Why do people sell cars at auction?

[Cheib]

rat rod said:

Cheib said:

No problem and glad you missed the Gmund mare. I looked at a car Tuthill had done some work on earlier this year....not a “full Tuthill” but they were very happy to talk me through what they had done in a lot of detail. The Coys stuff was going on for quite a while...amazing how they stayed in business so long.

Ye i'd be the one on here now asking advise.The car i was looking at disappeared off his web site so i think the owner may have got wind of what was going on and took it back as i noticed the cars that had been sold had that across their photo's ,Tuthill's were helpful and friendly but just couldn't remember the car which i thought odd as it had a carbon fibre doors, bonnet and roof with gutter delete extended arches, full roll bar and light weight interior so not a small job buy any means.Have been keeping my eyes open just in case it's advertised elsewhere. With Coy 's it wasn't a case of will it rather than when. I suppose it wouldn't make any difference whether the cars were sold under or over the reserve as the venders wouldn't get the funds anyway.Feel for them they were like lambs to the slaughter .A guy i sold a Galaxie race car to entered and sold it at that auction and he won't get paid for it,l wish he had contacted me first, Buy selling under the agreed reserve that is so blatant as to what they were up to,l can't believe they can get away with it but i expect they will yet again ,even the showroom is still open !

Yup.

Probably also means that cars bought through Coys were cheap....as we know cars were selling below reserve and I suspect they probably weren’t working too hard to max out prices. Just a question of getting cars sold and pocketing whatever they could get !

[rat rod]

Cheib said:

rat rod said:

Cheib said:

No problem and glad you missed the Gmund mare. I looked at a car Tuthill had done some work on earlier this year....not a “full Tuthill” but they were very happy to talk me through what they had done in a lot of detail. The Coys stuff was going on for quite a while...amazing how they stayed in business so long.

Ye i'd be the one on here now asking advise.The car i was looking at disappeared off his web site so i think the owner may have got wind of what was going on and took it back as i noticed the cars that had been sold had that across their photo's ,Tuthill's were helpful and friendly but just couldn't remember the car which i thought odd as it had a carbon fibre doors, bonnet and roof with gutter delete extended arches, full roll bar and light weight interior so not a small job buy any means.Have been keeping my eyes open just in case it's advertised elsewhere. With Coy 's it wasn't a case of will it rather than when. I suppose it wouldn't make any difference whether the cars were sold under or over the reserve as the venders wouldn't get the funds anyway.Feel for them they were like lambs to the slaughter .A guy i sold a Galaxie race car to entered and sold it at that auction and he won't get paid for it,l wish he had contacted me first, Buy selling under the agreed reserve that is so blatant as to what they were up to,l can't believe they can get away with it but i expect they will yet again ,even the showroom is still open !

Yup.

Probably also means that cars bought through Coys were cheap....as we know cars were selling below reserve and I suspect they probably weren’t working too hard to max out prices. Just a question of getting cars sold and pocketing whatever they could get !

Even though the proceeds have gone ,probably in a Caribbean off shore account surly the directors can be prosecuted for fraud ,the evidence is there wright in front of you,This won't get the money back but at least may give the victims a little satisfaction. I keep reading on most auction sites that the proceeds will held in a secure segregated bank account which i assume like most people that it can't be touched and is safe,obviously not the case. I myself is going though a legal case with a auction house which i can not name for obvious reasons ,that's probably why i am posting at 3 or 4 o'clock in the morning.

[cayman-black]

Cheib said:

Yup.

Probably also means that cars bought through Coys were cheap....as we know cars were selling below reserve and I suspect they probably weren’t working too hard to max out prices. Just a question of getting cars sold and pocketing whatever they could get !

They really are proper crooks.

[12TS]

Administrator’s report. See p33 onwards for a list of creditors, very sad.

[anonymous-user]

12TS said:

Administrator’s report. See p33 onwards for a list of creditors, very sad.

Do you have a link to the report?

[Stryke]

Interesting, looks like they screwed some poor family in probate out of 750k.

Though made sure not to screw over HMRC.

[HIS LM]

[redacted]

[anonymous-user]

Found it. Linking direct to the document isn’t working. It’s the document dated 25th June on this page.

https://beta.companieshouse.gov.uk/company/0462705...

[The Mad Monk]

HIS LM said:

No linky

Click on 'Statement of Administrator's proposal'

https://beta.companieshouse.gov.uk/company/0462705...

[will_]

Thanks for the link - that makes very interesting reading. Let's see what the six month report says - and bets on how much will be left after administration expenses?

[will_]

Stryke said:

Interesting, looks like they screwed some poor family in probate out of 750k.

Though made sure not to screw over HMRC.

And £370k to this guy:
https://www.dailymail.co.uk/news/article-7853557/B...

[The Mad Monk]

will_ said:

Thanks for the link - that makes very interesting reading. Let's see what the six month report says - and bets on how much will be left after administration expenses?

Sad reading. Quite a few private individuals with significant sums of money.

Serious question. What moral, or life lesson can we draw from this? Never give a car to a dealer on sale or return - or what?

[will_]

The Mad Monk said:

will_ said:

Thanks for the link - that makes very interesting reading. Let's see what the six month report says - and bets on how much will be left after administration expenses?

Sad reading. Quite a few private individuals with significant sums of money.

Serious question. What moral, or life lesson can we draw from this? Never give a car to a dealer on sale or return - or what?

For a start, do your due diligence:
https://www.telegraph.co.uk/finance/2874724/Classi...

There are inherent risks with SoR - I am yet to hear of a fool-proof way of protecting yourself. Regrettably there have been numerous examples of dealers going bust and taking client funds with them, and forums are quick to take down "warning" threads (for understandable reasons).

Auction houses should use escrow accounts so that funds due to vendors are ring-fenced from the company's assets.

I would like to think that at some stage there is a proper investigation into the individuals behind companies that go bust in this way, but I don't think that happens very often. So they are free to do it again without any personal ramifications.

[Louis Balfour]

will_ said:

So they are free to do it again without any personal ramifications.

It happens a great deal across all sectors.

In some cases the companies are a front for organised crime and the reason that the directors don't suffer "very personal ramifications" is that they are protected. It's probably less common than Guy Ritchie type films suggest, but it does happen.

[The Mad Monk]

will_ said:

For a start, do your due diligence:
https://www.telegraph.co.uk/finance/2874724/Classi...

That link is dated 2004. Are you saying this is not the first time?

[will_]

The Mad Monk said:

will_ said:

For a start, do your due diligence:
https://www.telegraph.co.uk/finance/2874724/Classi...

That link is dated 2004. Are you saying this is not the first time?

You'll need to make your own mind up:
https://www.antiquestradegazette.com/news/2004/coy...

https://marketinglaw.osborneclarke.com/advertising...

[TP321]

Does this make any sense to anyone?

Bought at Historics for £82k plus 10% Commission plus VAT = £92k

https://www.historics.co.uk/buying/auctions/2020-0...

To then appear on Autotrader at £92k:

https://www.autotrader.co.uk/classified/advert/202...

Seems the Auction house is the only winner here.

[randlemarcus]

TP321 said:

Does this make any sense to anyone?

Bought at Historics for £82k plus 10% Commission plus VAT = £92k

https://www.historics.co.uk/buying/auctions/2020-0...

To then appear on Autotrader at £92k:

https://www.autotrader.co.uk/classified/advert/202...

Seems the Auction house is the only winner here.

Dealer likes gambling?
Unless they get a decent discount from the auction house I can't see that making any financial sense, even if they sell at asking, what with some risk priced in for future failure costs. Maybe they thought it was a bit of a bargain, bought it, and discovered it wasn't?

[will_]

TP321 said:

Does this make any sense to anyone?

Bought at Historics for £82k plus 10% Commission plus VAT = £92k

https://www.historics.co.uk/buying/auctions/2020-0...

To then appear on Autotrader at £92k:

https://www.autotrader.co.uk/classified/advert/202...

Seems the Auction house is the only winner here.

£82k includes the commission - so a £10k uplift.

[will_]

It would represent some very odd bidding increments if the hammer price was £82,544!