Buyers premiums on Vectis and Invaluable bidding

[olisuds]

Hi folks, not sure if this is just me being illiterate but I'm a bit confused by the below wording on Vectis and Invaluable buyers premiums.

So Vectis charge 20% + VAT = 24% total

And Invaluable charge 25% total (including VAT & credit card charges). But then it says no VAT is charged on lot prices - so that bit confused me.

Basically I just want to make sure the buyers premium is only 1% higher on invaluable.

BUYERS PREMIUM
We charge a buyers premium of 20% of the final price (plus VAT where applicable). Payment for lots can be made by credit card (we accept all major cards) or by cheque provided we have a bank guarantee or alternative arrangements have been agreed. A 2% clearance charge is made for credit card payment (3.1% for American Express) to cover bank costs.

BUYERS PREMIUM FOR LIVE ON-LINE BIDDING VIA INVALUABLE Purchasers will be charged a total premium of 25% on the hammer price inclusive of VAT and credit card charges. This will include a 3% charge made by Invaluable (this will be shown separately on your invoice). There is no VAT charged on lot prices.

 

[maxf]

VAT is only charged on commission, not on the lot price.

 

[olisuds]

Oh gotcha thanks Max. Makes sense.

 

[Mr-shifter]

Vat is only applicable on new goods sold for the first time.

Plus it's applicable on the service charge, ie vectis commission.

Interestingly certain cars sell more second hand then new. If a car has a waiting list and cost say £25k new, £5k is vat so the car costs £20k. If the dealer has a used model that's only 3-6 months old they may have it up for say £22k, seemingly getting 3 grand off the price and being able to avoid the waiting list the car sells for more the second time round then the first.

 

[ScruffyLookingNH]

That's interesting. I didn't know Invaluable was only 25% all in. If paying by CC then (there lies trouble!) then you're better off bidding through Invaluable, then, as Vectis charge 2% for CC payment, I believe.