How to budget for several lots in one sale

It's easy to keep every individual bid sensible and still overspend across a whole sale. A running total, including fees, is what stops that.

The problem

Each lot has its own premium and VAT, and the extras add up quietly. Three lots that each look reasonable can leave you a few hundred pounds over what you meant to spend.

A method that works

1. Set one budget for the whole sale, including fees and VAT, before you start.
2. Work out each lot's all-in cost as you win it.
3. Subtract it from your remaining budget.
4. Work backwards from what's left to find the highest bid you can still afford on the next lot.

Worked example

Your budget for the sale is £2,000, and the auction charges a 20% premium plus VAT (a total of 1.24 × the hammer price). You win three lots:

That leaves £326.00. Dividing by 1.24 gives £262.90 as the most you can bid on the next lot, before rounding down to a valid bid step. Working that out in your head, in the middle of a sale, is where mistakes happen.

Plan the ceilings in advance

Before the sale, decide the maximum hammer price for each lot you want and add up the all-in costs. If the total is above your budget, drop a lot or lower a ceiling now, while you're calm.

General information only, not tax or financial advice. Auction houses set their own fees and terms, so always check the conditions of sale and confirm the details with the auction house before you bid.