Barrett Jackson a Real Scam
Thread Starter
Instructor
Joined: Jun 2004
Posts: 198
Likes: 0
From: Long Island NY
Barrett Jackson a Real Scam
I had the feeling that Barrette Jackson Auction was a Scam with those phony pump and dump prices for some of those silly over priced cars. Barrette Jackson kind of screwed themselves by airing that silly contest they are running on speed vision. Have you noticed that most of the teams are loosing money on most of the cars they bought and auction off? The looses would have been much greater if the teams had to pay commission and all the associated taxes. Once again it has been proven it is almost impossible to make money on a so-called classic cars. Buyers be aware of the Auction pump and dump whether it’s at Barrett Jackson or any other auction.
Last edited by Rolm; Jul 22, 2004 at 06:13 PM.
Team Owner
Joined: Feb 1999
Posts: 34,453
Likes: 665
From: Republic of Texas
Money can be made in classic cars without question, I think they just try to make it look easy. The cars that bring the "Big" money are rare cars w/ full documentation or has an extensive race history.
Burning Brakes
Joined: Oct 1999
Posts: 1,041
Likes: 1
We can go into all the issues with BJ, but the major issue was that their Palm Beach Auction simply didn't bring the high-dollar, price insensitive buyers they had hoped for. Scottsdale has become a social scene...with people outbidding eachother to establish themselves as "big spenders" with big incomes.
It's actually very easy to make money on collector cars, but not by buying from dealers. Also, they should know better than to buy small market cars (Rebel Machine, El Camino, a drag racer) and cars that are known dogs among marque collectors (308GT4 is considered the least desirable Ferrari ever made!)
They need to stop buying cars they like, and start buying cars that sell well.
The BJ show is definitely a joke. They specifically try to make cars seem worth much more than they really are.
And as far as rare and documented cars the only ones making money...at BJ Scottsdale this last year, an "original" '69 Z-28 sold for six figures. Curiously, the same car was sold at BJ the previous year for $40K without rear disk brakes and the hi-po manifold that appeared on the car this year. Crazy.
It's actually very easy to make money on collector cars, but not by buying from dealers. Also, they should know better than to buy small market cars (Rebel Machine, El Camino, a drag racer) and cars that are known dogs among marque collectors (308GT4 is considered the least desirable Ferrari ever made!)
They need to stop buying cars they like, and start buying cars that sell well.
The BJ show is definitely a joke. They specifically try to make cars seem worth much more than they really are.
And as far as rare and documented cars the only ones making money...at BJ Scottsdale this last year, an "original" '69 Z-28 sold for six figures. Curiously, the same car was sold at BJ the previous year for $40K without rear disk brakes and the hi-po manifold that appeared on the car this year. Crazy.
Instructor
Joined: Nov 2002
Posts: 194
Likes: 0
From: Irwindale Ca.
The "Pump and Dump" you see on the show is no different than what can be found at any new or used car lot.
Granted B & J is using this as a vehicle to promote their business, but cant blame them for that.
By chance I met one of the L.A. Team gentlemen and we talked cars for nearly an hour. He seemed to be very genuine and a true collector as well.
But when the smoke clears, the cars they sell at these auctions are most all of graded 3 and 4 quality. Anyone owning a grade 3 or 4 car knows what they have and what the car is worth. They use the auction as a way to get the car out to be seen by the people that are true buyers and the money to buy their dream car.. or by restorers that have searched and found "Deals" that still exist. Such as these teams are trying to do. I find it entertaining and true to its concept for the most part..But to call foul on these teams seems unfair considering how rare it is to find a quality and interesting car for sale cheap enuf to make a good profit on..
But, the L.A. team did find a C3 in Vegas that they bought from a guy that was in dyer need They believe will make a very good profit for their charity. That show hasnt been on yet but will be soon I believe.
Granted B & J is using this as a vehicle to promote their business, but cant blame them for that.
By chance I met one of the L.A. Team gentlemen and we talked cars for nearly an hour. He seemed to be very genuine and a true collector as well.
But when the smoke clears, the cars they sell at these auctions are most all of graded 3 and 4 quality. Anyone owning a grade 3 or 4 car knows what they have and what the car is worth. They use the auction as a way to get the car out to be seen by the people that are true buyers and the money to buy their dream car.. or by restorers that have searched and found "Deals" that still exist. Such as these teams are trying to do. I find it entertaining and true to its concept for the most part..But to call foul on these teams seems unfair considering how rare it is to find a quality and interesting car for sale cheap enuf to make a good profit on..
But, the L.A. team did find a C3 in Vegas that they bought from a guy that was in dyer need They believe will make a very good profit for their charity. That show hasnt been on yet but will be soon I believe.
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Le Mans Master
Joined: Mar 2002
Posts: 7,456
Likes: 2
From: Coming home from Luckenbach Texas
I don't see what the problem is. 
Anyone who's watched the auctions knows that most sellers lose money, and only a few make money. Pay attention and you'll hear that so-and-so spent $80,000 restoring the car, but it sells for $30K. Anyone who gets into this hobby thinking they can make money buying and selling classic cars needs psychological examination. Only a very few rare folks will succeed. 
If you wanna make money in the car hobby, change your last name to Edelbrock, and open a performance shop!
Anyone who's watched the auctions knows that most sellers lose money, and only a few make money. Pay attention and you'll hear that so-and-so spent $80,000 restoring the car, but it sells for $30K. Anyone who gets into this hobby thinking they can make money buying and selling classic cars needs psychological examination. Only a very few rare folks will succeed. If you wanna make money in the car hobby, change your last name to Edelbrock, and open a performance shop!
Race Director
Joined: Mar 2001
Posts: 11,322
Likes: 1
From: Living in the Hartland
The whole show concept is a little fishy to me, a whole gang of guys and cameras show up to buy a car from you, if you sell it you end up on TV, if not they just wasted your time. The dealers sell the cars so they get free advertising while the private seller gets to be 'famous' on TV. I wonder since the procedes are going to charity if the seller can write off the diff between the fair market value of the car wand what the sold it for? Probably lots going on behind the scenes they don't let you in on.
Thread Starter
Instructor
Joined: Jun 2004
Posts: 198
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From: Long Island NY
Originally Posted by Fevre
The whole show concept is a little fishy to me, a whole gang of guys and cameras show up to buy a car from you, if you sell it you end up on TV, if not they just wasted your time. The dealers sell the cars so they get free advertising while the private seller gets to be 'famous' on TV. I wonder since the procedes are going to charity if the seller can write off the diff between the fair market value of the car wand what the sold it for? Probably lots going on behind the scenes they don't let you in on.
Well said that was the point I tried to make. Barrett Jackson in no different then any other auction " buyer be ware" Those prices that are bid on some of those cars may be a scam, were the so-called buyer keeps bidding and bidding on a car knowing that it's just for the TV show eventhough he wins the bid there is no actual sale.
Team Owner
Joined: Jul 1999
Posts: 26,545
Likes: 46
From: Huntersville NC
Are we talking about the show, "Carsearch" ? Or the BJ auctions in general? It was clear that some of the carsearch cars were bid up beyond market value because the bidders knew the money was going to charity. I don't have a problem with that, although it does invalidate the premise of the show a little bit, ie, that there is a competition based on finding "undervalued" cars and selling them at true market.
And if you are interested, one of the Carsearch team members has been posting in the C1/C2 section, if you have questions for him.
And if you are interested, one of the Carsearch team members has been posting in the C1/C2 section, if you have questions for him.
