Buying a watch at auction

Watches come up for sale at auctions all over the UK, in salerooms and online. Buying at auction follows its own rules.

Before you bid

If you have never been to an auction, nidirect suggests going along to watch one before you bid. When you plan to bid, it suggests a few checks.

Once the auctioneer's hammer falls, you cannot change your mind.

What is added to the hammer price

The hammer price is the winning bid. Some auctions add fees to it. HMRC's guidance for auctioneers names a buyer's premium or other commission, and costs such as packing, transport and insurance. nidirect notes that VAT applies to these fees.

When you sell a watch at auction, the auctioneer may charge you a commission. HMRC's guidance for auctioneers works out the seller's price as the hammer price less any commission charged to the seller.

Your rights at a saleroom

Your rights depend on whether the watch is new or second-hand. Under the Consumer Rights Act 2015, a buyer of second-hand goods at a public auction that people can attend in person is not treated as a consumer for most of the Act's rules on goods.

Pembrokeshire County Council's Trading Standards guidance explains what this means in practice. The usual legal rights and remedies do not apply automatically, and the auctioneer can exclude them. Check the notices at the saleroom or on the auction's website for the details. If you buy new goods at a public auction, you keep your full consumer rights.

Buying online

When a trader sells through an internet auction site or marketplace, Trading Standards guidance says buyers can expect the goods to be of satisfactory quality, as described and fit for purpose. Buying from a private seller gives you fewer rights, although the goods must still be accurately described.

Gold, silver and platinum cases

GOV.UK calls the hallmark one of the oldest forms of consumer protection. A seller who describes an item as gold, silver, platinum or palladium must have it hallmarked, apart from items under a minimum weight. Ask whether the case is hallmarked. Hallmarks can be tiny, so ask for a magnifying glass. The same law applies online, and GOV.UK suggests finding out where an online seller is based.

GOV.UK says selling unhallmarked goods is a crime. GOV.UK advises reporting a trader who does it to Trading Standards at your local council.

Spotting auction fraud

Report Fraud, the police reporting centre for fraud and cyber crime, lists the common auction scams. In some, the buyer pays and the item never arrives. In others, the item turns out to be counterfeit or different from its description. Some sellers secretly bid on their own items to push the price up. After a lost auction, fraudsters may send a fake "second chance" offer.

Report Fraud suggests checking that an auction is genuine before you use it, and paying by credit card if you have one. If you have been a victim, tell your bank. Then report it to Report Fraud in England, Wales and Northern Ireland, or to Police Scotland.

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