Jargon Buster - BCA Portugal

Jargon Buster

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BCA Auctions Language

Not familiar with the language of auctions? Find below the definitions for the specific terms.

What is the reserve price? 

Before the sell, the seller refers a base price in wich he agree to sell the car. During the auction, once the reservation price is reached, the car is automatically sold to the highest bidder. 

What is a temporary sale? 

if a car doesn't reach the reserve price set by the seller, but the bidder believes that the price achieved in the auction can be accepeted by the seller, he accepts the higher bid as a provisional sale. The BCA will then negotiate withouth your name with the seller, seeking to complete the sale. The seller may accept the provisional sale or ask for an increase in it. The sale will only take place if both parties agree to the negotiated price.

What is the implied tax (VAT)

Some of our used cars include a system called VAT. This scheme allows registered dealers to pay only the VAT corresponding to the difference between the amount paid by the car and the price at wich is subsequently sold - thas is, the margin. There is therefore no VAT to be recovered on the item purschased, and there isn't VAT payment if there is no profit from the business. 

In an online auction, what is the Deductible VAT? 

Deductible VAT refers to vehicles whose VAT was never charged to the final customer, that is, the VAT that was always recovered from the tax authorities. Usually, they are leasing or rentals contracts, with VAT being shown on the invoice as a separate element of the total sale price. 

In an online auction, what is the VAT addition?

The VAT is added to the vehicles whose price charged by BCA is exclusively VAT (no VAT). The final payment made by the buyer will include VAT, and this will be included at the value of the winning bid, unless the purschase can be invoiced on a VAT-free basis. BCA will invoice vehicles purchased for export without VAT. In these cases, BCA will invoice the net value on all those who are dependent on export evidence. Check the registration process, if you want to satisfy the conditions for registering free IVA invoices for international auctions.

Car sale jargon at BCA

Unfamiliar with the car auction jargon? Find below the definitions of specific terms you might be looking for.

 

  • Auction in hall - physical auction at one of our branches.
  • Bid Now - open online auction for a given period.
  • Buy Now – Fixed Price auctions.
  • Buyer’s fee – the fee payable on each vehicle (or lot) purchased.
  • Catalogue – the listing of all vehicles to be offered for sale at a given auction.
  • Closed auction – the sale can only be attended by invited buyers (usually trade).
  • Fall of the hammer – signifies that the vehicle has been sold.  No further bids will be accepted after this time.
  • Hammer price – the price the vehicle is sold for, when the auctioneer states the vehicle is “sold” and brings down the hammer.
  • Live Online - Webcast to online auction run by an auctioneer live
  • Lot number – the number allocated to the vehicle (and marked on the vehicle) going through auction, listed in the catalogue.
  • Non-runner – a vehicle that won’t start.
  • Open auction – a sale that can be attended by all buyers.
  • Provisional sale –  if a vehicle has not met the reserve price, we contact the seller to ask if they are willing to accept the highest bid. The vendor may accept the provisional price, or may request a further increase in price. Only if both parties reach agreement on the price negotiated, will the sale be binding.
  • Remarketing – the sale of used vehicles at auction.
  • Reserve price – the minimum price specified by the seller for which they are willing to sell the vehicle.  This information is confidential to the auction.  If the reserve price is not met, the vehicle will be put forward for provisional sale or on sell during the next auction.
  • Sealed Auction - a type of auction in which all bidders simultaneously submit sealer bids to the auctioneer. Highest bid wins.  
  • Sold as seen – applies when a vehicle is offered without a guarantee.
  • The sale – the auction.
  • Vendor – people or companies who are selling vehicles at auction.
  • xBid - Extra window of time to bid at each vehicle at the end of certain Bid Now auctions.


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