Auction fees

[Flygas]

I often buy guns through the various auction houses but hadn’t bought anything from Rock Island Auctions in quite a few years. Their descriptions were always vague and with each purchase I ended up disappointed. I decided to give them another try in the October 3-6 event but just dipped my toe in the water, only buying one gun at a hammer price of $850. Today I received my invoice— Hammer price $850, Buyer’s premium 148.75, credit card fee 38.70, shipping 46.00, insurance 9.99, Live Bidding Fee (Proxibid) 51.00, sales tax (Joplin, Missouri) 99.84, for a total of $1,244.28. So $394.28 above the hammer price. Yes, I’m definitely done buying from them.

 

[Bald1]

WOW!!!!! just WOW. That is crazy. That’s almost 50% above sale price.

 

[444 Magnum]

If you're going to buy remotely from an auction house, you should phone bid and pay by check. It helps, but the fees still ad up.

Why did you have to pay sales tax if you're in another state?

Also, I quit buying from RIA because their starting prices make it impossible to get a good deal unless they happen to underestimate an item (which is rare).

Shipping is through the roof with everyone. Pistols (second day air) are expensive.

 

[ken158]

After auction fees have gotten so high that many potential buyers have stopped using them. I certainly have. This is a ripe opportunity for a start up auction company with modest fees. There are good shipping discounts for business customers like SMG is doing and they still make money.

 

[shown50]

I often buy guns through the various auction houses but hadn’t bought anything from Rock Island Auctions in quite a few years. Their descriptions were always vague and with each purchase I ended up disappointed. I decided to give them another try in the October 3-6 event but just dipped my toe in the water, only buying one gun at a hammer price of $850. Today I received my invoice— Hammer price $850, Buyer’s premium 148.75, credit card fee 38.70, shipping 46.00, insurance 9.99, Live Bidding Fee (Proxibid) 51.00, sales tax (Joplin, Missouri) 99.84, for a total of $1,244.28. So $394.28 above the hammer price. Yes, I’m definitely done buying from them.

Wow! I almost bid in the same auction for a group of Safety Hammerless guns. I’m really glad I didn’t now, those fees are ridiculous. I can understand the buyers premium but the live bidding fee is a joke. Don’t let the extra cost give you a sour feeling towards the gun!

 

[gdogs]

The last time (probably last time ever) buying a gun through an auction house, I got hit with a $100 shipping charge. That said, an additional $400 on top of an $850 gun would have me telling them to keep it.

 

[Flygas]

Why did you have to pay sales tax if you're in another .

Cut and pasted from the invoice—
Rock Island Auction Company is a Marketplace Facilitator (as defined in the applicable regulations for each state) for purposes of collecting and submitting sales tax for each applicable state.

This is becoming the norm. States have realized the enormous amounts spent on mail order, etc. and they’re no longer willing to lose out on that revenue.

 

[JH1951]

For the reasons above I read the terms carefully, and "back into" an auction calculating all fees prior to placing a bid. This method helps eliminate buyer's remorse, but it quite often eliminates me as a contender, too. For those that complain about GB fees, check out what the large auction houses charge.

 

[444 Magnum]

Rock Island Auction Company is a Marketplace Facilitator (as defined in the applicable regulations for each state) for purposes of collecting and submitting sales tax for each applicable state.

I wasn't aware of this ^^. Not all auction houses are doing it. Makes me wonder why RIA chooses to...unless it's because they're in two states now (Illinois and Texas)? or is Illinois requiring it?

I imagine 1099's are on the horizon as well.

 

[Krogen]

I often buy guns through the various auction houses but hadn’t bought anything from Rock Island Auctions in quite a few years. Their descriptions were always vague and with each purchase I ended up disappointed. I decided to give them another try in the October 3-6 event but just dipped my toe in the water, only buying one gun at a hammer price of $850. Today I received my invoice— Hammer price $850, Buyer’s premium 148.75, credit card fee 38.70, shipping 46.00, insurance 9.99, Live Bidding Fee (Proxibid) 51.00, sales tax (Joplin, Missouri) 99.84, for a total of $1,244.28. So $394.28 above the hammer price. Yes, I’m definitely done buying from them.

I understand the pain. What looks like a deal at the hammer price quickly looses its luster! However, I'd like to comment on the fee breakdown.

* You can't get past the buyer's premium. It may vary with different houses, but they gotcha!

* Credit card fee is offset by whatever kickback you get from the card company. I get 2% from Citi. Or you could pay by check.

* Shipping and insurance you're stuck with. Any internet purchase is expensive to ship unless you buy from Bud's or the like. Shipping cost, although less, would still be in the total somehow.

* Proxibid? Don't use it!

* Sales tax. If your state has sales tax you're liable for it at the point of sale or the FFL. Some states are less stringent than others. My FFL charges sales tax unless you can show that you paid it to the seller. The days of tax-free internet sales are gone in this state.

I guess you just have to balance the desirability of something at an auction house with the total cost of the transaction. Some items are hard to find and when they show up, ya gotta pay!

 

[JH1951]

Let me tell you how it will be
There's one for you, nineteen for me

'Cause I'm the taxman
Yeah, I'm the taxman

Should five percent appear too small
Be thankful, I don't take it all

'Cause I'm the taxman
Yeah, I'm the taxman

(If you drive a car, car) I'll tax the street
(If you try to sit, sit) I'll tax your seat
(If you get too cold, cold) I'll tax the heat
(If you take a walk, walk) I'll tax your feet
Taxman!

 

[glowe]

Everything you were charged for is posted on the bidding site. Actually, Rock Island has one of the lowest buyer premium IF you buy on the RIA bidding platform @ 17.5% online buyers premium by paying with check or money order. You can save an additional 1% bidding by phone. Every auctioneer charges state sales tax, credit card fee, shipping, and buyers premium. If you buy on Proxibid you pay 27% buyer premium for RIA auctions.

Bottom line is that potential buyers should first look at the auction site to see if they offer their own bidding platforms and plan to pay by USPS Money Order of check. Most of all, know up front what all these charges actually mean and how much total premium you will pay.

RIA is nowhere near the highest buyer premium site on Proxibid. Morphy Auctions charged 40% BP not long ago.

 

[diyj98]

I know two local auction companies that charge from 15.5% to 19% buyer's premium. Then sales tax. And if you're not or can't pick up in person, one charges handling fees in addition to postage. The other uses a third party shipping company to pack the items, and they really burn you up on cost.

 

[murphydog]

On a related note, simple online auctions since sales taxes were mandated to be collected add about 15-20% to the final cost. What gets me above that is sales tax is calculated on not only the price but the shipping cost. So what appears to be a “bargain” quickly becomes not so much.

 

[22hipower]

The thing about Rock Island is that they get items that are hard to find. Their descriptions are usually accurate and the pictures are good although you're responsible for knowing what you're buying (the ad may say "with box" but it doesn't necessarily say its "the" box or even a box for that model gun. Many items go for premium prices but now and then, as with any auction, some bargains sneak through. Not the best place to buy relatively common firearms that can be found elsewhere.

Jeff
SWCA #1457

 

[22hipower]

You can save an additional 1% bidding by phone.

Do you save 1% by bidding by phone or do you pay an extra 1% for using that feature? I haven't used it but according to their website using their "bid by phone" feature ads 1%.

Jeff
SWCA #1457

 

[444 Magnum]

Every auctioneer charges state sales tax.

RIA is nowhere near the highest buyer premium site on Proxibid. Morphy Auctions charged 40% BP not long ago.

I just bought pistols and knives from Amoskeag last month. I had three pistols and four knives shipped together to save on cost. No sales tax on either end.

Morphy's is currently showing a 26% BP on Proxibid for CC purchases. They were one of the first to jump into the upper 20% on fees and I quit buying from them years ago.

As I mentioned in a previous post, bid by phone and pay by check. Buy multiple items to lower shipping cost per item and only deal with auction houses that do their own packing/shipping. Third party packers will really nail you.

 

[444 Magnum]

Do you save 1% by bidding by phone or do you pay an extra 1% for using that feature? I haven't used it but according to their website using their "bid by phone" feature ads 1%.

Jeff
SWCA #1457

The 1% fee is for using the RIA live bidding platform.

Phone bid and pay with a check -- 17.5% plus sales tax and shipping.

Again, do your homework. Not every auction house charges sales tax for out of state bidders and not every auction house does their own packing/shipping. Overall costs vary significantly.

 

[James K]

If I win/buy from a local auction house by sealed bid and pay by check the cost WAS 12% but now good ole CA has added an 11% excise tax on all thing's firearm related. Colorado just passed a similar law of 6.5%.

 

[jaestridge]

Definitely make there inflated share off the sales!