Auction Terms Explained: From ‘Reserve’ to ‘Hammer Price’

Online auctions are becoming the go-to platform for businesses and individuals looking to buy or sell assets across South Africa. Whether you're bidding on earthmoving equipment, vehicles, or liquidation stock, understanding the terminology used during an auction is essential. 

At WCT Auctions, we believe that informed bidders make confident decisions, and this glossary of key auction terms will ensure you’re one step ahead.

 

What Is an Auction?

An auction is a public sale where goods or assets are sold to the highest bidder. At WCT Auctions, our platform facilitates timed online auctions across multiple categories, including construction equipment, mining assets, trucks and trailers, and salvage stock, making it easier than ever to buy and sell anywhere in South Africa.

 

Key Auction Terms You Should Know

 

Reserve Price

The reserve price represents the lowest amount a seller is prepared to accept for their item.

At WCT Auctions, some lots may carry a reserve price clearly indicated in the item listing to ensure the seller’s interests are protected. If no bids reach the reserve, the seller has the right to withdraw the item or negotiate post-auction.

 

Opening Bid

This is the starting bid at which the auction begins. It is set by the auctioneer and does not necessarily reflect the item's value or reserve. It simply encourages participation and sets the tone for bidding activity.

 

Hammer Price

The hammer price is the final accepted bid when the auction closes, literally when the metaphorical hammer “falls.” This is the price the winning bidder agrees to pay, excluding applicable VAT, commission, or administrative fees.

???? Tip: Always review the full breakdown of costs after the hammer price. At WCT Auctions, these details are outlined in each lot’s Terms & Conditions section to ensure transparency.

 

Buyer’s Premium

A buyer’s premium is an additional fee added to the hammer price, typically expressed as a percentage. It covers the auctioneer’s services and contributes to running the online auction platform.

WCT Auctions maintains a competitive and clear buyer's premium structure disclosed upfront to avoid surprises.

 

Lot Number

A lot refers to the item or group of items available for bidding. Each is assigned a lot number, which helps buyers identify, track, and query listings easily throughout the auction process.

You can browse upcoming auction lots on our View Auction Lots page.

 

Subject to Confirmation (STC)

Sometimes, items are marked as "STC – Subject to Confirmation" after the auction ends. This means that even if you placed the highest bid, the final sale is still pending the seller’s confirmation. This typically applies when the bid has not met the reserve price, and the seller needs to decide whether to accept the offer or not.

 

Understanding the Auction Process with WCT

At WCT Auctions, the process is simple and secure. Here's how it works:

 

Step 1: Register to Bid

All buyers must create an account and register for the specific auction they want to join.

 

Step 2: Browse Lots

Explore upcoming assets from various timed online auctions. Auctions typically take place twice a month and will run from a Monday morning to a Wednesday afternoon. 

 

Step 3: Bid with Confidence

Once the auction opens, place bids in real time or use absentee bidding if needed. All bids are binding.

 

Step 4: Winning & Payment

If you place the highest bid and it meets the reserve (or receives seller approval), you’ll receive an invoice detailing payment and collection.

 

FAQs About Auction Terms

 

What happens if I win the bid but change my mind?

At WCT Auctions, all bids are legally binding. Withdrawing after winning may result in penalties or exclusion from future auctions.

 

Can I inspect the items before bidding?

Yes. While our auctions are conducted online, many listings include inspection details. Always refer to the specific lot information or contact our team for queries.

 

Why Understanding These Terms Matters

Whether you’re buying mining equipment for your next project or selling unused assets to free up capital, knowing these auction terms reduces risk and improves your chances of success.

WCT Auctions provides a professional, transparent experience backed by expert facilitation, clear documentation, and nationwide reach. We support both buyers and sellers through dedicated services, from digital listings to post-sale logistics.

 

Bid Smart, Bid with Confidence

From reserve prices to hammer time, understanding these essential auction terms will empower your buying or selling journey. At WCT Auctions, we’re here to simplify the process so you can focus on making smart, strategic decisions.

Ready to bid? View our latest listings and register today.