Barrett-Jackson numbers legit? | FerrariChat

Barrett-Jackson numbers legit?

Discussion in 'Ferrari Discussion (not model specific)' started by deshapiro, Mar 13, 2019.

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  1. deshapiro

    deshapiro Karting

    Sep 25, 2015
    108
    Was watching a rerun of the Scottsdale Barrett-Jackson auction for the muscle cars when I was surprised to see a number of Ferrari’s go for surprisingly low prices.

    I know that these cars may not have been inspected, may have dodgy histories, may have been the wrong audience, etc, but the prices were LOW. Now, I have no intention of buying my next car there, but I was still surprised.

    David
     
  2. technom3

    technom3 F1 World Champ
    Rossa Subscribed

    Mar 29, 2007
    14,728
    Phoenix AZ
    Full Name:
    Justin
    Barrett Jackson is a known dumping ground of cars. They are guaranteed to go away and there is almost ZERO ZERO ZERO recourse for the buyer against the seller. All you know is that the car can idle for about 3 minutes and it has first gear... thats it
     
  3. slide9595

    slide9595 Rookie

    Mar 24, 2019
    9
    Full Name:
    slide
    I am into classic cars and the auction is legitimate. I was in Scottsdale on business about 5 years ago when it was going on but could not get to the actual auction. There are auctions happening all the time around the country, Barrett Jackson is just the most famous. I have attended a couple of local auctions and met both buyers and seller....

    It is just a hobby like many others. Some guys have a boat, some a plane... Some are just into cars.... With so many new cars seeming all the same, there is something special about the older cars (pre-1973)...
     
    Texas Forever likes this.
  4. LARRYH

    LARRYH F1 Veteran
    Owner Rossa Subscribed

    Jun 3, 2011
    9,142
    virginia usa
    Barrett Jackson is a mixed bag the cars you see can be very good or total junk with shiny paint... The Ferraris that are sold there are likely legit but they could have anything wrong with them or be very nice many dealer cars at BJ...IT is just like any other dealer it is buyer beware....I have purchased some very nice cars at BJ at good prices .but it is just as easy to buy junk at inflated prices...never trust the bid as they will have you bidding against yourself
     
    Texas Forever and Lusso123 like this.
  5. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
    Full Name:
    Ron H
    Larry, what do you mean by that? Does that mean you are bidding against phony bids? If so, how would you ever know since i understand that people can call in bids?

    I am thinking about getting another toy and I just missed going to Scottsdale this year.
     
  6. LARRYH

    LARRYH F1 Veteran
    Owner Rossa Subscribed

    Jun 3, 2011
    9,142
    virginia usa
    I have been to many auctions and enjoy going if you are going to BJ scottsdale the best advice I can give you is to pay very close attention to how the bid of different cars increase.. then look for the retreat.... if the car is no reserve then just wait and see ..... bid once early then wait till the very last second is one way.. but watch and look for different techniques... remember it only takes one bid to buy a car and very often that is all there is ...the guys that jump in with one bid after another are in many cases biding against (???).. the main thing is know what you are willing to pay for a car and stick very close to it... they will let you pay as much as you want....
    IT is great fun.....good luck there are some great cars .. available ...Interestingly I will see many of the same cars over the years a couple of years ago I bought a 66 GT350 Shelby that had been sold about 5 times at these auctions I knew that and knew what they sold for and knew the last buyer spent 150k on a restoration a couple of years before I bought it ...
    I got it for a very fair price and kept it a few years just sold it ...
     
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  7. Texas Forever

    Texas Forever Seven Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    75,396
    Texas!
    I used to restore old POS brit motorcycles. Pre-Internet, finding parts was tuff. Then eBay came along. At first it was crack. Man, I've been looking for that since Christ was a teenager. Then I realized, just when you thought you'd never see X again, next week here came another X at auction. I've never brought a car at auction. But if I did, I would be one cold hearted mofo. It would have to be a truly fine car for me to bid more than once.
     
    LARRYH likes this.
  8. Canuck550

    Canuck550 Formula Junior

    Sep 8, 2015
    462
    Incognito
    Full Name:
    RJA
    Like every big auction house, they place cars in order to pump up based on business relationship with the seller....
    It's whom you know in the game, it could mean a significant premium to any car, its a sham....
    See cars of value blow across the block in 10 sec, then other cars sold by a reputable seller, just sit and sit and sit on the block being worked over by the auction house, to pump up the price
    Relationships go along way....just watch an auction, disgusting
     
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  9. HardTen

    HardTen Formula 3
    Owner Rossa Subscribed

    Aug 7, 2011
    2,116
    Ft. Worth, TX
    BJ is similar to most any other auction in the world, but they do have to abide by auction rules. One of those rules concerns no reserve cars vs. reserve cars. If a car has a reserve the auction company can bid up to but not in excess of the reserve on behalf of the seller. If the car is a no reserve car then the auction company is prohibited from bidding on the car and has to let the audience drive the price.

    I would recommend attending an auction or two before bidding/buying at auction. You get a feel for the auctioneers cadence, the way they present cars, and the hand signals and other mannerisms used by the bidder assistants. If you pay close attention you can readily begin to see patterns and you will realize when the "back wall" is bidding. Auction companies do have relationships with some of their best sellers and will usually work their cars pretty hard, but the reason you see some cars go by so quickly is that the interest in the room is nowhere near the reserve estimate on a car. For example, if a car has a reserve of $100K and the auctioneer is having a hard time getting any interest above say $60K they will just pass the car because they know the seller isn't going to drop the price that much just to sell the car.

    The last couple of recommendations I would make is to do your homework on any car of interest, and have a budget and stick to it. In the budget you need to also factor in the buyers premium (usually 10% of the hammer price). I typically include a repair estimate of $2500 - $5000 for any classic car I buy at auction. Occasionally you get lucky and the repairs are minimal, but the repairs often fall in the range I mentioned. Rarely are you able to just hop in an auction purchase and begin to enjoy it without the car needing some sort of attention.

    Finally I would say that things almost always look better on tv than in person. There's a reason for those camera angles and the way the lights are positioned.
     
  10. cheesey2

    cheesey2 Rookie

    May 16, 2018
    36
    Full Name:
    Ivars Blumenau
    Car dealers use auctions to get rid of inventory they can not or do not want to sell. There is a liability to the selling dealer they may not want to assume or the car brand is not part of their normal business. Dealers keep cars that will sell easily, allow for good profit. with little risk of things going wrong with the car
     
    Texas Forever likes this.
  11. gbutler

    gbutler Formula Junior

    Jun 9, 2005
    542
    Charlotte, NC
    Full Name:
    Glenn Butler
    Read my post in the Amelia Island bound thread below. Based upon your post that I have quoted above, I would HIGHLY recommend you work with a professional at an auction! There are all kinds of shenanigans that go on at these auctions AND if you are going to auction thinking you are going to score a good car at below market, the deck is stacked against you and you are sorely mistaken!

    https://www.ferrarichat.com/forum/threads/amelia-island-bound.594365/#post-146501698
     
    RonH likes this.
  12. Federal man

    Federal man Karting
    Silver Subscribed

    Sep 3, 2018
    141
    Seattle area
    Full Name:
    Mark Higinbotham
    I went to the January auctions in Scottsdale and in my opinion the prices at BJ were higher than you could buy the same or better cars on the open market. (especially when you consider that a 10% Buyers Premium gets added) I watched the TV coverage of BJ Palm Beach Saturday night. I wish I knew what BJ was serving all those folks in their drinks to make their arms so light. The were a couple of women who must have been getting a muscle burn from all that arm raise'n. Even the commentators kept mentioning how unusually high the bidding was going. Was it just me, or did other people notice that cars were going for much higher than open market? BJ has the Magic Formula....all figured out.
     
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  13. tbakowsky

    tbakowsky F1 World Champ
    Consultant Professional Ferrari Technician

    Sep 18, 2002
    19,349
    The Cold North
    Full Name:
    Tom
    I'm not quite sure why people are surprised that auction houses will try to pull every dollar they can from your wallet.

    Yet you have no problem paying a huge amount of money for a Ferrari. Even though the profit margins are simply massive. Auctions are fun and entertaining, and yes deals can be had if your quick on your feet, but make no mistake, they are a money making machine for the house.
     
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  14. jjtjr

    jjtjr Formula Junior

    Aug 29, 2016
    668
    Vermont
    Full Name:
    john truskowski
    I'm not sure how most feel about purchasing a high end vehicle at any auction, UNLESS the person already knows that vehicle intimately. It just seems in my estimation that with all of the unknowns that could possibly come back to haunt you later it is just not worth the gamble. Another way to look at the purchasing method that one uses, like buying an exotic from a dealer is that as least if something comes up right after the sale the dealer will usually try to help to make it right. The same would likely be true for a private sale. I know if I was selling my exotic to another enthusiast and some unknown issue came up the day after the sale, I wouldn't be able to turn my back. I have a conscience, and would do my best to make it right with the new owner. When you buy anything at the auction, you are on your own at the point of sale.
     
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