Logo
understanding car auctions terminology a beginners guide

Blogs

Understanding Car Auction's Terminology : A Beginner's Guide

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! 

Your Guide To Vintage & Classic Cars

Your Guide To Vintage & Classic Cars

26 May, 2020

Evolution of Automotive Design

Evolution of Automotive Design

21 Nov, 2024

The Art Of Collecting: Why Vintage Cars Are Timeless

The Art Of Collecting: Why Vintage Cars Are Timeless

15 Nov, 2024

The Advantages Of Online Vintage Car Auctions : A New Era For Classic Car Enthusiasts

The Advantages Of Online Vintage Car Auctions : A New Era For Classic Car Enthusiasts

12 Nov, 2024

    Logo

    KNOW MORE


    SERVICES


    ABOUT


    FOLLOW US ON

    DOWNLOAD THE APP

    gplay
    appstore