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Buying an Fcar via wholesale auction

Discussion in 'Ferrari Discussion (not model specific)' started by bjm, Nov 5, 2003.

  1. bjm

    bjm Formula Junior

    Nov 1, 2003
    922
    Fairfield County, CT
    Full Name:
    Brian
    I found a guy in NJ who specializes in used european cars and he will try and find a car for you at auction and charges $2500 over auction price. Has anyone here bought a car like this via auction like Manheim, the prices are significantly lower than buying retail. I may be in the market for a 355. Any comments on buying a car this way??

    Thanks
     
  2. Auraraptor

    Auraraptor F1 World Champ
    Owner Lifetime Rossa

    Sep 25, 2002
    10,992
    MO
    No PPI = potential MAJOR ISSUES...remember these are Ferraris and potential problems mean BIG $$$. I dont like them odds.

    Are you a gambling man?
     
  3. thecarreaper

    thecarreaper F1 World Champ
    Silver Subscribed

    Sep 30, 2003
    15,381
    Savannah
    Full Name:
    name
    ditto that.
     
  4. Caruso360

    Caruso360 Karting

    May 1, 2003
    203
    Being a licensed dealer doing the auction thing there are pros and cons.
    Most normal vehicles like Fords, BMW's, etc usually get a "Manheim"
    certification which is a guarantee of a vehicle inspection with full disclosure of any issues prior to purchase at auction. Keep in mind that there are associated auction fees attached to the buy and sell end of each sold vehicle transaction which the end buyer is usually responsible for in addition to the commission the person who bids for the vehicle wants to charge. I think $2,500 is a bit excessive and also note that the end buyer rarely will see the actual cost of the vehicle at auction, in other words if the the dealer blue book is let's say $50k, the car based on the demand might only fetch $43k, the guy who's at the auction doing your bidding will tell you he can get the vehicle for $47.5k and you feel you got a great deal because it was back of wholesale blue book. The guy at the auction just made $4.5k plus the commission, not bad for
    a day's (at best) work. Just stay on top of the situation and you might come out alright. In any case it still beats the hell out of retail.
     
  5. AJS328

    AJS328 F1 Veteran
    Owner

    Apr 23, 2003
    7,519
    New Jersey
    Full Name:
    Augustine Staino
    I agree that, while the savings can be good, the risks are monumental. I am the auction buyer for our dealership and I spend a good deal of time at the auctions every week. Although Manheim has certain guarantees, they are not bulletproof. I've bought a few vehicles in the past that went through the block with a "Green Light" and were checked out in my shop later only to reveal frame damage and other such nasty surprises. This has cost me thousands. Imagine the same problems magnified in the Ferrari realm. I am not totally discounting the process. I give you this point of view though. From my experiences over the years I've seen two major reasons that people bring vehicles to the auction:

    -to turn a quick profit (it's all about timing)

    -to unload old inventory that they couldn't sell on their own.

    Now you have to wondef about this one. Why couldn't they sell it? What is wrong with it that has turned off all potential buyers? What may the seller be hiding?

    I can understand not being able to sell a 2000 Dodge Intrepid. It could have an undesirable color or maybe the miles are a little to high. Or maybe there are just too many on he market. But a Ferrari?
    Since when did anyone have a hard time unloading a mint condition 355 with all services done, good color combo, good miles, and all of the "eyeball" in the world? Chances are they haven't, unless it isn't what it appears to be. Just something to think about. Be careful!
     
  6. Caruso360

    Caruso360 Karting

    May 1, 2003
    203
    Might I say that if you are in the auction business you better know what you are looking at and for. If a vehicle is sold at Green light the auction will guarantee the vehicle. If within a 48 to 72 hour period frame damage is discovered the auction houses in Colorado will take back the vehicle. Our experience shows that most late model vehicles with the proper mileage are still under manufacturer's warranty for engine and drivetrain.
    Tires, brakes, fluid changes, etc. are the new owners resposibility.
    That's that.
     
  7. bjm

    bjm Formula Junior

    Nov 1, 2003
    922
    Fairfield County, CT
    Full Name:
    Brian
    Thanks for the imput Guys. Alot to think about here.
     
  8. scott63

    scott63 Formula Junior

    Nov 1, 2003
    393
    I would never buy a Ferrari at an auction. Too many potential problems. Your best bet if this is your first Ferrari would be to buy it from an authorized Ferrari dealer and pay a few extra $$. I would highly recommend Steve Harris Imports, Scottsdale Ferrari or Ferrari of Long Island.
     
  9. Kds

    Kds F1 World Champ

    I agree with everything said here from the car guys on the board.

    If you do not know what you are doing DO NOT go to an auction. We "experts" get burned from time to time...........rookies get fleeced by the shills.
     
  10. vinny

    vinny Karting

    Nov 1, 2003
    158
    R.I.
    Full Name:
    Vincent Pitocco
    What about ebay auctions, Whats the difference? Dont they fall into the same catergory as dealer auctions? by the way, a 91 348 29k miles service done, sold at no reserve for $44100 on ebay a few days ago. What do you guys think? sounds cheap to me. Thanks, Vinny
     
  11. Tony Fuisz

    Tony Fuisz Karting

    Nov 5, 2003
    162
    Bethesda, MD
    Full Name:
    Tony Fuisz
    If you could arrange a PPI post auction end, with the sale contingent on it I don't see how Ebay is any less "safe" than a dealer selling you a car "as-is". Obviously some dealers sell at market plus prices but then are more likely to fix something for you that goes wrong right away.The "send me 2K non-refundable" and the rest in 24 hours auctions seem like an almost guaranteed rip-off.
     

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