The change to online events...

[8E45E]

Posted by Matt Harwood

 

They will likely be online only. Many auction houses such as RM have already adopted to an online format and are enjoying some success. I think the business model will change and they will be hesitant to go back to moving all the cars to one place and making all the people come to the cars. There are the issues of inspection, of course, but they seem to have that handled by making the cars available to interested parties prior to the auction. Less overhead for the auction companies and they can push even more of the liability onto the buyers and sellers. That's a win-win. They may still have their biggest events like Scottsdale and Monterey each year, but I think you will see them shrink in scale with many of the cars offered remaining offsite. I bet Scottsdale 2021 will be off the table if it isn't already.

 

COVID is going to change a lot of things in the world, some for the better and some for the worse. I think "going back to normal" isn't going to happen 100% and there will be a different definition of "normal" five years from now.

 

We are already seeing some changes, especially with the 'work at home' mentality.  The wife of someone I work with has already been informed much of the staff won't be going back to work in an office building, even when this pandemic is finally over.  And when the lease is up, they are only going to renew space for two floors from the three floors in the downtown office tower they currently occupy.  

 

Besides office buildings, landlords can expect declines for renting sports stadiums, convention centers, etc., for conferences, assemblies, and other events with Zoom and Skype having proved viable for interactive presentations, eliminating the need to travel, and rent hotel rooms.

 

Of course, 'hand-on' events like swap meets, trade shows, and the like where buyers want to see and touch potential purchases will pick up once again.

 

Craig