Quote:
Originally Posted by GregWeld
Yes -- They went to all no reserve when prices went through the roof... and they have more guys wanting into their auctions than they can take.
But a typical auction has both reserve and no reserve - no reserve fees are LESS than reserve fees. I was trying to talk in GENERAL terms here - every auction is different. Plus - if you're a big seller - stuff is negotiable as well...
What you aren't aware of - and I'm not going to write a book on car auctions - is that these guys are DEALERS... and most of the inventory they're selling is from dealers... and these dealers aren't going to take a big loss on a no reserve sale.. they have friends in the audience that can whack a bid... and if a car isn't selling for what it should - they can end up buying their own car back... Don't get me started here - just trust me that I know what I'm talking about. You're naive (not you personally but anyone that doesn't understand how this stuff works) if you think the sellers are losing their ass on a car. Now that's not saying they won't. They may have just hit a home run on a previous car... and the bids are "close" and they'll cut it loose... but if there's a serious "difference" between what the car is "worth" and the bid... the gavel will drop... but you won't really know who bought the car.
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Without the dealers in attendance at most of these auctions they would be pretty uneventful...I have worked 20+ years in the auction business. I have been debating this for years with all of those who are drinking the B-J kool aid. I have always contended that sure, you can advertise 100% sale rate but are 100% of those cars really changing owners? I doubt it. I'd bet my left nut on it.
It is the general public guy who gets his ass handed to him because he doesn't know how things work and if his car doesn't bring what he wants, he will take a beating. He probably doesn't even know he can buy his own car back-although that alternative isn't much better since he will pay both the buyer and seller's fee (no discount). So he will be in the car 16% deeper than he was before plus whatever he paid for the number plus transport there and back.