price. Although this may seem a foolish way to sell a classic motorcycle, this type of offering can lead to more bids as people typically like to get involved in early (low) bids with the hope of snagging a bargain. However, the seller must be prepared to sell for a very low price!