An Antique Car Sales Agent: What is Reasonable?

[OldChargerGuy]

Greetings, Car Dudes & Dolls.

 

Working part-time as a limousine driver for the past 20 months, I have met a few folks that have asked me to sell their car. My clients are typically professionals earning high incomes, and either very busy with their careers or heartily enjoying their retirement. They don't want to bother with the process of selling a car, or they simply don't like to do it. I enjoy the car selling and buying process, so I have accepted and sold two very nice automobiles in the past year. A third car is waiting for me to follow-up with its owner. 

 

During our travels, these clients learn of my interest in antique cars. Sometimes they learn that I'm restoring a car and that it's very expensive; that's why I work part-time in my retirement. When they ask me to sell their car, they know up front that I'm not doing it just as a favor alone. It is a favor, but I want to earn money to help pay for my antique car. I'm not an experienced or licensed car dealer, just an automobile enthusiast. In West Virginia, a citizen may sell up to six cars per year before a dealer's license is required. So, here's the question is more detail: What is a reasonable sales commission to be earned when acting as an automobile sales agent? 

 

The sales commission was no issue with the first car, a 2000 model Mercedes, low miles, one-owner, near pristine condition. But it could only attract $8,500. The second car sold a few weeks ago, and I'm wondering if I charged too much. It was a rare 1972 model, European, one-owner, well maintained, original condition. It fetched $43,000. I thought 15% of the sale price was reasonable, but taking $6,450 for my work appears questionable. Indeed, the amount of my commission leaked to the buyer, and he is livid as if he was overcharged for the car by 15%.   What say ye?

 

[69merc]

Whatever you charge, if you quote it right up front with your customer, and he accepts, you're all good!

[charlespetty]

We have charged 15% commission for the last several years with no issues.  

[George Smolinski]

15% with virtually no overhead seems awful salty. I can understand someone like Matt H. getting 15% because I assume he has the car(s) on a showroom floor, does some sorting out if needed, etc. If you're selling as an agent for the owner, would you disclose your commission if a potential buyer asked? What do you do if the potential buyer wants to know who the owner is, asks to see the title to make sure it's good, or wants to speak directly to the owner? Then, what would you do if the potential buyer cuts you out of the deal by working out their own deal with the owner?

[bryankazmer]

The buyer paid what he thought the car was worth.  How much of that is commission is irrelevant.  He’s angry because he now thinks he negotiated poorly.  Not your problem

[pkhammer]

  I have a couple of friends that do this on the side as part of their own hobby/business and I think they both charge 10% commission which I think is fair if you are not actually doing any work to the cars other than taking photos, making listings and fielding questions from potential buyers. If you are doing work to the cars (detailing, etc) or storing the cars perhaps a larger percentage is justified.

[zdillinger]

The buyer wasn't overcharged by 15%. He paid a price he was happy to pay. 10-15% commission is fair in my opinion. 

[1935Packard]

For the *buyer* to complain about a commission paid by the *seller* is just exceedingly silly.    Selling high-dollar items often involves some sort of intermediary to bring the seller and buyer together, whether it's an auction fee or an agent's fee. 

 

I wonder if this person complains when he buys a new car and later learns that the salesperson who sold him the car earned a commission.

[alsancle]

2 hours ago, charlespetty said:

We have charged 15% commission for the last several years with no issues.  

Really?

[Trulyvintage]

Who “ leaked “ the price

of the commission ?

 

If it was the Seller - that was

poor judgement on their part.

 

An express non- disclosure 

agreement is what you need

when selling vehicles.

 

Jim

[John_S_in_Penna]

One well-reputed restoration shop told me

they would sell a $100,000 car, through their

extensive contacts, for a 4% commission.

[Robert G. Smits]

You may wish to place a maximum on your fee or use a sliding scale. It is possible more work to sell low priced cars than an expensive desirable vehicle. Disclose everything up front and have a signed contract with the seller. 

[28 Chrysler]

Was the seller happy?

The buyer payed what was a fair price to close the deal. Now buyers remorse has kicked in, that's all.

[alsancle]

15% on 43K is a strong commission.    Did you store and present the car?  Cleaning and detailing?   Photography?  Make sure all the paperwork was correct and matched the tags on the car?   How much inspection and representation did you do?  How many miles did you put on the car yourself?  If the deal unwinds for some reason will you stand behind it?   Selling cars correctly is a very hard job.   Most cars are junk and most people buying them don't know what they are doing.

 

 

[Ed Luddy]

On a higher priced car you need to adjust your per cent rate. Buyer has a good reason to be angry. For your lofty commission are you doing an warranty work? Anything other than middling the deal? Do you have a retail shop with overhead?  How much time and money did you spend to get it sold? Advertising costs?

[Bhigdog]

Seller got his car sold at a price he was willing to accept. Buyer got the car he wanted at a price he was willing to pay.        An enterprising young man used his knowledge to make it happen.

So........exactly what is the problem here?........bob

[charlespetty]

5 hours ago, alsancle said:

Really?

Yes, really.  We deal mostly in low price vehicles where 15% isn't much.  

[wayne sheldon]

1 hour ago, alsancle said:

  Did you store and present the car?  Cleaning and detailing?   Photography?  Make sure all the paperwork was correct and matched the tags on the car?   How much inspection and representation did you do?  How many miles did you put on the car yourself?  If the deal unwinds for some reason will you stand behind it?   Selling cars correctly is a very hard job.   Most cars are junk and most people buying them don't know what they are doing.

 

 

 

It really is all about how much you do to make the sale happen, and get the price you get.

Did you detail the car? Did you take it to a detailer and handle the process? (If yes, add 10 to 25 percent to what they charged depending upon how much effort was required on your part?)  Which in turn leads to did you take the car various places or have other work done to the car? Did you store the car? Were you the responsible party while you had the car (insurance etc?)?

Did you photograph the car? Where did you take it to be photographed?

How much is your experience and knowledge REALLY worth? Are people you know and can contact really adding likely sales?

 

Do you choose or pay for the advertising? Again, who is liable for costs or statements made?

So many questions to be answered.

 

Less than 5 percent might be plenty if all you have to do is make a few phone calls. Even for a low dollar car. A medium price car that needs a lot of help to sell, even 25 percent might not be enough!

[Bhigdog]

So the amount you are paid should be directly related to the amount of effort you expend????

What a quaint notion.......bob

 

Edited July 10 by Bhigdog (see edit history)

[1935Packard]

Fantasy Junction, a classic car dealer in Oakland CA, has its consignment fees on its website, together with a list of things that they will do.  From the website: 

 

https://www.fantasyjunction.com/sell-your-car

 

 

And things they do to sell the car:

 

Edited July 10 by 1935Packard (see edit history)

[Reynard]

My wife and I owned a consignment sales company for over 15 years and always charged the owner/seller a flat 10% commission on all sales, large and small, by signed contract.. In addition, the seller paid a monthly storage fee per square foot until the unit(s) sold or were removed. Any pre-sale service to the item(s), of course with the owner's approval, was added to his cost of sales. Our expenses were the sales building, part-time help, minimal advertising, and good will. We collected the sales tax from each sale and paid the respective government agency. We insured our building and our property within it, but the equipment owners either provided their own insurance or went without. Our policy was always "as-is, where is" and was always stated plainly and openly to avoid any come-backs. Any price negotiation was between buyer and store, and store and equipment owner. Never the twain would meet. There was never an occasion or need to discuss/disclose our commission agreement with customers, unless they wished to likewise consign.

This worked out very well for us and the business, including real estate, was sold for a healthy profit when we decided to retire. 

I think the OP and some of the responses are making more out of what he's trying to accomplish than is warranted. He is a facilitator on an occasional basis, and not a real business. It's should be common sense and honest salesmanship - not rocket science or brain surgery.

 

 

 

[prewarnut]

I used a broker to sell a ~70K car about 6 or 7 years ago. I didn't want the hassle of doing it myself at the time. I think the fee was 10% off my side. I don't recall if the buyer would have any fees. This process, like the ad above was first, transparent up front, and then also included similar "benefits" to the seller: detailing, repair of any minor trim stuff (the guy had connections with this make of car), photography, website advertising, secure storage (per state law the car could not be still used by the seller during the process), oil change, networking, "clout" - having many similar transactions before, and paperwork. Basically I just waited for my check.