For those who are already accustomed to the universe of motorcycle auction, the vocabulary used in this environment is no longer a problem.
But for those who are inexperienced, some terms may be confusing at first. But it's nothing too complicated.
In this article we will help you understand the main terms used in the world of motorcycle auctions, so that you become familiar and have a good experience when participating in an auction, whether online or in person.
Check out the most important terms below.
What is the notice?
This is a very important term and you need to be familiar with it. The auction notice is a legal and official document of the auction.
This document contains all relevant information about the auction, such as the location of the auction, date and time of the event, necessary documentation, the condition of the motorcycle, the process for collecting the motorcycle, etc.
In short, all the auction rules are in the notice. And let's suppose you buy the bike and realize that there is something that is not in accordance with what was advertised or agreed, you can appeal using the notice.
But if the information is not in the notice, you will not be able to appeal using legal means. Because what counts is what is in the notice. So pay close attention to the notice.
What is the Lot?
Another common term used in auctions is “lot”. There are auctions for various types of goods. For example, some auctions offer furniture and household appliances. The lot is the set of goods that are being auctioned for that value.
In the example of furniture and appliances, a lot may include a stove and a gas cylinder. This set is advertised for a minimum price.
In the case of auctions, the lot normally includes only the single item being auctioned, in this case the motorcycle or car.
What is a principal and a successful bidder?
These are the two fundamental elements for an auction to take place. The principal is the seller. This seller can be a legal entity (a company, such as banks, construction companies or retailers) or an individual.
The successful bidder is the final buyer, the one who made the last bid and managed to buy (or win the motorcycle).
It is important that you understand this difference. The successful bidder is not the one who makes any bid, the successful bidder is the one who wins the auction.
What are Bids?
Bidding is the offer. Each lot has a minimum accepted value. And how are these values established? In the case of judicial auctions, these values are established by the judge and discounts that exceed the margin of 5% are normally not accepted.
In the case of extrajudicial auctions (those that do not involve interference from the judicial system), the auctioneer may accept a lower offer than the offer established at the beginning, depending on the case.
In these cases, the auctioneer accepts bids and the motorcycle is sold when it comes closest to the initial minimum value.
In order for you to have good experiences and close good deals at auctions, you need to familiarize yourself with these terms.
Now that you have a good understanding of these terms, you are ready to participate in the next auction.