Buying a horse at auction

[Cash79]

hello I read alot on here & really enjoy it but never post. I have a bit of a stupid question but what is the procedure at a sale if say you buy a mare after signing the ticket do you go directly to the sales office or where to pay? Is there other fees or taxes to pay by the buyer or are there any fees to the sales company that are the buyers responsability? I know this sounds stupid but I would just like to not be totally lost if I buy a horse at auction as to what to do. Thanks

[madelyn]

Hi. I've only bought at a few (Fasig-Tipton, Keeneland, etc.) but first thing when you get to the sale is to register as a buyer. At Keeneland and Fasig Tipton, you go into the office, fill in an application, etc., and they verify your bank information etc. At some of the smaller ones, you fill in an application and they give you a bidder's number. Either way, you can't buy without pre-registering.

There is sales tax payable.

If you wish to purchase through an agent (ie: you can't be there) and you have agreed to an agent's commission, that can be payable also.

Good luck, pm me if you need more info.

[HiddenEchoFarm]

In addition to what Madelyn said, get the sale catalog sent to you before the sale & read through all the boring legal stuff in the beginning -- if there are specific requirements for getting a bidding number [at smaller sales, you sometimes even need a letter-of-credit] it'll be printed there. If they take plastic & there's a surcharge to do so, it'll be printed there. And all additional charges should be spelled out. [And I'm talking about sales company charges -- if you use a bloodstock agent, you'll need to get THEIR charges explained, too.]

Madelyn mentioned a couple of the big companies, but since you didn't mention where you might be going to buy the mare, I wanted to add that each sales company sets it own rules. For example, I've seen smaller companies also allow you to buy with a credit card, but charge an extra percentage for the privilege.

If you ARE using a bloodstock agent, he or she should be able to tell you exactly what the additional costs might be. If he or she can't, you might want to re-think your choice of bloodstock agent.

Good luck!

[Jolene]

Either way, you can't buy without pre-registering.

Not true everywhere, especially at small regional sales. The OTOBA Sale that was just held Sunday has never required registration, that I recall.

[magic code]

What Jolene said. If you are paying on credit, you have to pre-register but if you're paying cash you don't.

[Douglas Brown]

If you go to www.keeneland.com and look under sales you can find a section on "First Time Buyers." This is pretty good information. I used it when I bought my first horse at auction. The action (and adrenaline) can be fast, furious, and intimidating to a first time buyer. Others with more experience may have a different experience but I found that the bid spotters very helpful. If there is a lot of bidding action you might not be aware if your bid is the current high bid or not but the spotters do and they'll nod you off if you bid against yourself (they did me anyway).

[aurora]

Not all auction companies charge sales tax. That depends on the state where the auction is held.

[madelyn]

So true... not dependent upon the company but upon the sales tax laws in the state in which the auction is held. In Kentucky, state sales tax is chargeable on horses of racing age, or intended for racing. There is no sales tax on breeding stock.. but there IS sales tax on stud fees.

The sales tax on HRA or young stock is waived if the sales company is provided with an out of state destination for the purchase.

[henthorn]

As Madelyn said, moving a purchased horse out of Kentucky to another state will allow waiver of the sales tax, but only if it is a certified hauler. Taking your neighbor's trailer won't cut it.