Kruse Auburn Auction, 3-8 Sep

Reatta Man · August 13th, 2009

Anyone going to the Kruse auction in Auburn? I haven't been in several years, but will be there this year.

Joe

Jim Rohn · August 13th, 2009

a lot of people from the FEBRUARY sale in Tucson still have not gotten paid, the news release said Kruse "should" be able to pay them after the Labor Day sale ...

so how long will the consignors from the Labor Day sale have to wait to get paid?

News article:

Kruse Auction reneges on promise

Autoweek article:

another:

http://wimzit.com/2009/06/04/public-...ng-complaints/

another:

Kruse Auction Sellers Beaware. - Page 2 - Classic Car - Where Car Lovers Click

another:

http://www.realoldspower.com/phpBB2/...3c13a101cbb1eb

another:

Kruse Auctions Trouble? - Club Cobra

another:

http://board.moparts.org/ubbthreads/...Number=5402565

another:

http://board.moparts.org/ubbthreads/...Number=5409891

another:

http://www.fordgtforum.com/forums/sh...d.php?p=197987

you get the idea ...

Reatta Man · August 13th, 2009

WOW, I was wondering why the number of cars entered in the auction seemed to be low this close to the auction date!

Joe

Dave Fields · August 13th, 2009

One wonders if all the cars going through an auction are really sold. Seems to be indicators in the past that it might be possible that some auction houses hold the car after it is "sold" to sell it themselves. Anything is possible at an auction, Anything at all.

Reatta Man · August 13th, 2009

I've sold a couple of cars through Kruse years ago, and bought several cars through their auctions here in Texas.

If the car doesn't sell, the owner can remove it immediately. If Kruse acts as a buyer, they are obligated to pay the seller within the contract limitations. If there is some funny business going on here, it would definitely be chasing away sellers, and then, eventually, buyers.

I'm not stating anything about the Kruse organization and what is going on right now. While my experiences were very, very positive, I know things can change quickly if new people take over an old organization. I hope that if they are having problems, they are temporary or easily explained.

This hobby is built on integrity first among those that support it; if anything starts putting that at risk, the hobby is in trouble, not just one auction house or dealer.

Steve Moskowitz · August 13th, 2009

Thanks for the restraint guys. Your comments are straighforward without causing this site a problem. It can be done!

Reatta Man · August 19th, 2009

According to the Better Business Bureau, Kruse has an "F" rating:
BBB Review of Kruse International in Auburn, IN

Also, their Web site claims they "expect 5,000 cars" for the Auburn auction. So far, as of this morning, 1,344 cars are listed to be auctioned off.

For a company dealing with millions of dollars worth of other people's cars, these are not good signs.

Joe

Jim Rohn · August 19th, 2009

I would not consign anything with them with that history

when they publicly state that the sellers that have been stiffed from as early as February "anticipates that everyone will get paid" AFTER their labor Day auction, that only tells me they are robbing from Peter to pay Paul, bad all around.

old car fan · August 19th, 2009

Recieved the catalog,alot of nice cars,but i think auction estimates are a bit high for the economy

jdome · August 19th, 2009

Kruse blames dealers/buyers who are slow to pay for cars they purchased for the problem. When you sign as a bidder though, you have to prove you have the funds to pay, sometimes providing a bank letter of guarantee. The seller turns over the car & title to the auctioneer before the auction. I don't understand why an auctioneer turned the car & title over to a buyer before they pay. Seems to me the seller is entitled to get his car back, that should have been held by the auctioneer, if the buyer fails to pay as guaranteed in the specified time.. Perhaps also a refund of seller's entry fees if the auctioneer failed to verify buyer's credit worthiness.

Jim Rohn · August 19th, 2009

perhaps ... that would make sense though ...

Gary Hearn · August 20th, 2009

It seems to me that if you consign your vehicle to an auction company it is accepted on a fiduciary basis. They have an obligation to safeguard the property and to generate the maximum return. The vehicle should only be released after good funds are received from the buyer and those monies should then be placed in an escrow account, not commingled with the auction company's operating funds.

If the funds are not there to pay a consignor, then a conversion has occurred and the violator should be prosecuted. To allow a company to continue when a deficit occurs places the public at risk and allows a continuation of the "robbing Peter to pay Paul" scheme. Given the information that is available, one would wonder why anyone would consign a vehicle to this sale.

Steve Moskowitz · August 20th, 2009

We have not changed our policy on vendors. However, this is public knowledge and so far people are being restrained in their comments. We appreciate that. Since the Kruse organization is making statements in public and the news media is reporting on this issue there are facts that we can deal with so at this point the thread can stay.

However, despite their announcements on their website KRUSE INTERNATIONAL IS NOT INVOLVED IN ANYWAY WITH THE EASTERN DIVISION FALL MEET IN HERSHEY

greenie · August 21st, 2009

Since the circus won't be in town, check out the jam session in the middle of the chocolate field. This year I am bringing a lawn chair.

Reatta Man · August 21st, 2009

Quote:

Originally Posted by Steve Moskowitz

KRUSE INTERNATIONAL IS NOT INVOLVED IN ANYWAY WITH THE EASTERN DIVISION FALL MEET IN HERSHEY

Steve,

Thanks for the clarification. AACA has a stellar reputation, and from what I hear about Hershey, it is a first class event. Glad to see these organizations not being splashed with any of the mud that may or may not be tossed around.

If anyone else will be at Kruse on Labor Day weekend, let me know.

Joe

tejoe · August 24th, 2009

I'm a newbie who happened to be visiting in Auburn this past weekend.

This is accurate! As of last Friday only 700 cars consigned this year (normally several thousand); not a SINGLE one on the lot yet. Who knows how many will actually show up - it appears the word is out.

Reatta Man · August 24th, 2009

Wow, Tejoe!

You may have just saved me the hassle and possible expense of a hotel room in or around Auburn.

No reason to drive for 2+ hours only to be disappointed!

Joe

LINC400 · August 24th, 2009

I frequently go to the Auburn auction but decided to skip it this year. This info makes me glad I'm not going this year. What a shame. It was always interesting just to check out all the cars even if you weren't buying. I wonder if this will be the beginning of the end of this event.

Restorer32 · August 24th, 2009

Does anyone else remember when in 1980 or so the proceeds of the Kruse auction in Atlantic City were seized by Federal Agents immediately following the auction over a non-payment/tax issue?

K8096 · August 24th, 2009

A RED-HOT MARKET IN VINTAGE CARS - The New York Times

Here's an interesting article I stumbled upon by accident. Don't know if it was posted here before or not.

Marty Roth · August 24th, 2009

K8096,

The article you specify quotes Stephen B. Chapman as stating:

"Right now you can get into a mid-1960s (Pontiac) GTO for $7,000 to $ 9,000. Three years from now it should be worth twice that"

At that price, please put me on the list for a few..............

Seriously , the article is not far off the mark, but aimed at the investor, moreso than the enthusiast.

Thanks for the reference

jdome · August 24th, 2009

Quote:

Originally Posted by K8096

A RED-HOT MARKET IN VINTAGE CARS - The New York Times

Here's an interesting article I stumbled upon by accident. Don't know if it was posted here before or not.

Now I understand this investment/hobby. I'm not collecting the right cars. I need to buy a couple Ferrari and Bugattis. I'm glad Dean Kruse was quoted in the article telling us how to invest in this hobby. Can he tell us how to get paid too?

Reatta Man · August 25th, 2009

Just remember Kruse makes his money when people sign up a car, and if it sells, when the buyer pays for the car. And of course, he makes more money when the car prices go up.

So he has to try to get traffic to his auctions, in terms of foot traffic and cars brought to the auction for sale, whether they sell or not. And saying things in a NY Times article is just free publicity for him.

I also got his catalogue recently in the mail. It looks as if, just based upon his catalogue, as if it will be as big as in the previous boom years. However, I also remember that most of the really unusual cars, such as celebrity-owned cars or very rare cars, almost NEVER sell at Kruse. Sometimes I can't help but wonder if he may even pay the owner of a Howard Huges car to bring it to the auction, knowing it probably won't sell, just so he can feature it as a highlight car to build foot traffic.

So, it will be interesting to see this year if the hype matches the actual outcome.

Joe

Restorer32 · August 25th, 2009

If you are the owner of, let's say a Duesenberg, then yes there can sometimes be certain incentives to bring your car to an auction, whether it's really for sale or not.

K8096 · August 25th, 2009

Quote:

Originally Posted by Restorer32

If you are the owner of, let's say a Duesenberg, then yes there can sometimes be certain incentives to bring your car to an auction, whether it's really for sale or not.

I know of a Duesenberg owner being approached to do this. He had no intention of selling his car, and the auction house said, "we don't care, we just want it for the publicity, you don't have to sell it" Talk about pimping out your car. Thankfully, he didnt' do it.