Classic Car Auctions: How They Work and How to Bid

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Few auctions have the theatre of a classic car sale. Cars roll across the stage one by one, engines running, while bids arrive from the room, the phones and the internet. It can be thrilling to watch and even more thrilling to take part in. It is also a setting where decisions worth a great deal of money are made in seconds, often on cars the buyer has never driven.

This guide explains how classic car auctions work, what the fees look like at the major houses, how to inspect a car before the sale, and how to bid without regretting it the next morning.

How a classic car auction works

The main formats

• Live auctions are held at a venue, often alongside a concours, motor show or racing event. Bidders can attend in person, bid by phone through a staff member, or bid online.
• Online timed auctions run for a set period on the auction house’s website. They are usually used for a wider range of cars and often for lower price points.
• Online marketplaces run auction-style listings, typically with a seller-supplied description, photos and video, and an active comment section where other enthusiasts ask questions.

Catalogue, estimate and reserve

Each car is listed as a “lot” in a catalogue with a description, photos, chassis and engine numbers where available, and an estimate. The estimate is the auction house’s view of the likely hammer price. It does not include the buyer’s premium or tax.

Most lots have a confidential reserve, a minimum price agreed with the seller. If bidding doesn’t reach it, the car is not sold, although it may still be sold privately after the auction. Lots offered “without reserve” will sell to the highest bidder, whatever the price.

What it really costs: buyer’s premium and fees

Car auctions usually have lower percentage premiums than art or watch sales, but because the hammer prices are high, the amounts are significant. A few examples from the houses’ own published information (accessed 25 October 2026):

• RM Sotheby’s, London Auction 2026: for motor car lots, 15% on the hammer price up to £200,000 and 12.5% on any balance above that, each plus 20% VAT. Non-car lots carry 20% plus VAT.
• Bonhams, UK: for motor cars and motorcycles (excluding automobilia), 15% on the first £500,000 of the hammer price and 12% above, with VAT added to the premium.
• Gooding Christie’s: in US live vehicle auctions, 12% up to $250,000 and 10% above; in its Paris and Geneva vehicle auctions, 15% up to €200,000 or CHF 200,000 and 12.5% above. Automobilia carries 25%.

On top of the premium, look out for:

• Import duties and VAT. If a car is in temporary import, or you are taking it to another country, extra duty and tax may apply. RM Sotheby’s London bidder information, for example, lists an administrative fee per lot for cars that entered the sale on a temporary import bond, and advises international bidders to check import duties in their own country.
• Removal and storage. After the sale, cars may be moved to storage at the buyer’s cost, with daily storage fees starting a few days later. RM Sotheby’s publishes these costs per sale.
• Insurance. At many houses, the car is your responsibility as soon as the hammer falls. RM Sotheby’s states this explicitly for its London sale.
• Transport, registration and inspection in your home country.

For a broader explanation of how premiums are calculated in bands, see our guide to the buyer’s premium.

Before the sale: do your homework

Research the model

Learn the model’s production history, the common problems and the differences between versions. Owners’ clubs and marque registers are excellent sources and often know the history of individual cars by chassis number.

Inspect the car in person, or send someone

Auction houses usually hold viewing days before the sale. Use them. Look at the bodywork for uneven panel gaps, paint differences and filler, check underneath for corrosion and leaks, and listen to the engine start from cold if you can. If you cannot attend, hire an independent specialist for that make to inspect the car for you. Ask the auction house for a condition report and any extra photos.

Check the paperwork

• Chassis and engine numbers: compare them with the registration document and any heritage or factory certificates. “Matching numbers” (an original engine for that chassis) is important for many collectors.
• History file: invoices, restoration photos, previous MOT or inspection records, and race history if relevant.
• Registration status: is the car registered in its current country, and what do you need to register it in yours?
• Catalogue notes and saleroom notices: late corrections are announced before the sale and are binding. Read them.

Register to bid early

Auction houses require identity checks and often a deposit or financial reference before approving you to bid, especially for higher-value lots. Do this well before sale day. If you plan to bid by phone or online, test the setup in advance.

On the day: how to bid

1. Set your maximum all-in price. Include the premium, VAT, import costs, transport and a reserve fund for repairs. Then calculate your maximum hammer price from that figure.
2. Know the increments. Bidding rises in steps set by the auctioneer. Know where your limit falls so you aren’t caught by a step that takes you over it.
3. Bid clearly. In the room, a raised paddle is enough. On the phone, tell the staff member your limit in advance.
4. Don’t get carried away. The atmosphere is designed to create excitement. If the price passes your limit, let it go.
5. Consider a written (absentee) bid. If you are worried about overbidding, leave a maximum bid with the auction house and let them bid on your behalf.

After the hammer

The contract is formed when the hammer falls. Payment is usually due within a few days, typically by bank transfer. Read the payment deadline in the bidder information, arrange insurance immediately, and organise collection or transport before storage charges start. If the car is heading to another country, a specialist shipper can handle export paperwork and customs.

A note on expectations

Classic cars are bought for driving, restoring, showing and preserving. Running costs, maintenance and storage add up, and market prices for individual models can rise or fall. Buy a car you will enjoy owning, and budget for its upkeep.

Planning your season? Our Auction Calendar lists major upcoming sales, and if you collect watches as well, our Pre-Owned Luxury Watch Price Guide covers the most sought-after references.

Frequently asked questions

Can I test-drive a car before the auction?

Usually not. Viewing days allow you to inspect the car and often hear it run, but test drives are rarely offered. That is why an independent inspection matters.

What happens if a car doesn’t reach its reserve?

It is not sold in the auction. The auction house may try to arrange a sale after the auction, so it can be worth asking if you were close.

Is the buyer’s premium lower for cars?

At the houses mentioned above, vehicle premiums are lower than those for art or watches, but VAT and other fees can apply. Always check the specific sale.

Who is responsible for the car after the sale?

At many houses, the buyer is responsible from the fall of the hammer, including insurance. Check the conditions of business for each sale.

Important

Fees and conditions in this article come from the auction houses’ published information, accessed 25 October 2026, and can differ per sale. Always read the conditions of business for the auction you are bidding in. This article is general information for enthusiasts and collectors. It is not financial, tax or legal advice.

Sources: RM Sotheby’s, “The London Auction 2026: Bidder Info”; Bonhams, “Buyer’s premium, United Kingdom”; Christie’s, “How to buy at Christie’s: Financial information” (Gooding Christie’s schedule).