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Some of the "Cons" of selling at Auction

 
Old 02-11-2019, 06:12 AM
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roadster65
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Default Some of the "Cons" of selling at Auction

Thought this was an interesting article for Forum Members to peruse sort of like an inverse of Caveat Emptor only Seller Beware

https://www.guyswithrides.com/why-tr...lectible-cars/
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Old 02-11-2019, 07:08 AM
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Frankie the Fink
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If she was that attached to the car, still, she shouldn't have sold it...
I've always thought real estate agents commissions were high, they pale in comparison to the percentages lawyers and car auctions charge.
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Old 02-11-2019, 08:44 AM
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biggd
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There's no guarantee, no matter what venue you sell it at and who you sell it to, that they won't turn around and resell it. That's the new owners right when he turns over his money. It's never going to mean the same to someone else as it did to her.
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Old 02-11-2019, 09:38 AM
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Why do auction houses take a percentage of the sales price from both buyer and seller? To make money. That’s why they are in business. They provide a service. That service isn’t free. We all know this.

How much of a buyer’s audience do you achieve posting a for sale advertisement in your local paper vs exposure through a known auction house?

When it’s time to let it go, let it go. Take your money, walk away and don’t look back. If you aren’t able to do that don’t sell the car.

Sentamentality is highly overrated. And it doesn’t equal $$$$$$.
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Old 02-11-2019, 09:58 AM
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It sounds to me like Mecum delivered exactly what they promised with no hidden charges or surprises.
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Old 02-11-2019, 10:38 AM
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The fact that charges aren't hidden doesn't make them less onerous...

Its fine if you're OK with that, but I'd rather sell my cars here or elsewhere online for a few hundred bucks...

The one time I used a consignment shop (for my 61) I think they made less than 2% on the deal, my bottom line price was $63,200 and they sold the car for $65,000 - the difference being their "take"...
Their expense included world-wide advertising and promotion and all the paperwork and maintaining and detailing the vehicle for 8 months...

Last edited by Frankie the Fink; 02-11-2019 at 10:41 AM.
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Old 02-11-2019, 11:08 AM
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Originally Posted by Frankie the Fink View Post
The fact that charges aren't hidden doesn't make them less onerous...

Its fine if you're OK with that, but I'd rather sell my cars here or elsewhere online for a few hundred bucks...

The one time I used a consignment shop (for my 61) I think they made less than 2% on the deal, my bottom line price was $63,200 and they sold the car for $65,000 - the difference being their "take"...
Their expense included world-wide advertising and promotion and all the paperwork and maintaining and detailing the vehicle for 8 months...
Exactly.
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Old 02-11-2019, 11:33 AM
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So Haggerty price for the GTO car is $133,900. Haggerty, I believe is fairly accurate as they average the price of similar cars sold. I had my 59 corvette insured with them and the agreed price was their estimated cost. So they walk the talk.
The owner received a net of $75,000 and Mecum pocketed $18,000.

What is wrong with this picture? Seems to me like the seller got taken. Both the buyer and Mecum got their moneys worth. That is my observation with auctions, the seller most of the time is the one that finances the operation. There has to be a better way to sell your car than just giving it away. I do not buy that the auction has to do the advertisement and consequently they have to charge you and exorbitant rate. They have hundreds of cars so they have volume which I am sure translates to very low advertising cost to them. Sellers be ware read the fine print and do your due diligence when you are selling your car. Selling via auction might not be in your best interest.

https://www.corvetteforum.com/forums...n-auction.html
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Old 02-11-2019, 11:52 AM
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That link is nothing more than an advertisement for Guys With Rides. The last paragraph makes that very clear.

As a seller, you know exactly what you are getting in to with an auction site. There are no hidden fees, there are fake bids, and there are people who will play on your emotions. Understand what you are entering, determine the venue that is best for you, and do the best you can. That might be a no reserve auction where there is a clear end point, an auction with a reserve where you can determine whether to drop the reserve or not, a consignment house or selling it yourself on line or with a sign in your yard. Pick your poison, but don’t whine about the result.
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Old 02-11-2019, 12:27 PM
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My experience selling a car with mecum totally sucked. I was warned by others on this forum that time across the block would be approx 60 seconds and they were right; unless a bidding war breaks out, they will drop the hammer as quick as possible, there was no banter by the auctioneer to push the car. After the sale they:

Let the buyer drive off with my licence plate on the car!
They would not mail me the check by registered mail, only by standard USPS, that is their policy! Can't spend $5 after all their fees!! To get my check I had to go back to the auction after the buyer paid mecum.

If your car isn't super special, mecum will be minimum seconds across the block, they don't give a crap.
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Old 02-11-2019, 12:29 PM
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Originally Posted by Duck916 View Post
It sounds to me like Mecum delivered exactly what they promised with no hidden charges or surprises.
Yeah this article makes it sound like they just uncovered some news.

In case nobody knows, the buyer and seller pay a premium.

Who knew providing a venue like that isnt free? Next thing you know, they will charge you for Saturday afternoon TV slots.

And that breakdown? $4000 for shipping and another $2000 in expenses? I bought a car in B/J Scottsdale last month and Reliable shipped it to my door for half that, in ten below zero weather.

I think the cracks about Dana Mecum and Craig Jackson make this sound like more of a personal hit piece than some revelation of unknown information. Next up, Bernie Madoff is a bad investor.
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Old 02-11-2019, 12:48 PM
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If I had a 63 Z06 or an original Ford GT-40 then I would go the auction aiming for the deep pockets.
For most of our sub-$100K cars (more like 1/2 to 2/3 of that) there are other venues that yield decent results with more reasonable costs.

Purely my own opinion....for selling...

For buying, I'd rather pay 10% to one or two of the well-know forum members that KNOW the poop out of these cars as a finder fee to find exactly what I want..
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Old 02-11-2019, 12:49 PM
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Originally Posted by vettebuyer6369 View Post
Yeah this article makes it sound like they just uncovered some news.

In case nobody knows, the buyer and seller pay a premium.

Who knew providing a venue like that isnt free? Next thing you know, they will charge you for Saturday afternoon TV slots.

And that breakdown? $4000 for shipping and another $2000 in expenses? I bought a car in B/J Scottsdale last month and Reliable shipped it to my door for half that, in ten below zero weather.

I think the cracks about Dana Mecum and Craig Jackson make this sound like more of a personal hit piece than some revelation of unknown information. Next up, Bernie Madoff is a bad investor.
A bit off topic but next is how the government stole your money because your return is less this year. DUH, it means that when you are getting YOUR OWN MONEY back you overpaid less than before.
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Old 02-11-2019, 01:42 PM
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Originally Posted by Frankie the Fink View Post
The fact that charges aren't hidden doesn't make them less onerous...

Its fine if you're OK with that, but I'd rather sell my cars here or elsewhere online for a few hundred bucks...
My sentiments exactly.
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Old 02-11-2019, 01:56 PM
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Years ago (more than 30) when I used to go to auctions, auto and general merchandise, there was no such thing as "buyers premium". I got out of it for about 20 years and then went to a small local merchandise auction. Went to pay for the items and it's more than I had bid. That's when I found out about buyers premium! I haven't been back and don't go to auctions with buyers premium. I've noticed even some of the government auctions have buyer premiums now. I've heard at least one auction that doesn't have a buyers premium. Don't remember the name but it's the one that sold the big collection from Iowa? a few years ago. They may have changed by now
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Old 02-11-2019, 05:09 PM
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The article is total BS. A sentimental sale by the lady regardless of the net proceeds. Would it not have been sentimental just the same if she would have pocketed $200K? I can guarantee you she would have been more disgusted dealing with tire kickers and wanna be's that don't have two nickels to rub together if she would have advertised the car for sale. I prefer selling at auction, I don't have the time or patience to deal with all the BS you get from classified advertising.
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Old 02-11-2019, 05:20 PM
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Some of the 'cons' of selling at an auction:

Well, for me, the number one problem is having to go to the auction. No interest in doing THAT.
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Old 02-11-2019, 08:19 PM
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My sale was 1 hour long no fees .
Lististed it took it off .
The Art of the Deal .
She had 18,000 dollar fee that car could of sold on its own .
She didn't know .
When people pass all of the offence on sale is pretty much out the window.
Its like a one way sale .
My buddy passed his daughter sold all his cars in two days .
If he knew that it wouldn't happen .
We talked thru the years what the cars were worth.
Two days before he passed he told me I should go to Vegas on all on Red.
He was a fighter till last day .
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Old 02-11-2019, 09:38 PM
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Don't sell without a reserve. Pretty simple. You can always remove it as the auction continues.

A a good friend of mine, who once owned the famous Harley Earl SR 2, told me: "Dan, I am totally in love with all my cars (and he had some great ones) but at a certain price, I don't love them anymore..."
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Old 02-11-2019, 10:20 PM
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Here is my question? She is from Kanas City and had the car restored? I will bet lots of people in her area knew about that car and would have paid her more for it without the hassle of shipping it to Florida and all of the auction expenses. That was definitely the wrong auction to sell that car at? Too many cars, too many days, too many choices, equals a buyers market.
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