A Dino Sold: A Story

H&H Sold a yellow Dino GT this Saturday for £75k (Hammer), £83,813 including 10% buyers premium and VAT. The vendor will receive £70k after 5% sellers commission.

The car first appeared in the market at a Northern dealer around May 2007, priced at £65,995. It needed a bit of work and did not sell.

The dealer resprayed the car and did a service at a "cost" of £16.5k, and remarketed the car in late 2007 at £89,995. It still didn't sell, so in mid 2008 the price was dropped in two stages to £79,995.

In September it appeared on ebay and didn't sell with a top bid of £65,200.

It appeared in this month's Classic & Sports Car "case histories" (Nov 2008 p205) with a full and favourable description (but it is an advertorial feature) again at £79,995.

So, the car has been widely advertised on the web and in the car magazines and yet it failed to find a buyer. Ultimately the purchaser paid £83k at auction, when a little research would have got the same car from a recognised dealer at no more than £79,995 (the screen price) and presumably with the opportunity to PPI the car and have any work done (if there was any).

For me it raises an observation and a question:
1. It appears to be proof positive that despite the web, some buyers don't do research before buying, and/or;
2. Do people not know the buyer's premium and get carried away by the apparently low hammer price? Maybe the buyer thought "£75k, not a bad price," without adding on the premium and VAT. If that's the case, shouldn't auctions be required to sell inclusive of buyer's premium?