exchange rate opinions requested

I was the successful bidder in an auction by a European (not British) company that was held in London. Today I received an invoice, over a week later, denominated in euros with the exchange rate for GBP to Euros that works out to $1.5/GBP exchange rate vs the $1.35/GBP today. All of the literature is denominated in GBP (£). How would you answer the invoice in euros at the higher exchange rate in place today?
I am not inclined to pay the higher exchange rate, =$50.

 

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RR - can you just pay in GBP instead of USD? Do a wire transfer. Or pay by credit card/PayPal if they don't charge a fee? PayPal and your credit card will have a more competitive (though maybe not really competitive) rate. Credit cards, in my experience, have more competitive rates. You can also calculate out what the credit card fee (usually 3.5%) is compared to the cost of exchange rate difference.

While I think only temporary, it's a good opportunity for us American buyers.

 

Is it worth the fight? I mean, at a 15 cent per dollar difference and depending on the final hammer price, it just may not make much difference.

 

How bad do you really want the item you bid on?

 

Bing, You are probable right. The question I should ask, am I paying more than I thought I would pay.

 

As Carthago said, you can wire exact payment in Euros, although some US banks make that an expensive and tedious process. Otherwise, the exchange rate risk is on the bidder; it could as easily swung in your favor.

 

You could put your problem to the seller. They might as well be willing to help you.

 

I'm in the same scenario with the same auction house with an invoice with a couple more zeros on it. I've pushed back: it's clear that they're doing this just because of the Brexit. The change to Euro from GBP is arbitrary and purely seeking profit from their side. The auction was held in GBP and they have a UK address and company name - if the pound had gone up in value, making us US buyers pay more, they undoubtedly would never have changed the invoice to Euro.

As mentioned, the risk is always on the side of the buyer: normally, an auction house can't choose after the fact to change the currency in which the sale occurred to suit them

That said, they've actually changed the terms and conditions on their website to say that they CAN do this, but I have screenshots of them as they originally were. Ex post facto doesn't exactly apply to auction houses like this!

I've been hit by exchange rate changes many, many times. Sometimes it works in my favor; sometimes it really doesn't (especially with the volatility in the CHF and EUR in the last couple years).

What they're doing is definitely unfair to the collector. Interestingly, I had a dealer representing me on one lot in the same sale, and they were also buying coins for stock. I'll soon be able to see if they're treated the same way - I spoke with another dealer who literally laughed out loud at the circumstances, saying, no, that's not how it works.

So, I suggest fighting it. I'm not as concerned with the dollar value as I am with the precedent (although I don't foresee others changing invoices to whatever currency suits them). This auction house is known for playing games, so I shouldn't really be surprised.

I sent them a lengthy email two days ago after receiving my invoice and haven't heard back. If they don't agree, they will certainly have lost me as a customer.

 

Ah, I read the original post too quickly! I didn't realize that they changed the currency from pounds to euros. I agree with your take on this.

 

That is a despicable way to treat bidders. I would fight it too, and if it meant that my account was permanently blocked so be it. I would not want to do business with someone that treats their customers in such a way. Name them and shame them. Let others here know to be wary of these people.

 

I missed the point why so many of you insist in buying from sellers that are, at best, shady. I guess it is just a sign that you are so addicted to any shiny bauble they offer that you can not just walk away. I don't care if is a sandwich shop advertising an item for $1 on the menu but charging $2 at the register or a big dollar deal. Supporting businesses that play like you need them more than they need you proves that you agreed with them. Swawk and walk. Spend twice what you lost making sure everyone you know is warned away from them. There are still dealers of honor. Keep them in business with your patronage.

 

This situation really does depend entirely on the terms of sale that you agreed to. If there is nothing in there about paying in the manner in which they seem to have set out (likely due to Brexit and the drop in the Pound Sterling), you are not subject to pay in that manner. However, considering exchange rates, that all depends on the day you PAY, not the day you bid or the auction closes. That's one reason I like Swiss auctions. The Franc is just about equal to the dollar so it is easy to figure out without a calculator (which I am entirely dependent on!).

 

Like Volodya, I misread the OP. This is totally wrong and I'd push back too!

Who is the auction house? I would like to know.

 

I've reached out again, still with no response...

 

Nevermind, I figured it out. Bertolami Fine Arts f/k/a ArtCoins Roma.

Their SixBid terms reflect what I would presume are the original terms - which I'm sure they are desperately trying to have SixBid change as I write this. These are their (new?) website terms on ArtCoins website:

"The payment of the sold lots must be made immediately after the auction and can be made by bank transfer, cash, check, bank check bank account, credit card (Visa or Mastercard).Bertolami Fine Arts LTD may, in its sole discretion, issue invoices in UK pounds (GBP), US dollars (USD), Euros (EUR).
If the invoice are counted in Euros or US dollars, we will apply the exchange rate between UK pounds and Euros or UK pounds and US dollars fixed at the time of the contract of sale (auction date)."

Before it gets taken down from SixBid, here's the original Section 8 Payment terms for you everyone who is similarly situated with them:

8. PAYMENT

The payment of the sold lots must be made immediately after the auction and can be made by bank transfer, cash, check, bank check bank account, credit card (Visa or Mastercard).
Bertolami Fine Arts LTD billed to the same person that is at the registration of the pallet unless otherwise agreed previously agreed with the Administration.
As required by law, Bertolami Fine Arts LTD is obliged to call for their customers to show an identity document (identity card, driving license, passport) and confirmation of address.
The buyer intends to pay by check’s bank must make arrangements with the Administration. It’s not possible deliver the goods before the payment by check or bank draft until encashment of the check, unless otherwise agreed prior to the auction.
The bank details for transfers are as follows:

Barclays, IBAN: GB59 BARC 2057 7690 1999 66 – Account Nr. 90199966 - SWIFT/BIC: BARCGB22

Payment can be made by Visa or Mastercard only by the cardholder.
Bertolami Fine Arts LTD reserves the right to check the source of the payments received. Bertolami Fine Arts LTD reserves the right to refusepayments received from different people by the purchaser. However, in limited circumstances and in any case with the consent of the seller, Bertolami Fine Arts LTD has the ability to offer buyers it deems reliable the option of paying for goods purchased at cadences deferred. The mode of deferred payment will be set out before the sale. Before considering whether or not to grant deferred payments, Bertolami Fine Arts LTD may ask for referencesand documentation on the reliability of the buyer's identity and reliability. It will not allow anyone to withdraw the lot until it will be canceled,unless it has been granted a credit before the auction.

 

Well, there are certainly some language issues there! Many of the words used (and in the syntax) are either vague or completely wrong. I can only imagine that one is stuck with those terms (which I assume they will interpret however they wish). I see two options: default and risk the wrath of the auction house and their potential influence with other houses, or just pay up and move on, right or wrong, your choice to do business with them again as you see fit. It remains to seen if the coin is worth the outcome or not (for the buyer, not anyone else).

I recently encountered something similar with regards to items consigned and sold at auction. When I received my auction payment it included line items for each: "Insurance Fee". This amounted to 2% per lot. This charge does not appear in the consignment agreement. Not anywhere at all. No other charges other than the 12.5% commission are mentioned. Now, I dont like 'hidden' fees nor surprises, and this was a surprise to me. Especially so that I am paying them an extra 2% (apparently at random??). Bottom line, they did well on the prices realized and overall I am happy with the results. So....I will continue to do business with them and accept that 'hidden' fee (though I will e-mail them and advise that they change their consignment agreement). While I am happy with a few thousand dollars here and there, anyone consigning much more is just losing money, so some may be very unhappy!

 

My bad! looking through the agreement this fee is actually there: "Upon sale of item, a 2% fee will be charged on the selling price to cover insurance price." That is just another one of those revenue generators, like buyers and sellers fees. The buyer and seller are BOTH charged for the same thing. As I said, I'm OK with it. They did well for me.

 

I'm embarrassed to admit that I was in the same boat as the OP several days ago. I'm embarrassed because my gut told me to avoid this auction house. When I read my invoice (in € calculated as of the sale date, despite my having bid in £), I hit the roof. I've never had an auction house try to push exchange rate risk onto me before. I wrote to them requesting an invoice in GBP. They sent me one today, but pointed to their (revised) terms of sale to justify their previous actions! I need to consider my next steps.

 

@Carausius Unless you really want the coin, I would kick it back to them. Surely the terms of sale should be as when you bid.

 

Agreed @Pishpash. Maybe I wasn't clear in my last post. Today, they sent me a GBP invoice matching my bids. I will pay it, of course. I'm considering other steps, like complaining to Sixbid, etc.