Auction Tips

Don't get caught up in the hype and overspend. If the vehicle (if this is for a car) goes over what your willing to pay walk away.

 

Wait. Watch. Walk or Win.


via rubber ducky

 

Watch earlier auctions to get a gist what you will be up against, including the phone bidders. Go in with your final price before bidding. It is too easy to get caught up with the excitement, and then think, it is only x$'s more. Don't have drinks before or during the auction. Don't forget about commissions, how you may take it home.

Some other tips:

Get to know the car b4 going to the auction. Auction houses can provide you info days/weeks b4 the auction. Try to call any shops/previous owners before seeing the car. Some auction houses may have you drive the car b4 bidding, so do that, and take car outside, as the lighting inside auction houses favor the seller.

 

Auction houses have several incentives to get you to bid against yourself. They make more money, the consigners make more money (which brings repeat and word of mouth business) and they can advertise the strong auction results. They WILL let you bid against yourself. Just because they look out into the audience and go up an increment doesn’t mean there was a real bidder out there. I have purchased hundreds of items at different auctions over the years and I have seen it many times. You need to be standing where you can see the auctioneer and bidders to see if there is an actual bidder in the audience. You also need to raise your bidder card for each bid and then put it down. If you hold your card up without putting it down, as if you are determined to buy the item, the auctioneer will start rapid fire bidding and you will surely end up bidding against yourself. The auction companies are not as honest as you may think. Some just make bigger "mistakes" (when they are caught by having to back up bids until they get to a real bid) than others. Some smaller auto auction houses also plant bidders in the audience. They will use the fake bidder to run the “no reserve” price up to their reserve and then they will work the audience hard for at least one more bid.

It is good advice to be an observer for a while to learn the process.

 

Their latest scam is the so called phone bidders. They usually have a group of employees off to the side manning phones. Who knows if there is anyone on the other end. They stand up and remain standing giving the appearance that the client on the other end is bidding on the item on the block.

You might also consider many of the auction cars are not front line cars that would not pass muster if you had an honest non partial PPI done. By selling at auction you have a very limited opportunity to do an in depth inspection, let alone road test.

Keep in mind its in the auction houses best interest to get higher bids anyway they can. So keep in mind buyer beware at all times. As stated above they will bid you against yourself, phantom bidders, non existant phone bidders.

With that said I have purchased a number of cars from various auctions houses. I have a few hard rules I follow.

1) Do you resarch, climb all over the car, do you own in depth inspection, find the seller and get him to commit to the condition of the car. Ask for reciepts, records, and service history. If the story sounds unrealistic, walk away.
2) If you decide this is the car for you, research the value based on condition, rarety, usability.
3) Establish a firm price and stop at that price, don't get caught up in the hype and the ring man trying to convince you to bid just one more time, again keep in mind they are just another way the auction companies get more money for the car, arm twisting.
4) Walk Away, if it passes your established price, WALK AWAY..........................there is always another auction and another car. Your bank account will thank you.
5) Get to the aution before it starts, head to the back of the room, find a corner where you can see the entire group of bidders. Watch the crowd of bidders to see who the big hitters are and then watch out for the bidders that bid on most every car, then watch and see if they actually buy anything or are shills(employees of the auction) to get the biding started and bid items up. This is illegal in most states but never inforced.

Of the numerious auctions I have attended and purchased from I have found that R&M have the most straight forward and understandable auctioneers. I have actually heard them tell a bidder, that they won't take their bid as they are already high bidder. I have no finacial interest or connection with R&M just good buying expierences.

Just sayin'

Howard Musolf
1981 308gtsi
1982 400i Cabriolet
1994 348 spider
1988 Lotus Esprit Turbo

 

See the end of post 4 this applies whether bidding in person or absentee : know your target having done as much research as possible in advance & then stick to your limit

 

Different auctions are run in different ways. Manheim works differently than Barrett-Jackson.

Your goal matters. Are you trying to secure a one-of-a-kind vehicle at any price, or are you trying to score a deal?

If you elaborate on the above from your perspective, then I can help you. ...But without knowing your goals and the style of the auction I can't do much for you, though. Just a few basics such as:

#1: don't bite at the sucker bid bait
#2: do not exceed your pre-auction fixed bid limit
#3: identify the phantom bidders by paying attention to the earlier auctions
#4: note the party bidders, the limit bidders, the inventory bidders, etc.


Most people crawl all over one car, fixate on it, and can't wait to bid (and then bump bids) on their prize. Most people don't go in with a $ limit in writing in their pocket which they have the conviction to not exceed.

If you are looking for a deal then you must be unattached to the vehicle. Emotions will cost you money.

If you are looking for a one-of-a-kind, then know your competitive bidders.

 

Another thing to consider is that all may not be lost if you hit your bid ceiling on a car and quit, and the car winds up an official "No Sale" because it did not make reserve. As others have pointed out, auction houses make the most money by selling a car. They will often approach bidders on a no sale right after the car has been pulled, or next day, to try to work a deal. I was a phone bidder for a couple of the Monterey 2011 auctions but either was out bid and the car sold, or was high bidder but the car did not make reserve and was a no sale (i.e., I set a limit on each car, as others have suggested, and stuck to it). I was subsequently contacted by two auction companies with fixed price offers on no sale cars that I had bid on. I passed on one but bought the other at a cost that was less than what my total cost (my bid plus buyer's commission) would have been had my bid during the auction been accepted. And to emphasize what others have already mentioned, what your goal is at an auction is paramount in developing a bidding strategy. Being after a "one (or similarly small number) in the world" car is much different from looking to get a Daytona or Boxer or Gullwing.