Scottsdale Auctions
01-21-2018, 05:56 PM
#16
Three Wheelin'
Ed- Glad you enjoyed them! The challenge is making sure I don't come across as too negative or slam someones pride and joy. The key takeaway is that some really amazing cars are at these auctions, some fairly good cars, some so-so cars and some truly horrific examples. One thing they share in common however is that they look look and sound amazing in the auction catalog/photos and also when they cross the block on TV. Unless you have seen them in person you have no idea if they were a "Deal" or not. IMO there are lots of experts at these events so true "Deals" are rare. So when you see a low number 95% of the time there is a good reason...
01-21-2018, 08:10 PM
#18
Rennlist Member
Ed- Glad you enjoyed them! The challenge is making sure I don't come across as too negative or slam someones pride and joy. The key takeaway is that some really amazing cars are at these auctions, some fairly good cars, some so-so cars and some truly horrific examples. One thing they share in common however is that they look look and sound amazing in the auction catalog/photos and also when they cross the block on TV. Unless you have seen them in person you have no idea if they were a "Deal" or not. IMO there are lots of experts at these events so true "Deals" are rare. So when you see a low number 95% of the time there is a good reason...
At your tech session in Bend a couple of months ago, I liked how you noted that it’s ok to make a car how you want it, and have done so to some of yours. Of course, doing such could impact price, if one is selling.
01-21-2018, 09:14 PM
#19
Rennlist Member
Typically in these auctions there is a 10% buyers premium and a 10% sellers fee, so while the buyer paid $132K, the seller only gets $108K. And usually there are additional auction house fees for the seller, marketing, photography, etc. and if the car was shipped to the auction probably the seller only netted $100K or a bit more.
Last edited by centerpunch; 01-21-2018 at 09:31 PM.
01-21-2018, 09:29 PM
#20
Ed- Glad you enjoyed them! The challenge is making sure I don't come across as too negative or slam someones pride and joy. The key takeaway is that some really amazing cars are at these auctions, some fairly good cars, some so-so cars and some truly horrific examples. One thing they share in common however is that they look look and sound amazing in the auction catalog/photos and also when they cross the block on TV. Unless you have seen them in person you have no idea if they were a "Deal" or not. IMO there are lots of experts at these events so true "Deals" are rare. So when you see a low number 95% of the time there is a good reason...
I attended and watched the prices at the recent Mecum auction in Kissimmee. There were some good sales on the last two days but prior to that Porsches seemed to be falling short of the reserve or selling for below market prices, a couple of them I had seen and briefly checked out, but I am no where close to an expert, quite the opposite.
01-21-2018, 09:57 PM
#21
Rennlist Member
Maybe I'm wrong. But, I believe the buyers premium is added to the gavel price.
"centerpunch:
"The seller probably only got $100K.
Typically in these auctions there is a 10% buyers premium and a 10% sellers fee, so while the buyer paid $132K, the seller only gets $108K. And usually there are additional auction house fees for the seller, marketing, photography, etc. and if the car was shipped to the auction probably the seller only netted $100K or a bit more.""
"centerpunch:
"The seller probably only got $100K.
Typically in these auctions there is a 10% buyers premium and a 10% sellers fee, so while the buyer paid $132K, the seller only gets $108K. And usually there are additional auction house fees for the seller, marketing, photography, etc. and if the car was shipped to the auction probably the seller only netted $100K or a bit more.""
01-21-2018, 10:05 PM
#22
Drifting
You're not wrong. Seller only had 10% sellers premium deducted so about $14K unless he had other cars at Gooding and was able to negotiate a slightly better rate of premium for himself.
01-22-2018, 01:47 PM
#23
Rennlist Member
The gavel price was $120K.
Buyer pays 10% more, i.e., $120K + $12K = $132K.
Seller gets 10% less, i.e., $120K - $12K = $108K.
If you do the math, the seller gets about 82% of what the seller pays. ($108K / $132K = 81.82%)
There are probably other fees the seller pays in advance, e.g., photography, marketing, and of course, transporting the car.
Maybe the seller ended up netting $105K if he was lucky.
Buyer pays 10% more, i.e., $120K + $12K = $132K.
Seller gets 10% less, i.e., $120K - $12K = $108K.
If you do the math, the seller gets about 82% of what the seller pays. ($108K / $132K = 81.82%)
There are probably other fees the seller pays in advance, e.g., photography, marketing, and of course, transporting the car.
Maybe the seller ended up netting $105K if he was lucky.