Dear Steve,
this is how an auction buying agent works:- viz:-
One agrees with the agent what car, colour, price range, age, mileage ect. Then one pays a nominal deposit of one to two hundred pounds to show serious intent. If you cancel then, they keep that money, fair enough.
The agent will then search upcoming auctions for what you want, tell you he's going for it and then on the day of auction, look at the car before it goes under the hammer. They will telephone you to report on it's condition and paperwork and (well, my last buyer did) give their opinion. They will then bid for the car within the agreed aforehand maximum price. If all goes well, he will have bought the car.
You buy the car off him for the hammer price and as previously mentioned, 6% plus VAT;- about seven and a quarter percent on top of the hammer price. Then either go to the buying agent with a banker's draft for the full amount less the one or two hundred pounds ernest money and drive your new car away OR transfer the funds electronically and pay extra to have the car delivered to you.
I believe the general term is employing an agent to buy on commission. It is done for all types of auction. My request for a recommendation for a trustworthy agent is because when money enters the deal, trust often flies out of it. There are very honest car buying agents out there and there are some who are less so.
I hope this answers your question.
Yours faithfully,
ishmael.