Why do people sell cars at auction?

Why do people sell cars at auction?

Author
Discussion

williamp

16,422 posts

214 months

Wednesday 8th May
quotequote all
From the website

"04 December 2018 20:47
I watched the auction live (I have the recording) and was completely dismayed when the hammer went and the car WAS SOLD for £9K bellow the reserve . No mention during the auction about being sold with an MOT or about the registration transfer . As far as I could see that was it sold for £9K less than the reserve ! I tried to phone Coys of Kensington Staff member "1" straight away but no answer
At 20 :51 sent Coys of Kensington Staff member "1" a text to try get him, I was now extremely worried . I actually sent a further 3 texts (Again I have all texts that were sent/received) ."

Sold less then the agreed reserve, convinced the new owner to pay a bit more??

So

15,525 posts

163 months

Wednesday 8th May
quotequote all
williamp said:
From the website

"04 December 2018 20:47
I watched the auction live (I have the recording) and was completely dismayed when the hammer went and the car WAS SOLD for £9K bellow the reserve . No mention during the auction about being sold with an MOT or about the registration transfer . As far as I could see that was it sold for £9K less than the reserve ! I tried to phone Coys of Kensington Staff member "1" straight away but no answer
At 20 :51 sent Coys of Kensington Staff member "1" a text to try get him, I was now extremely worried . I actually sent a further 3 texts (Again I have all texts that were sent/received) ."

Sold less then the agreed reserve, convinced the new owner to pay a bit more??
If that is what has given rise to the loss of £6.5k then it's very odd. I am not going to go to MH's website again because it was too difficult to read, but it would be interesting if he could confirm here that it is what went on.

Mousem40

1,638 posts

158 months

Thursday 9th May
quotequote all
This is why he is out £6.5k

From his website:-

'The phone call lasted 38 minutes with key points being 7.1 to 7.5 of Coys terms and conditions that states If Coys sell a car for less than the agreed reserve the seller can assume the lot went for the agreed reserve'

Which they later on said they won't do (reason not given), so he does seem to be genuinely down.

slow_1

90 posts

140 months

Thursday 9th May
quotequote all
Mousem40 said:
This is why he is out £6.5k

From his website:-

'The phone call lasted 38 minutes with key points being 7.1 to 7.5 of Coys terms and conditions that states If Coys sell a car for less than the agreed reserve the seller can assume the lot went for the agreed reserve'

Which they later on said they won't do (reason not given), so he does seem to be genuinely down.
Its quite common for auction houses to sell below the reserve in the room but still pay the seller the full agreed reserve amount. Remember they earn out of both the buyers and sellers commissions and can just take a reduced margin in order to conclude a sale.

I am completely shocked though on how Coys have conducted themselves and I have advised many car collector friends of this incident as it is completely unacceptable. I personally would not give them any cars for auction!

So

15,525 posts

163 months

Thursday 9th May
quotequote all
Mousem40 said:
This is why he is out £6.5k

From his website:-

'The phone call lasted 38 minutes with key points being 7.1 to 7.5 of Coys terms and conditions that states If Coys sell a car for less than the agreed reserve the seller can assume the lot went for the agreed reserve'

Which they later on said they won't do (reason not given), so he does seem to be genuinely down.
I wonder why he hasn’t pursued a claim. Is the firm solvent?

Advertisement

Maranellohouse

163 posts

149 months

Thursday 9th May
quotequote all
Guys. What is printed on my site is the exact timeline of email, phone and text throughout my dealing with Coys. I posted everything word for word as it took place. The reason I am unwilling to make comments is because I am not looking to influence anyones opinion, I gave the facts and it is up to the reader to decide if or if not they should use the company.

If you are confused reading the timeline that's the same confusion my family and I went through trying to understand the situations.

To clear the £6500 up all I will say as I want to keep to the facts is that my car was given to Coys with a reserve on it. They sold the car for £9K less than the reserve, found a way to make up some of the shortfall but still left me with a £6500 shortfall. I had every intention of chasing them for the full amount but as time moved on it became very concerning that we would come out of things with any money.


Mousem40

1,638 posts

158 months

Thursday 9th May
quotequote all
You've been paid out now, so there's no risk of them not paying at all. Why not pursue them for the shortfall? It was only after a chat with the director that they decided not to meet their obligations, maybe he thought they'd try their luck with you and see if you'd accept what was given?

They messed you around for months not dealing with the MOT or plate transfer which you specifically told them to do, which they agreed to, but didn't. The buyer couldn't drive the car for months for this reason, and they delayed payment to you and didn't pay you fully.

Outrageous

Unexpected Item In The Bagging Area

5,932 posts

130 months

Thursday 9th May
quotequote all
Based on what I’ve read about similar situations with SOR cars being sold by dodgy dealers, those who shout the loudest and threaten legal action are the ones who get their money back. Companies like Coys exploit the more timid types who they know can be strung along.

Maranellohouse

163 posts

149 months

Friday 10th May
quotequote all
Mousem40 said:
You've been paid out now, so there's no risk of them not paying at all. Why not pursue them for the shortfall? It was only after a chat with the director that they decided not to meet their obligations, maybe he thought they'd try their luck with you and see if you'd accept what was given?

They messed you around for months not dealing with the MOT or plate transfer which you specifically told them to do, which they agreed to, but didn't. The buyer couldn't drive the car for months for this reason, and they delayed payment to you and didn't pay you fully.

Outrageous
I could but because I'm in NI I would have to hire a solicitor in England to fight the case. Plus, and I'm not suggesting for one second they would do this, but they could let it go to the day of the court case, sack their solicitor, look to hiring another one and the whole process would have to start over. It could take years.

2 separate and un-related journalists have been in contact with me as they are both putting together articles regarding the auction houses dealings with customers. so I'm not alone.

4321go

438 posts

128 months

Friday 10th May
quotequote all
Never done it myself, but I’m sure someone on here will have some experience.

You can make a “small claims court” claim online at the gov.uk website. For up to £100,000.

To the best of my knowledge no solicitors are involved. The claimant pays a small fee for the application (which is probable paid by the defendant if the claim is upheld), both sides are asked to make their submissions and the case is decided by a judge......l

Edited by 4321go on Friday 10th May 15:39

South tdf

687 posts

136 months

Friday 10th May
quotequote all
Maranellohouse said:
I could but because I'm in NI I would have to hire a solicitor in England to fight the case. Plus, and I'm not suggesting for one second they would do this, but they could let it go to the day of the court case, sack their solicitor, look to hiring another one and the whole process would have to start over. It could take years.

2 separate and un-related journalists have been in contact with me as they are both putting together articles regarding the auction houses dealings with customers. so I'm not alone.
I am glad to hear you have got a good percentage of your money owed.

As for the forthcoming articles, hopefully they will be published and not silenced by any threats of libel.

Ferruccio

828 posts

60 months

Friday 10th May
quotequote all
Maranellohouse said:
they could let it go to the day of the court case, sack their solicitor, look to hiring another one and the whole process would have to start over. It could take years.
They couldn’t. Judges do not like people who try and frustrate the court process.

So

15,525 posts

163 months

Saturday 11th May
quotequote all
Maranellohouse said:
Mousem40 said:
You've been paid out now, so there's no risk of them not paying at all. Why not pursue them for the shortfall? It was only after a chat with the director that they decided not to meet their obligations, maybe he thought they'd try their luck with you and see if you'd accept what was given?

They messed you around for months not dealing with the MOT or plate transfer which you specifically told them to do, which they agreed to, but didn't. The buyer couldn't drive the car for months for this reason, and they delayed payment to you and didn't pay you fully.

Outrageous
I could but because I'm in NI I would have to hire a solicitor in England to fight the case. Plus, and I'm not suggesting for one second they would do this, but they could let it go to the day of the court case, sack their solicitor, look to hiring another one and the whole process would have to start over. It could take years.

2 separate and un-related journalists have been in contact with me as they are both putting together articles regarding the auction houses dealings with customers. so I'm not alone.
I have a contact who would probably handle it for you on a conditional fee arrangement. He is a good litigator and likes beating up car dealers.


Maranellohouse

163 posts

149 months

Monday 13th May
quotequote all
4321go said:
Never done it myself, but I’m sure someone on here will have some experience.

You can make a “small claims court” claim online at the gov.uk website. For up to £100,000.

To the best of my knowledge no solicitors are involved. The claimant pays a small fee for the application (which is probable paid by the defendant if the claim is upheld), both sides are asked to make their submissions and the case is decided by a judge......l

Edited by 4321go on Friday 10th May 15:39
I did look into it. Small claims is up to £3K only and it costs £118 to put a claim in for the max.

Maranellohouse

163 posts

149 months

Monday 13th May
quotequote all
So said:
I have a contact who would probably handle it for you on a conditional fee arrangement. He is a good litigator and likes beating up car dealers.
Thank you for your kind offer. I'm on the fence as to weather I want to continue chasing them or see what comes out of the articles if they go ahead.

So

15,525 posts

163 months

Monday 13th May
quotequote all
Maranellohouse said:
So said:
I have a contact who would probably handle it for you on a conditional fee arrangement. He is a good litigator and likes beating up car dealers.
Thank you for your kind offer. I'm on the fence as to weather I want to continue chasing them or see what comes out of the articles if they go ahead.
Why not do both? Email me if you want me to put you in touch.


sim16v

2,092 posts

142 months

Wednesday 15th May
quotequote all
I have a friend who is paying them a visit tomorrow, to try and get paid for the cars he had trusted them to sell.

I've already pointed him in the direction of this thread, and thanks to Maranellohouse's hard work chasing his money, I have also forwarded the timeline of his claim.

I've also suggested that he contacts the Police with regard to fraudulent activity being carried out, as they are obviously holding on to money paid for cars sold.


Ferruccio

828 posts

60 months

Wednesday 15th May
quotequote all
Police won’t be interested. It’s a matter of contract.

will_

5,658 posts

144 months

Wednesday 15th May
quotequote all
So said:
Maranellohouse said:
Mousem40 said:
You've been paid out now, so there's no risk of them not paying at all. Why not pursue them for the shortfall? It was only after a chat with the director that they decided not to meet their obligations, maybe he thought they'd try their luck with you and see if you'd accept what was given?

They messed you around for months not dealing with the MOT or plate transfer which you specifically told them to do, which they agreed to, but didn't. The buyer couldn't drive the car for months for this reason, and they delayed payment to you and didn't pay you fully.

Outrageous
I could but because I'm in NI I would have to hire a solicitor in England to fight the case. Plus, and I'm not suggesting for one second they would do this, but they could let it go to the day of the court case, sack their solicitor, look to hiring another one and the whole process would have to start over. It could take years.

2 separate and un-related journalists have been in contact with me as they are both putting together articles regarding the auction houses dealings with customers. so I'm not alone.
I have a contact who would probably handle it for you on a conditional fee arrangement. He is a good litigator and likes beating up car dealers.
For £6,500?

That's the problem - you are out of pocket but perhaps not by enough to make it worth taking further (potentially throwing good money after bad).


So

15,525 posts

163 months

Wednesday 15th May
quotequote all
will_ said:
So said:
Maranellohouse said:
Mousem40 said:
You've been paid out now, so there's no risk of them not paying at all. Why not pursue them for the shortfall? It was only after a chat with the director that they decided not to meet their obligations, maybe he thought they'd try their luck with you and see if you'd accept what was given?

They messed you around for months not dealing with the MOT or plate transfer which you specifically told them to do, which they agreed to, but didn't. The buyer couldn't drive the car for months for this reason, and they delayed payment to you and didn't pay you fully.

Outrageous
I could but because I'm in NI I would have to hire a solicitor in England to fight the case. Plus, and I'm not suggesting for one second they would do this, but they could let it go to the day of the court case, sack their solicitor, look to hiring another one and the whole process would have to start over. It could take years.

2 separate and un-related journalists have been in contact with me as they are both putting together articles regarding the auction houses dealings with customers. so I'm not alone.
I have a contact who would probably handle it for you on a conditional fee arrangement. He is a good litigator and likes beating up car dealers.
For £6,500?

That's the problem - you are out of pocket but perhaps not by enough to make it worth taking further (potentially throwing good money after bad).
Yep. I've known him do quite a lot of stuff pro-bono where he sees injustice in the world.