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Heritage Auctions
stevepk
Posts: 238 ✭✭✭
I acknowledge this may be a dumb question, but I will ask anyway.
I would like to consider buying coins from Heritage auctions. I am not a dealer and do not have a tax ID number. I am simply a collector who cannot make every coin show.
How do the Heritage Auctions work? Is it similar to Ebay? As a buyer, do I just need to create a profile for free by providing my e-mail address, mailing address, and payment information? Does Heritage accept Paypal? Is there a penalty of any sort for using Paypal? Can I jump onto Heritage any time I please, or do I need to wait for auctions that are held on specific dates?
Can someone provide a Heritage Auction 101 crash course in reply to this post?
I would like to consider buying coins from Heritage auctions. I am not a dealer and do not have a tax ID number. I am simply a collector who cannot make every coin show.
How do the Heritage Auctions work? Is it similar to Ebay? As a buyer, do I just need to create a profile for free by providing my e-mail address, mailing address, and payment information? Does Heritage accept Paypal? Is there a penalty of any sort for using Paypal? Can I jump onto Heritage any time I please, or do I need to wait for auctions that are held on specific dates?
Can someone provide a Heritage Auction 101 crash course in reply to this post?
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Comments
All auctions are open for bidding at least several days before they close. You may want to start on the internet only coin auctions that end every Sunday and Tuesday.
Generally lower cost coins and a bit less stress until you get the hang of it.
Heritage accepts Paypal and credit card payments for up to $2500 invoices. Checks or other forms of non CC payments when over that amount.
Shipping fees tend to be on the high side, so make sure that you consider that when bidding.
Edit to add. Depending on the state that you live in, purchases may be subject to sales tax. Check on that with Heritage before bidding.
Sales taxes on a higher-end coin could sink a person!!
When you sign up and before you participate in an auction, be sure to read the fine print. Heritage is great, but you can get burned if you make mistakes. It's also good to not risk too much on coins that you haven't seen in hand. At the very least you'll want a trusted set of eyes on the coins you intend to bid on if they're expensive. You're playing without a net and you'll be expected to step up and buy anything you win. With few exceptions there is no return option. Some of my sweetest acquisitions and worst disasters have come from playing this game. Also, you're generally better off to figure out your maximum bid and stick with it. Auction fever can cause ugly situations and sometimes live bidding can have issues due to computer lag. I once won something when I hit the bid button and three or four other bids were registered before mine. I exceeded my max on the coin by quite a bit........ there's lots of ways to learn things.
<< <i>I live in Texas. Does Heritage charge taxes on sales in Texas? If so, is it the standard 8.25%?
Sales taxes on a higher-end coin could sink a person!! >>
I believe so on your two questions. I don't know if they have a level where the tax is exempt.
I am sure that a call to their customer service department on Monday can clarify the tax questions.
A Heritage auction is not specific time defined like an eBay auction. The Heritage auction ends when no one raises the last bid. So, sniping is not a usefuls strategy in a heritage auction. But Heritage provides credible information on any one coin is way more useful than eBay.
I think that it is the best auction format for coins existant today.
OINK
Heritage "Resources"
Heritage Sales Tax Information
Heritage Terms and Conditions (Late night reading only)
You'll find few sites with the variety of coins and grades that Heritage has. But watch the Buyer's Fee (17.5%), shipping, and taxes! They can turn a good buy into an Ooops in a hurry.
If I need a seller's permit, how do I acquire it? Does the seller's permit incur a fee? Why do I even need a seller's permit to buy a coin? I can understand needing one to sell a coin, but not to buy unless Heritage assumes everyone is a coin dealer. Some of us are just collectors without the intention of selling.
If you aren't a dealer dealing then you don't need a resale number.
If you are not a dealer, then you can bid on any of their auctions as long as you have an account with them. Most likely, since they are in dallas, and your a resident of TX, you will have to pay sales tax on all the purchases made. Also, individuals who fall in the states in which the auction venue is held are required to pay sales tax on purchases. State sales tax rates vary depending on state as well as some states are exempt on certain types of purchases or when values exceed $x. amount of dollars. Check your local tax rates. I believe the tax rates and info are printed in the auction catalog's for each sale.
Typically in order to get a resale certificate, you would need to be engaged in the business of buying and selling of coins as a dealer and reporting all sales , etc Most states require this monthly , some quarterly. For example here in NC, I send in a monthly report and payment for the taxes collected on NC sales. If you are buying for personal reasons , and selling down the road, this does not constitute buying and selling for profit as a dealer, and therefore would not be eligible for a resale certificate.
1. The hammer price is not going to be close to what you'll end up paying once sales tax (they have reciprocal agreements to collect with several states) and shipping are factored in. There might be one or two nickel and dime items added to the invoice as well which I am not remembering, since it has been a few years since I won anything in a Heritage auction.
2. An auction can take several months to complete, from the initial notification to the actual auction day and the period that follows for payment and shipping. One has to have a lot of patience to be able to view a desirable coin for weeks upon weeks before ever having a chance to have it in hand!
Please correct me if I am wrong, but my understanding so far as a collector is:
1. create a free profile on Heritage
2. submit photo ID (drivers license) to Heritage
3. establish credit by providing social security number and credit card number OR references from two business references
4. Wait for an upcoming auction offering the coins I want
5. Look for shipping charges, bid appropriately considering the 17.5% buyer's premium
6. If I win, payment can be made via personal check, credit card, or Paypal
7. Wait for coin to arrive in mail
Am I missing anything?
My objective is to have access to the greatest number of quality coins at the best prices. As a collector, I typically make three to four purchases annually. I may even make one or two purchases annually. If bidding on Heritage incurs fees that are offset by a high number of transactions, Heritage will not be practical for me. I am not a dealer who buys and sells every day.
Is Heritage suitable for someone like me? Do collectors often bid through Heritage, or is it mostly just dealers?
However, paper currency, books, supplies, etc are still subject to sales tax.
If you want to open credit with them so that you can bid on 6-figure and 7-figure items, then sure, I bet they'd check you out a bit more carefully. If you're planning on spending hundreds or even thousands of dollars, you're down in the noise for them.
Shipping charges at Heritage are listed here. If your invoice total is less than $1,000, then shipping will probably be less than $15... and if a $15 shipping charge is going to hurt your finances, you probably shouldn't be spending your money on coins in the first place.
In short, I think you're overthinking things.
<< <i>Based on the comments above, it is advised to buy less expensive examples first to benefit from the learning curve. >>
True of most anything.