risks of an auction

[black69]

I thought it may be worth mentioning, a guy recently brought out some Boss mustangs he had (one was a 429) for sale at auction. Auction company chose to buy them outright, which kinda caught me off guard they would do that, because to me its like cheating, you are not letting someone have a shot at a big upside.

To the auction house's defense, the owner could at anytime, sell the cars before they hit the auction, and in that case the auction house would only collect a listing fee. I can't blame them for balancing risk vs instant reward, if a customer undervalues a car to them. I would probably do the same thing (offer to buy outright).

Seller beware, I guess. If you want to make sure your car goes through the auction to expose what its really worth, tell them your reserve is really really high. It is likely unfortunate, people out there still have no clue on survivor cars potentially being worth sometimes more than restored. Many still I fear have it backwards due to lack of knowledge of how things have changed in that regard.

This may be why some of these guys that own auction companies have some of the best cars on the planet.

[markinnaples]

<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: black69</div><div class="ubbcode-body">...This may be why some of these guys that own auction companies have some of the best cars on the planet. </div></div>

I totally believe this. Look at Craig Jackson's collection. I sincerely doubt that he paid auction prices for the cars in his collection. Not being critical because he's in that business and that's a major perk, but you do make a good point about being very aware of your car's value.

[Canuck]

The auction house is entitled to more than the listing fee. Last year I pulled my Hurst Olds from Mecum Monterey because a buyer stepped forward and made me an offer. Mecum were entitled to 16% of the reserve unless I consigned a car of equal value, which I did. The second car did not make reserve so at that point I had fulfilled my obligation.
Paul