Quote:
Originally Posted by teak360  The gavel price was $100,000. The buyer's premium was $10,000 so the final sales price was $110,000.
The seller also pays 10% of the gavel price, or $10,000.
So, the seller only got $90K for the car, but the buyer paid $110K |
The sale price was $100,000 Mr. scott. The buyer's premium is not part of the sales price. Also, your assumptions regarding the buyers premium and seller's commission cost could be wrong. The amount of the seller's commission would depend on whether or not there was a reserve on the vehicle, and in addition, if there was a reserve (which in this case there was) the seller's commission could be lowered during bidding to get the seller to drop his reserve. Likewise, the buyers preminum could be lowered during the bidding to get the buyer to bid higher. The object being to get the reserve off and the car sold.
So I doubt that you know what the seller paid or the buyer received, unless of course, they informed you.