How a commercial asset auction works
If you have never sold through an auction before, the process can look opaque from the outside. It is not. Most commercial asset sales in the UK now run as online timed auctions, and the steps are the same whether you are selling one machine or a whole factory. This guide walks through each stage so you know what to expect and what is expected of you.
Instruction and the asset schedule
The sale starts when you instruct us. We visit the site, walk the assets with you and agree which items are in the sale and which are not. This is also the point where we check for anything that cannot be sold: equipment on finance, items subject to retention of title, or fixtures the landlord may have a claim on.
We produce an asset schedule from that visit. It lists everything by location, with a note of make, model and condition. You sign it off before the catalogue is built. If something is missing or listed in error, that is the moment to say so.
Cataloguing and photography
Each item, or group of items, becomes a lot. We photograph every lot on site, record serial numbers and plate details where they exist, and write a description that says what the item is and any obvious faults. Descriptions are factual. We do not dress things up, because buyers who feel misled do not come back and do not pay promptly.
Lots are sold as seen. That phrase carries weight. The buyer accepts the item in the condition it is in on the day, with all faults, whether or not those faults are listed. The protections a private consumer has under the Consumer Rights Act do not apply in the same way to business to business sales, and the auction terms make that clear.
Viewing
Most sales include one or two viewing days at the site before the auction closes. Serious buyers come to look at the machines, check hours and tooling, and decide what they are willing to pay. Viewing days matter more than most sellers expect. A buyer who has stood next to a machine will bid with more confidence than one working from photographs alone.
You need to make the site safe and accessible on those days. That means clear walkways, working lights and someone available to answer questions about the equipment.
Bidding
An online timed auction runs over a set period, often a week or two, and each lot closes at a staggered time on the final day. Bidders register in advance, and bidding is open throughout. If a bid arrives in the last few minutes before a lot closes, the closing time extends. That stops last second sniping and gives everyone a fair chance to respond.
Each lot may carry a reserve, which is the lowest price at which you have agreed to sell. If bidding does not reach the reserve, the lot is not sold. Lots offered without reserve sell to the highest bidder whatever the price.
Buyer's premium and VAT
The buyer pays a buyer's premium on top of the hammer price. This is a percentage set out in the terms of sale before bidding opens. It is paid by the buyer, not by you.
VAT is charged on the buyer's premium, and on the hammer price too where the seller is VAT registered. Buyers know this and factor it into their bids.
Our charge to you as seller is a separate commission, agreed in writing before the sale. Read the agreement before you sign it, and ask about anything you do not follow.
Collection and settlement
Once the sale closes, buyers receive invoices and must pay before they collect. Collection runs over agreed days after the sale. Buyers are responsible for disconnecting, dismantling and removing their lots, and for any lifting or transport they need. Where a lot involves gas or three phase electrics, the terms require disconnection by a suitably qualified person, and for gas that means a Gas Safe registered engineer.
We manage collection days on site. We check invoices, release lots and record what has left. Anything a buyer fails to collect is dealt with under the terms of sale, which normally allow it to be resold or disposed of.
When collection is complete and buyer payments have cleared, we reconcile the sale. You receive a statement listing every lot, the hammer price, our commission and any agreed costs, and the net amount due to you. Payment follows within the period set in the agreement.
If you are thinking about a sale, the most useful thing you can do now is make a list of what you have and what is on finance. Then get in touch and we will walk the rest with you.