Difference Between A Sale And An Auction
I saw an ad in the local paper for a liquidation auction. I went to it yesterday. The ad was written in a way that it appeared there would be a load of electrical equipment going cheaply, large TVs, iPads, cameras etc. When I got there there was about 10 or so big TVs, maybe 20 laptops, a few cameras and various bits of Apple gear. There was also a load of sports memorabilia and home furnishings along with wine and some clothing. I am presuming they headline the electrical gear to get the crowds in (the place was packed) and then hope to sell off the other stuff. They sold nearly everything when I was there. All well and good, however, the way they went about the auction was alien to me.
I only have experience of property auctions where the auctioneer keeps going till the last bidder standing no matter how high they bid. Here, he would take the bid up then seemingly at random bang the gavel and sell it. On some occasions he would also say you have bid high enough and just close it with whoever he took the last bid from. Then he would announce there was multiple lots and did anyone else want one at that price. People would then show their bidding cards. On several occasions, after bidding had finished he would speak to the 'auction manager' who would tell him to cut the final price in half, throw in something free and then say there were multiple lots and who wanted some of this great deal.
So what I wanted to know is, have the people here actually bought something at auction? Or have they purchased via a sale? Or something else? And what are their rights etc?
As an aside, some people clearly got a case of auction fever. Some things, once you added auctioneer's commission and VAT (33.5% total) where at what you buy them for retail. The Apple stuff especially, people just bid and bid and bid.
I think what I'm asking is what are their rights should something go wrong? As many didn't actually win the products at auction, the auctioneer simply asked, do you want this product at this price and they said yes. Is that a normal sale and covered by the normal regulations or would it still be classed as an auction, bought as seen?
Look at it locially - an auction is where they sell old, unwanted gear, whether it be antiques, cars, houses etc. and it boils down to each auction house. Before you go and bid you must read their own rules (and suss the place out) and regulations about minimum bids, returns... each auction house is very different, including the fees.
Usually you are bidding on a product as seen. If it frops to pieces after you walk out then it is your problem. But, it will slightly differ according to where you bid.
To answer your question: No, they have their guidlines.
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An auction is how you state, bidders bid for an item at £ increments decided upon by the auctioneer until one person is left having bid the highest price. The buyer then pays that price plus commision to the auction house. The seller then receives that money less a % paid to the auction house for selling their goods
A liquidation sale must differ (I have no personal experience) - the object is still to sell the goods so that the liquidators get the funds to wind up the company they represent, pay off the creditors and still make money themselves. Selling to the highest bidder would clearly achieve their objectives.
Perhaps at the sale you attended, a maximum price was decided upon pre auction and sold to whoever was willing to pay that price ??