For those seeking opportunities, whether to invest, resell, or simply acquire a car for a fair and honest price, vehicle auctions are excellent alternatives to consider. There are currently a large number of offers in this type of business, but before submitting a bid and hoping it's accepted, it's necessary to understand all the fees involved. car auction. 

Paying attention only to the bid amount is a very common mistake that beginners in the world of auctions make. 

Neglecting the fees leads to only one result: financial loss, which is the exact opposite of what is expected when participating in an auction. 

Therefore, paying attention to potential expenses after an auction can be the deciding factor between making or losing money. 

As we've said a few times, our goal here is always to help you do the best deal It's possible that vehicles are involved! 

So, in today's article, we're going to show you what the fees are for a car auction and how to keep an eye on any expenses that could minimize your profit or savings! 

So, let's get up to speed on these fees to ensure a successful and profitable purchase? 

So, off we go! 

The supply of vehicles in judicial and extrajudicial auctions is increasing, especially now during times of pandemic and economic slowdown. 

This happens because many people are unable to keep up with their car loan payments, which leads to the vehicle being seized and eventually auctioned off. 

But as we were saying, besides winning the bid, if you're looking for success in auctions, it's essential that you read the auction terms and conditions very carefully. 

As we have mentioned on several occasions, the auction notice is the most important document in an auction, as it contains all the information about the vehicle, such as:

Among other very important information, the auction notice is where you can find all the fees for a car auction. 

Below are the most common costs you'll need to pay if you win a vehicle at auction. 

This is the first of the car auction fees: the auctioneer's commission. 

By decree, 5% of the value of the property is allocated as the auctioneer's commission. 

In addition, an administrative fee is usually charged which, added to this commission, should not exceed 6% of the auction value. 

Any other fees associated with an auction must be included in the auction notice. 

Even at auctions, Brazilian car buyers can't escape taxes. 

Unfortunately, some taxes will be added to the winning bidder's expenses as part of the property's value. 

For vehicles, there is the cost of the Property Transfer Tax – ITBI. 

Many auctions already include these types of expenses, but not all. Therefore, it's important to read the entire auction notice and, when necessary, clarify any doubts directly with the auctioneer. 

Another tax that may need to be paid when talking about vehicle auctions is the IPVA (Vehicle Property Tax), since many vehicles can be impounded for non-payment of this infamous and much-maligned tax. 

Furthermore, for both real estate and vehicles, in the case of profit from the resale of the asset, a percentage related to the tax is applied to the value. 

There's no way around it. The lion will get you from somewhere. 

In addition to the usual car auction fees, other costs may arise for the buyer shortly after the auction. 

Although these are not strictly taxes or fees, it is important to be aware of these costs, as these expenses reduce the savings or profit of the investment. 

Therefore, before placing a bid, you need to carefully consider the following expenses:

In simple and straightforward terms, succeeding in an auction means one rather obvious thing:

Buy low and sell for high priceSimple as that. 

Whether for economic reasons or profit on resale, an auction only offers a real advantage if the winning bidder pays less than they would through a traditional purchase. 

However, it's important to be careful not to make any mistakes. 

Failing to carefully calculate car auction fees and any costs incurred after the auction can result in the opposite of what you want: financial loss. 

Therefore, in addition to calculating all auction fees, taxes, and additional expenses, consider the following measures to ensure savings on the purchase and profit on the resale:

If you ask us: Buying a car at auction Is it a good business idea if you're thinking about making a profit?

We'll answer you: Yes, absolutely. But only if you pay attention and don't let your emotions get the better of you. 

Unfortunately, there are still many buyers who plan everything in advance, are aware of the fees, and then, when it comes time for the bidding, end up getting carried away by emotion and paying more than they should for the vehicle, ultimately saving less. 

Being cold and calculating, and not letting emotions get the better of you when participating in an auction, is just as important as knowing all the fees. 

This article shows you that car auction fees aren't high, but the total cost of the vehicle after the auction can change, affecting the economy or profit margin.

Now that you know all about the subject, how about discovering how to participate in an auction in a practical way and getting to know some auction houses with very attractive rates?

Interested?

So, to continue with the discussion, all you need to do is click on the link below!