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Understanding Car Auction's Terminology : A Beginner's Guide
Yungming Wong | 18 Nov, 2024
Navigating the world of car auctions can seem daunting to a newcomer. At AstaGuru, we aim to make this journey seamless and enjoyable, whether you're exploring vintage and classic cars or broadening your collection. This guide demystifies essential auction terms and provides an overview of AstaGuru's online car auction process, equipping you with the knowledge to participate confidently and effectively.
Key Terminology
1. Lot
In the lexicon of auctions, a "lot" refers to the item—or items—available for bidding. At AstaGuru, each lot is meticulously curated and assigned a unique identification number for seamless tracking, ensuring a smooth and organised experience for all participants.
2. Reserve Price
The reserve price is the minimum amount the seller is willing to accept for a lot. Should bidding fail to reach this threshold, the lot may remain unsold. Knowing this figure is crucial as it informs your bidding strategy.
3. Opening Bid
This is the starting price for a lot, typically set below the reserve price to encourage initial participation. Familiarising yourself with the opening bid helps gauge the level of competition to expect.
4. Bid Increment
A bid increment is the minimum amount required to outbid the current highest offer. This ensures a structured, competitive bidding process. Understanding increments allows you to strategize effectively.
5. Absentee/Proxy Bid
Can't attend the auction in real time? A proxy bid lets you set your maximum bid in advance. AstaGuru's system will automatically place bids on your behalf, up to your specified limit, ensuring convenience without missing out on your desired lot.
6. Telephone Bidding
For those who prefer a personal touch, AstaGuru offers the option to bid over the phone. Our team will guide you through the process live, ensuring you remain engaged no matter where you are.
7. Hammer Price
The hammer price represents the highest accepted bid, determining the final sale price of the lot (excluding additional charges). This is the figure that signifies the winning bid.
8. Buyer’s Premium
Over and above the hammer price, a buyer's premium is a standard fee charged by the auction house. This percentage supports the expertise and operational excellence that AstaGuru is known for and should be factored into your budget.
9. Condition Report
A detailed condition report provides insights into the mechanical state, bodywork, and provenance of each car. This document is indispensable in making informed bidding decisions.
10. Auction Catalogue
AstaGuru’s auction catalogue is your roadmap to the auction. Featuring high-quality images and comprehensive descriptions of each lot, it allows you to plan your bids and explore every detail from the comfort of your home.
How To Bid In Car Auction at AstaGuru Auctions
Participating in AstaGuru's online car auction is straightforward:
1. Create an Account
Register on our website by completing the simple signup process - here
2. Verify Registration
Ensure your registration is completed at least four business days prior to the auction to allow time for verification.
3. Provide Documentation
Submit the following documents:
- Government-issued identity and residence proof
- PAN and Aadhaar details (or equivalent for international clients)
4. Pay the Security Deposit
This refundable deposit determines your bidding limit. For instance, a deposit of INR 5 lakhs allows bidding up to INR 50 lakhs.
5. Place Your Bid
Once live, explore the available lots, select your preferred one, and confirm your bid. Our platform is intuitive, ensuring you stay informed and engaged throughout.
6. Monitor and Adjust
If outbid, raise your offer by the required increment to stay in the race. For bids above INR 5 crores, the increment reduces to 5%, ensuring flexibility in high-value auctions.
7. Final Call and Payment
When the auction ends, the winning bidder receives an invoice that includes the hammer price and buyer's premium. Payments are due within seven business days to finalise your purchase.
Conclusion
Stepping into the realm of car auctions is an exhilarating experience, especially when guided by a trusted partner like AstaGuru. Armed with a clear understanding of auction terminology and a streamlined process, you can confidently navigate the world of classic cars and find the perfect addition to your collection.
Here’s to your next winning bid with AstaGuru—where passion meets precision. Happy bidding!

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