Why do people sell cars at auction?

Why do people sell cars at auction?

Author
Discussion

CasioPasio

203 posts

21 months

Thursday 21st February
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LotusOmega375D said:
I must be in a minority, but buying an expensive car at auction goes against all of my instincts. It just seems to be a ridiculous risk.
Agreed! I think one of the experiences of buying an expensive car is smiling on the way to pick it up! Not waking up 6am freezing and drinking tea that burns your tongue.

sparta6

1,197 posts

41 months

Thursday 21st February
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JeremyBearimy said:
Just out of interest did you see what the little fiat went for? I’ve been looking for the results but couldn’t find them. That was generating a lot of interest
The white one sold at £4.5K IIRC

MitchT

12,381 posts

150 months

Thursday 21st February
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I'd be interested to know how much these cars end up costing the buyer (winning bid plus buyer's premium). I know my favourite '80s supercars have softened a little in recent times, in terms of what comparable examples are advertised for in the classifieds, but I'd be interested to know what they actually change hands for.

sparta6

1,197 posts

41 months

Thursday 21st February
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MitchT said:
I'd be interested to know how much these cars end up costing the buyer (winning bid plus buyer's premium). I know my favourite '80s supercars have softened a little in recent times, in terms of what comparable examples are advertised for in the classifieds, but I'd be interested to know what they actually change hands for.
The Carrera GT sold at £605K, so add Buyers Premium of 15%, + VAT.

Cheib

16,206 posts

116 months

Friday 22nd February
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I think a lot fo the specialist dealers work on 20 pct margins if you want them to write you a cheque (if they will). Mate of mine bought a Conti GT about four years ago with the intention of running it for two years....when it came to the two year mark I think cars were on the likes of Romans website for £120k or £130k.....he had a friggin nightmare getting a bid/couldn’t get anything close. Was told by all (Romans/Top555/Bradley etc)“we work on 20 pct” Eventually got a half decent big in P/X for a FFRR....as soon as they put the price on it he drove it to them and delivered it!

That’s on a car that’s a relatively easy to shift commodity....a LHD 599....Christ knows what dealers would offer!
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wyldstalyns

Original Poster:

35 posts

10 months

Friday 22nd February
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Bispal said:
I sold my F355 at auction in December. I tried for 4 months to sell my low miles, FSH, LHD, Manual F355 privately. Each time a 'time waster' came to view I lost half a day in cleaning, test drives and even arranging inspections. I wasn't being greedy I only wanted £53k and the car had just had £7k spent on bringing it up to really nice condition. I was losing a lot of time & that was costing my business with 'supposed' buyers. The couple of offers I had were so cheeky it was a joke.

The auction house contacted me and said they would sell it consignment for a reduced fee. I agreed and took the car to them. 2 months later it wasn't sold so it went to auction in early December. Almost 3 months later I still don't have my money. Every day I have been leaving messages & emails. I get the same excuse every time, cheques in the post, only the MD can sign and he's out of the country, we are busy preparing the next auction, cheques in the post and round and round in circles it goes.

Selling older exotic or niche cars is exceedingly difficult and time consuming. There comes a point where the time I was spending was costing me more than the auctioneers fee and I was losing faith in the human race with the contemptible time wasting. However as I still haven't had my money its a case of out of the frying pan and into the fire. I have now heard this from numerous other people who have sold at auction, the money is almost always late!

I won't buy another classic car ever again after this experience, and what makes me sick is that the car was for sale for almost 6 months at a reasonable price and someone paid more, with the buyers premium, than I was selling it for but I still got less than I wanted by quite some margin. At least the car is sold and I will hopefully get my money soon but this has been a dreadful experience. What is strange is the amount of people who rant & rave about the F355 and how great it is and its their dream car, but no-one is buying them, even when they are a bargain!
£53k for low mileage manual? —- where were you when I bought my 355 in November, on the face of it sounds very reasonable! Though to be fair the combo of LHD and possibly an “undesirable” colour probably make things considerably harder (bought RHD manual red/cream in the end).

Seemed to me like people were buying at the time - I actually got gazumped *twice* before landing one, and for figures considerably above 53k.

Perhaps one moral of all this is that in this market small “compromises” on spec can make a car extremely difficult to shift. As people are saying above, why would you really buy an LHD 599 unless it was an absolute steal? So people may well be buying 355s for example, but not ones of a certain spec whilst there’s decent choice about.

Under such circumstances I can see how an auction would appeal —> the options are very limited so you don’t suffer the comparative disadvantage.

Welshbeef

36,309 posts

139 months

Saturday 23rd February
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Cheib said:
I think a lot fo the specialist dealers work on 20 pct margins if you want them to write you a cheque (if they will). Mate of mine bought a Conti GT about four years ago with the intention of running it for two years....when it came to the two year mark I think cars were on the likes of Romans website for £120k or £130k.....he had a friggin nightmare getting a bid/couldn’t get anything close. Was told by all (Romans/Top555/Bradley etc)“we work on 20 pct” Eventually got a half decent big in P/X for a FFRR....as soon as they put the price on it he drove it to them and delivered it!

That’s on a car that’s a relatively easy to shift commodity....a LHD 599....Christ knows what dealers would offer!
Given that person is going for new cars I wonder if contract lease hire or PcP would be vastly cheaper + certainly hassle free in offloading.

smartypants

39,922 posts

110 months

Saturday 23rd February
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Off to pick up a car bought in the London Classic auction this morning.

If Coys are a benchmark of what it’s like to buy and sell through an auction, I would never ever recommend it. Utter disgrace.

But you can get a bargain occasionally.

fesuvious

5,323 posts

182 months

Saturday 23rd February
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Reading with interest as am in dialogue with Silverstone Auctions withvregard to two of my cars possibly going in the May auction.

Welshbeef

36,309 posts

139 months

Saturday 23rd February
quotequote all
fesuvious said:
Reading with interest as am in dialogue with Silverstone Auctions withvregard to two of my cars possibly going in the May auction.
Is that the lotus Carlton and F355?

Drclarke

862 posts

114 months

Saturday 23rd February
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fesuvious said:
Reading with interest as am in dialogue with Silverstone Auctions withvregard to two of my cars possibly going in the May auction.
Your even considering it still from what’s been stated here?!

voicey

2,311 posts

128 months

Saturday 23rd February
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fesuvious said:
Reading with interest as am in dialogue with Silverstone Auctions withvregard to two of my cars possibly going in the May auction.
I've bought and sold a few times (£150k - £200k transactions) through Silverstone and found them to be excellent.

Welshbeef

36,309 posts

139 months

Saturday 23rd February
quotequote all
Drclarke said:
fesuvious said:
Reading with interest as am in dialogue with Silverstone Auctions withvregard to two of my cars possibly going in the May auction.
Your even considering it still from what’s been stated here?!
The problem is used buyers really don’t like handing over mega £ to joe Bloggs with zero safety net/scam etc. The auction house / dealer option + no doubt some will want to dealer finance mean private sales must be minuscule - and kind of verified by some posters here

Drclarke

862 posts

114 months

Saturday 23rd February
quotequote all
Welshbeef said:
The problem is used buyers really don’t like handing over mega £ to joe Bloggs with zero safety net/scam etc. The auction house / dealer option + no doubt some will want to dealer finance mean private sales must be minuscule - and kind of verified by some posters here
I understand, but from FIRST HAND experiences on here, when your buying at auction your handing money over to a third party who takes weeks to actually pay the owner and with a lot of chasing.



Auto810graphy

159 posts

33 months

Saturday 23rd February
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Something else that not all buyers know (this might not apply to all classic auction houses) is the description is often written by the seller and not checked the auction house. If anything I was encouraged to mis represent a vehicle that we entered as we had a slight grey area over who did some modifications where the auction house more or less picked the better name of the two and stated they did it.


Trev450

5,723 posts

113 months

Saturday 23rd February
quotequote all
smartypants said:
If Coys are a benchmark of what it’s like to buy and sell through an auction, I would never ever recommend it. Utter disgrace.
Agreed. Taking two months to payout on a sale and only then after threatening legal action.

fesuvious

5,323 posts

182 months

Saturday 23rd February
quotequote all
Welshbeef said:
fesuvious said:
Reading with interest as am in dialogue with Silverstone Auctions withvregard to two of my cars possibly going in the May auction.
Is that the lotus Carlton and F355?
Indeed. Racing has taken over with road cars not quite the draw they once were.
At this stage just exploring the option.

Cheib

16,206 posts

116 months

Saturday 23rd February
quotequote all
Welshbeef said:
Cheib said:
I think a lot fo the specialist dealers work on 20 pct margins if you want them to write you a cheque (if they will). Mate of mine bought a Conti GT about four years ago with the intention of running it for two years....when it came to the two year mark I think cars were on the likes of Romans website for £120k or £130k.....he had a friggin nightmare getting a bid/couldn’t get anything close. Was told by all (Romans/Top555/Bradley etc)“we work on 20 pct” Eventually got a half decent big in P/X for a FFRR....as soon as they put the price on it he drove it to them and delivered it!

That’s on a car that’s a relatively easy to shift commodity....a LHD 599....Christ knows what dealers would offer!
Given that person is going for new cars I wonder if contract lease hire or PcP would be vastly cheaper + certainly hassle free in offloading.
The Bentley was on PCP....but I think it was a balloon designed to “give you equity” rather than any sensible residual value protection. Agree on cars like say an M5 it’s the way to go though. He wanted out of the Bentley after two years as he’d gone in eyes wide open knowing that it would cost him at least £20k a year in depreciation. I think he realised if he ran it for another year with a new refresh due he’d be looking at a bigger hit.

Big boys game buying a £170k Bentley new!

smartypants

39,922 posts

110 months

Sunday 24th February
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Trev450 said:
Agreed. Taking two months to payout on a sale and only then after threatening legal action.
Car bought, immediate payment requested as had a guy on site to collect immediately as he had other cars in the auction. Ignored. Requested continuously, ignored and only got the invoice 5 days later which included transport and storage costs for 5 days. When they eventually answered the phone, their words were (or something to that effect) “well you got it for a song anyway so what does it matter?” There other things, but I won’t go into that. I’d avoid like the plague they appear to be pretty bent.


South tdf

694 posts

136 months

Sunday 24th February
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A companies house report is enough, just don’t read it until after you have been paid.