1,000 Mile F1 being Auctioned - How Much?

[100 IAN]

At Monterey this weekend they are auctioning a 1,000 mile F1

http://www.goodingco.com/vehicle/1995-mclaren-f1-2...

Guide is $12M - $14M

Just for fun, how much does everyone think it will make?

Closest to the actual published figure (inc' buyers premium) wins the right to feel smug and warm inside.

I'll start with a possibly controversial $11,500,000

NB. All guesses in $ not £'s

[100 IAN]

Well, well, well.

$10.75 hammer + I think 10% commission = $11.825

Well done Toohuge for guessing $11.8

[100 IAN]

Maybe a bit controversial but i'll say it anyway, and bear in mind that I wasn't at the auction and so didn't see how the proceedings went, but............

An auctioneer is well within his rights to take phantom bids at BELOW the car's reserve, and reserve is often BUT NOT ALWAYS the lower of the estimate range.

So IF the reserve was $12M, the $10.75M 'bid' MIGHT have been fictitious, as with commission it would have been $11.825 and hence less than the reserve.

Now if there had been another bid it would in all probability have been $11M (as I said, I wasn't there and didn't see the bidding increments but in my experience it is likely to have been $11M) then with commission added the price would be $12.1M which would have been over the reserve.

............ a lot of IF's and assumptions I know, but in my mind the best bid may well have been south of the claimed $10.75M

[100 IAN]

Justayellowbadge said:

Reserve doesn't include commission.

Technically true but auction houses will in most cases waive part of their commission to ensure car sells.

If it doesn't sell they make nothing and it looks bad that the car didn't sell.

If they 'hypothetically' waived part of their commission in this example the car would have sold, the auction house would have made commission from the seller + the $100,000 over the $12M reserve.

NB. At that level its likely that the seller had agreed better terms such as they received the buyer's commission, in which case the auction house would 'only' have made $100,000 and the benefit of the car selling, which would have been a feather in their cap.

Having now failed to sell the car won't be something they'd be proud of. When trying to secure cars for future auctions the % of cars they've sold is a major thing they bang on about. I don't expect the next F1 at auction to be entrusted to them, but if this one had sold then it quite likely could have been.


You need to trust me on this one, I've bought and sold at auction at less than reserve with two different auction houses doing exactly this.

Neither buyer or seller is disadvantaged and whilst the auction house doesn't make quite as much as they would have liked to they take the view that making something rather than nothing and getting a car sold is best for them and the buyer & seller.

[100 IAN]

Adam B said:

So theoretically they may have been no proper bids at all?

I still find it odd that phantom bids by the auctioneer is an acceptable practice - does it happy in all types if auction eg selling property or antiques? Is the practice clearly stated to newbies?

I've had experience of car and property auctions and it happens in both.

It is not made clear to newbies (or anyone else for that matter) but over time attending auctions you begin to see certain occurances in the same way you learn certain phrases [and their meaning] or actions