Ron Miller

Short Answer to "Why would you sell at an auction . . . . ."

I sold at Smith Auctions because I could get net $50,000 for my car there and was unable to sell it on my own for that figure, even after advertising it widely to include listing on this forum. Not Red Rob, I've bought a few cars from Glen Baugus myself. Nice fellow and a friend of mine. Glen actually helped me with my sale through Smith Auctions. I agree that Smith also has some pretty decent autions and prices on cars for sale. Sherman Smith was an old friend of mine "back in the day" and I helped him with a few auctions in past years before his passing. (BTW, I got my BSAE from ASU in Jonesboro back in 1970, still have friends and relatives in the area).

As far as how payment is made to the seller, it depends upon the auction service. Smith Auctions is one of the better models for the seller, Smith cuts a check to the seller from their account the day of the sale. If you're in a rush, usually takes no more than an hour or so after the hammer falls to get the final paperwork finished.

Smith used to have a once or twice yearly sale in Jonesboro back when they were doing annual sales in Dallas, Oklahoma City, and a few other wider ranging areas. I don't recall them having a Jonesboro sale in recent years, could be wrong. But, they still run a LOT of vehicles through the ring at the present sale locations

MOXIE62

In Paducah, ky Smith has an auction every year. I went few times, not to buy just look. I may be wrong but I was under the impression that what ever car sold for, Smith got 10% above sale price from the buyer. Do not know what the entrance fee is or if there even is one.

Ron Miller

This is a screenshot from Smith Auction's current web site, the website address is also shown in the screenshot. I don't think I caught all of the Fee structure, as I'm recalling it shows a no reserve fee commission of 4% and perhaps a lower ring fee. This is the buyer's fees, you can check this and other items at the website.



In my case the bid price stopped just short of reaching my reserve price. They asked if I wanted to remove the reserve stating that often the bidding would go higher after removal of a reserve price. I didn't wish to however. After checking with a ringside helper with a handheld calculator, Sherman removed the reserve himself, the auctioneer continued but bidding never reached any higher and the car sold at the point bidding had previously stopped at.

The reserve auction fee was $350, and a non-reserve auction fee was $250. After the sale I saw that the auction service had checked the percentages with the calculator and decided it was better for them to take a portion of the buyer's fee and use that portion to meet the reserve figure of dollars in hand that I had stated that I had to have for the sale, rather than proceed with a "no sale" of the car and collect the $350 reserve auction fee. Also, since the reserve had been removed (although not by me, as stated above) my auction fee was only $250 for a no reserve sale rather than the $350 for a reserve auction sale. So much the better for me . . .

I don't know if this is a common occurence at these auctions or if Sherman only did this as a favor to me. I rather suspect perhaps some of both . . . .

mrtexas

IMHO you have a screw loose.

SledgeHammer 2.0

[QUOTE]
Originally Posted by 68hemi Yes he is 18% handicapped compared to selling the same car to a buyer privately IF you consider that the buyer is absorbing the sellers 10% and paying the buyers premium. In fact that is not the case. In order for the buyer to net the same and the buyer has no EXTRA cost the seller has to discount his price 10% in order to net the same as if selling at auction. So, you have to look at it this way, in real estate when comparing using an agent verse for sale buy owner, the seller says he wants to "save the commission" and the buyer says he wants to buy direct from the owner so he can "save the commission." Both parties CAN NOT save the same commission. [QUOTE]

I can't even figure out what he is saying...

68hemi

[QUOTE=SledgeHammer 2.0;1599032753][QUOTE]
Originally Posted by 68hemi Yes he is 18% handicapped compared to selling the same car to a buyer privately IF you consider that the buyer is absorbing the sellers 10% and paying the buyers premium. In fact that is not the case. In order for the buyer to net the same and the buyer has no EXTRA cost the seller has to discount his price 10% in order to net the same as if selling at auction. So, you have to look at it this way, in real estate when comparing using an agent verse for sale buy owner, the seller says he wants to "save the commission" and the buyer says he wants to buy direct from the owner so he can "save the commission." Both parties CAN NOT save the same commission. It is really quite simple although the OPs original post prompted several different directions.

So I will put it as simple as I can.

If you are at auction selling a car that the seller pays 10% to sell and it sells for $100K How much money does the seller put in his pocket to take home? $90K

If you are the buyer for the above car how much money do you have to take out of your pocket to buy the car? $108K

The OPs original question from post #1
"So if I wanted to sell my car with reserve, which is the only way I would do it, I am 18% +$575 handicapped"
In terms of what he puts in his pocket NO, however when comparing the difference between selling at auction verses selling the same car privately You CAN look at it as a 18% handicap when considering what the final outcome is for both buyer and seller IF the seller is willing to accept the same amount he puts in his pocket from auction which in turn benefits the BUYER by 18%.

Things got further confusing when other members in the thread brought up weather the selling price of the car at auction INCLUDING the buyers premium effected the values of cars in general.

I hope this makes it a little more clear.

I was in the car business most of my life and Have also bought and sold probably 150 sports, muscle, antique and special interest cars over the last 50 years and think I have a pretty good handle on all of this but most of this is simple common sense reasoning.

SledgeHammer 2.0

That's with the big assumption that the example could bring 108 in the open market.

IF I take what I believe is an $100K car to an auction and they fetch me $125K, do I count that as an 22.5k loss or a $12,500 win?

68hemi

First of all the $100k is simply an example.

Using your example and if you valued you car at $100k and it brought $125k at auction and you netted $112500. how could you consider fit anything but a win with an extra $12500. in your pocket?