AUCTIONEERS
AUCTIONEERS
COMMENT
MARKET
Leominster 4×4 sales
AUCTIONEER
Bob Chadwick
(Russell Baldwin and Bright)
FOUR-wheel-drive vehicles are still essential to an industry struggling to survive in a Brussels-led Europe where the need to reduce costs is vital, not optional. Perhaps, then, farmers bedevilled by political, economic and health issues, should be taking a closer look at what 4x4s are available under the hammer. Savings on showroom prices can be sizeable.
It is not just farming that is under pressure. Times are hard in most sectors and the need to sustain cashflow is prompting many individuals and organisations to part with vehicles which in better days would be worked to the limit. Miserly tax concessions on some new purchases enhance further the benefit of buying second-hand.
At Leominster, fortnightly entries – usually between 250-300 vehicles – range from basic workhorse vehicles to the latest luxury marques. For example, recent entries have included a G-reg Subaru MV pick-up with canopy and 91,000 miles on the clock – ideal for trundling across fields – which sold for £200 plus VAT. Or, depending on your profits, you could have driven home in a M-reg 4×4 Porsche 911 Carrera 3.6 with all the gadgets and fully documented 28,000 miles for £39,300, less than half its original price tag.
Between the extremes
In between these extremes there are a host of Land Rover, Toyota, Mitsubushi Isuzu and other 4×4 cars and commercials. Many from blue chip organisations in both the public and private sectors, often with service records which give some idea of how they have been maintained.
Whether VAT is payable will depend on the type of vehicle and status of the vendor. The sale price for some vehicles includes an element of VAT, with others the VAT is added to the sale price, and there are also vehicles which do not attract VAT at all. It is important to understand these differences which will be clearly defined and explained by the auctioneers.
Other costs will also add to the hammer price. For vehicles, some auctions chose not to levy a buyers premium, but require an indemnity fee of £40-£130 to be paid, depending on the value of the vehicle.
Claims are rare
This guarantees your right as a buyer to reclaim the purchase cost from the auctioneer if a problem over ownership and certain other aspects of status vehicle arise. Claims are rare, but it is an insurance policy if nothing else.
An idea of what savings can be made at auction is shown in the table below.
But what about those looking to sell vehicles? Aside from a flat fee (typically £15) for administration and advertising, there is a no sale/no fee arrangement. Reserves can be set on a vehicle and where possible it is worth consulting the auctioneer as to what it should be.
If you sell a vehicle expect to be charged commission (currently between £30-£350) linked to the sale price. All these costs are subject to VAT regardless of the vendors status.
Payment for vehicles sold is normally received within five working days; that is, of course, providing your postman doesnt have the flu.
Someone may have once said "theres no such thing as a bargain", but I am not convinced. When all is said and done, the value is in the eye of the beholder. *
Recent second-hand 4×4 sales
Year/reg Vehicle £ new £ auction
1998 R Land Rover Defender 90 tdi hard top 14,672 9800+VAT
27,000 miles tbar
1997 R Isuzu trooper td van FSH, one owner 15,502 9800+VAT
1997 R Toyota Landcruiser Amazon 4.2 td 35,875 19,500
40,000 miles air con ABS
1996 P Discovery 5dr tdi 69,000 miles tbar twin 22,825 10,600 inc VAT
sroofs