Frequently Asked Questions on Purchasing Auction Items
The following are the most common questions and answers purchasing auction items.
1. What is the buyer’s premium (B.P.)?
In almost every firearms auction a buyer’s premium is charged to winning bidders. A Buyer's Premium is the amount added to the winning bid amount (hammer price). The B.P. at RIAC is 17.5% of the hammer price. It is discounted to 15% if you pay by cash, check or wire transfer. 17.5% is used for payments made by credit card.
For example, if the Winning Bid Amount is $1,000, then the Buyer's Premium would be $150 (15% of $1,000). The Total Purchase Price is then calculated as the Winning Bid Amount + the Buyer's Premium, or $1,000 + $150 = Total Purchase Price of $1,150.
2. Do I pay taxes on the lot?
In most cases no. However if the item is being consigned in state by an Illinois reseller and being sold in state (i.e. to a live bidder, or being shipped to an in-state address) then taxes do apply. All other cases there is no sales tax. The week of the auction we have a list of the lots that are taxable, just contact us for the list.
3. Is it possible to win a lot for less than the amount I bid? –Absolutely!
This happens routinely as we bid for you as if you are actually here. We do our best to get you the lot at the best price possible. For example: Say a lot has a low estimate of $1,000. If you had an absentee bid in of $900, the bidding might start at $500. Let’s say someone on the floor bids up to $700 and stops, if there are no other absentee bids or phone bids for this lot you would win the lot at $750.
4. Can I purchase firearms at auction and have them shipped to my home?
If you bid on items that are antique we can release the firearms to you or ship directly to you. If you are bidding on an item that is manufactured after 1898 and do not hold an FFL we would have you fill out the standard ATF form 4473 if you live within Illinois. If you live within a contiguous state of Illinois, (i.e. Iowa, Missouri, Kentucky, Indiana, or Wisconsin) and are purchasing a long gun we would also have you fill out the “yellow form” and wait the required period. Handguns must be shipped to an FFL dealer for these states, we can help you find one if you do not use one currently. If you live outside this area or do not fill out the ATF form 4473 we will ship to an FFL licensed dealer of your choice and they will transfer the gun to you. Be sure to check your state requirements on firearm ownership before placing a bid. If you have any questions about the ATF form 4473 or regulations on transferring firearms please contact us.
While searching our website catalog above the description is a field labeled ‘Class’ that will tell you if the firearm is antique, modern, or curio and relic.
5. I see more than one gun in this lot. Is the amount I bid for each gun or all guns in the lot?
No matter how many items are in the lot your bid amount is for everything in the lot. For example; if a lot has 5 rifles in it, and your bid amount was $1,000 and you won; you get all 5 rifles for the amount you bid plus the buyer's premium.
We often are asked this question on multi lots too. Do you sell each of the guns individually?
No. We sell the items in the lot as a lot. The estimated value on the lot is for all the items within that lot.
6. The items I won during the auction all sold for maximum amount of money I was willing to bid?
At RIAC we try our best to win the lot for each customer for the lowest price possible. Remember that many times customers are trying to bid as little as possible to win an item. For example if you bid on 10 lots in the auction, you won 2 of the 10 at your maximum bid amount. This also means you lost 8 items as your bid amount was too low. There are thousands of bidders in each auction. You are bidding against others that also know the value and want to win for as little as possible. If you placed low bids on 100 lots and won a single lot for your maximum price. That is a success!
7. When will you ship my items?
Please bear with us as we have as many as 5,000 firearms to pack and ship after an auction. You can help expedite your invoice if you fill out the sealed bid winner’s form in your web account tools. This is available after each auction if you were a successful bidder.
8. When will the prices realized at auction be posted?
Typically we post the prices on our website within 2-4 days after the auction is over. If you purchased a premiere catalog you will also receive via mail a copy after premiere auctions only.