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What's your opinion of car auctions?


KevinVal

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I was a worker at several well-known auctions in the '70s and '80s and have seen the dirty underbelly of the auction world. That's not to say there are no quality auctions, because there are. If I were in a position to buy or sell collectors cars at auctions, there are only a select few auction companies I would patronize.

 

In my opinion, a lot of really good and desirable cars never see an auction block, although there are many that do, especially at the high end of values.

 

And, as the man said, the house always gets its share if a car sells; it never loses.

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I don't think there is any mystery to any of it.    As a seller,  using an auction company will cost you approx 15% of the gross.   Countering that is the potential to have a higher sale price than if you were selling privately because of the marketing, exposure and "auction fever".   If you don't want to auction it, you can use a dealer which will be closer to 7% of the gross, also with the potential for a higher sales price.   Or finally, sell it on your own.   For the most part,  the latter will almost always realize a lower price for a variety of reasons.  The biggest ones being most people are horrible at selling cars.

 

As a buyer,  there are some reasons to buy at auction.   Biggest one being access to cars that are not usually available,  or being able to see and touch a bunch of stuff in one place.   Also,  with the higher end houses like Gooding and RM there is a certain amount of vetting going on.   They don't want deals to unravel after the fact because of misrepresentation.   So there is a little more protection for the buyer.   If I was buying a 65 straight six mustang coupe,  I can't think of any reason I should buy it at auction.

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11 hours ago, gwells said:

I was a worker at several well-known auctions in the '70s and '80s and have seen the dirty underbelly of the auction world.

...there are only a select few auction companies I would patronize.

 

Can you tell us the ones that, in your experience, are preferable?  It never hurts to give a good company some exposure.

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I have seen some average car owners get roped into listing their cars for auction. The instances have been sad. If I had offered them the amount they ended up with they would have been insulted.

 

I have been to a few auctions. Bidders are generally sectioned off into their own area. Too many dealers or "regulars My observation was two dealers working together to pull a rube into the bidding. If they didn't get him the car showed up at the next auction.

 

Detailing the passenger side is a telling comment. One year at Hershey we noticed a group of GM A body cars cross the block. The two door hardtops were displayed with doors open, pillared two door sedans had the doors left closed and looked like hardtops.

 

Over the years I have asked on the Forum if anyone has bought or sold at auction and how the experience was. Few if any have made specific replies.

 

I would never auction a personal car. I know how much I want and it would be very hard to believe my estimate would be exceeded. The few times I have been tempted by an auction "bargain" I have passed and one one else wanted the dog either.   !! I did buy one old lizard, brought it home, and told my wife I bought it for her. She said it was ugly. It was so bad I only made $400 or $500 on it.

 

The best advice is to be more methodical. Decide what you want and join the marque club. Look for an aging member who has the car you like and uses it a lot. Go to cruises nights and watch for cars that appear every week. Ask if they are for sale.

 

Don't worry about Fat Cats. Most of them are attending on a blank line of credit. If the cash swipe machine quit working you might be the only one in the place that pull out a $5 for a cold drink (been there done that).

 

Don't get sucked in, leave your money at home.

 

 

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I saw an advertisement for an auction recently in a classic car magazine that was directed at potential consigners.  The gist of the advertisement was that the auction house specialized in creating an environment where bidders would get caught up in the moment and would irrationally overbid for cars.  I gather that the auction house didn't expect potential bidders to read the advertisement directed at potential consigners. 

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3 hours ago, 1935Packard said:

The gist of the advertisement was that the auction house specialized in creating an environment where bidders would get caught up in the moment and would irrationally overbid for cars.

 

Actually, I would give that auction house props for being honest!

What they're claiming to do is so obviously the central purpose of the auction format, it shouldn't be a surprise to anyone.

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14 hours ago, KevinVal said:

Has anyone been to the Mecum auction in Harrisburg, Pennsylvania? Are they one of the better auctions?

 

I have not been to the Mecum auction in Harrisburg,

 but I have looked into it a bit.

 

They have plenty of cars for sale.  In my opinion, they

 are one of the typical high-cost auctions. There is a

 substantial charge ($30 at the door or $20 in advance)

 just to gain admission to sit in the audience. There is a

 $100+ fee just to register as a bidder, even if you don't

 buy anything. Their commissions are high as well.

 

As far as their ethics, I have no idea.

Edited by John_S_in_Penna (see edit history)
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On ‎7‎/‎14‎/‎2019 at 12:50 AM, John_S_in_Penna said:

The auctioneer more or less determines the minimum bid.

If there's a $15,000 car on the platform, he'll often say,

"Who'll give me $25,000?"  (I hate that.)  When no one bids that,

he will start the bids reasonably--maybe at $10,000--and 

work up from there. 

I've never fully understood this tactic... I see it at every auction I go to, whatever they are selling. Are they trying to catch somebody who's excited and can't wait to get their hand up who's never been to an auction before? I've never seen anybody take the bait and at the end of the day it just seems like a time waster that adds to a long day at an auction...

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I think you're right, Mr. Lahti.  That's another unethical

practice in my opinion.

 

At the auction company I attend (Central Pa. Auto Auction),

it seems as if the fake opening bid is always TWICE what

the car is worth.  Maybe it's also a signal to experienced bidders

of what the auctioneer thinks of a car's actual value:  Take the

introductory amount and divide by 2.  I don't think this auction

prints estimated values.

Edited by John_S_in_Penna (see edit history)
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