IH350 U sold at auction

On Labor Day, at an auction just a bit west of St Cloud MN, a nice looking IH350 U with loader sold at $3000 plus 10% buyers premium plus 7% sales tax. That brings the total to nearly $3500. I knew the seller and the tractor's history. The engine had been rebuilt in a shop just a few hundred hours ago and a new clutch and tires installed at the same time (probably about 8 years ago). The paint was decent, but not show quality. It had been properly 12 volted. The TA, live PTO, fast hitch and brakes all worked properly.

The down side....the steering. The PO had installed a power steering unit from a bone yard, including the priority/diverter valve, but it just did not steer well at all. And the front wheels had a serious problem with toe out. I think something was messed up in the left side pitman arm. In frustration the PO just set the loader bucket down, pushing the front wheels up a bit and then set the steering to the position he wanted. No wonder he wanted to sell out.

My son was one of the bidders, but his sense of $$ told him to bail out after $2500, and I think he was right to do so. The new owner (a guy about 77 Y.O) offered to help us load our 1,000 lb Bush Hog 286 mower with the tractor loader and soon found he had a problem on his hands. Being as I had brought my 25 ft trailer, I took pity on the old guy who was just planning on driving his "new" tractor 32 miles home, that I hauled it for him for just the cost of fuel and a burger. It was gently raining, so he would have croaked from hypothermia before getting it to his place near Little Falls.

I wished him well in solving the steering problem and gave him a few tips to consider. Son and I came home with my very nice 6 ft Bush Hog mower.

Paul in MN

That 10% buyers fee is a rip off. A few auctions here have it. I know of quite a few people that won't buy if they have that.

I don't see anything wrong with it. It is stated at the start, so all you have to do is bid a little lower.
Zach

I agree i wont go to an auction that has a buyers premium. Erik..

Poor ol' guy. I hope he lives long enough to get it fixed. I paid $650 for a 350 U and have the same steering problem...no where near fixed yet.

Every auction they have around here has that buyers fee. It's on some of the houses that they auction too. Hal

I also refuse to go to an auction that has a buyers fee. I think the individual who is having the auction should pay the commission to the auctioneer because they are the one who is buying the service.

(quoted from post at 18:45:47 09/07/10) I also refuse to go to an auction that has a buyers fee. I think the individual who is having the auction should pay the commission to the auctioneer because they are the one who is buying the service.

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I avoid them as well. Bill Stade Auction Co down in Sharon, WI charges the seller around 7% to hold an auction and no buyers fee. A couple others towards Janesville/Milton are charging 7-10% buyers fee(that's what the ad says). I guess I always figured they were charging the seller the normal fee and the buyer a fee so they were really making 15-20% Maybe that is an incorrect assumption, but I can see why people have a love and a hate for auctioneers.
FYI - Watch your purchases in Northern IL and Southern WI. I have heard of quite a few more thefts taking place in the area.

You guys just go ahead and stay away from them so I can get better deals. All you have to do is be smart enough to factor in premium when bidding and rember that the other guy is paying it as well. After all EVERY single one of you pays a buyers premium every time you go to a store. Its called taxes.

I think the auctioneer in our area gets a lot of sales because he can save the seller a bunch of money by having buyers fees. I often wonder how that impacts the prices at the auctions. Those auctioneers that don't charges a buyers fee emphasize that point in their auction ads.

The auctioneer should not have charged the 7% sales tax either. Farm equipment, and yes a 350U is classified a farm tractor is exempt from sales tax in Minnesota.

I used to avoid buyers premium auctions. No more. I do take into account that their is a buyers premium and bid accordingly. I am of the opinion that the buyers premium auction prices are overall lower than the auctions without the BP.

But as I understand the very confusing law, that only applies to someone who is actively farming, and using that piece of equipment in the production on farm income. I am actively farming, so I filled out the MN sales tax exemption form at the auction trailer, and bought my mower without sales tax. All the detail on the sales tax form means they can track you down, if you are not filing a federal schedule F. And what is totally crazy about this law is that there is no exemption for ag equipment tires or tubes, and no exemption for fencing, unless you are using the fencing to for raising Elk. Thanks to the many politicians who have had their hands in creating this mess!

But as this auction had only used stuff, it was a suprise to me that sales tax entered into the picture at all.

Paul in MN