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| Autos |
Under the Hood of the Auction
Michael Duffey
01/01/2004
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Those unable to preview the car prior to the day of the event can sometimes discuss the car with its owner: Smart, well-prepared sellers stay with their car to answer questions on the day of the auction. Some have prepared handouts with copies of important documents or photo documentation of the restoration, history or other not-so-obvious features. The buyer’s expert can quiz the owner, and though the owner may not permit a test drive, buyers can at least hear the car’s running, check the function of lights
and switches, check the underside for leaks, and perhaps get an idea of the owner’s real expectation of the car’s performance on the auction block. If the seller has paid an additional consignment fee for a prime time spot, he probably hopes to get top dollar. The first or last cars to cross the block are almost always less expensive, with fewer bidders in attendance at those hours. Many of those early and late entries are "no reserve" and might sell for bargain prices. Experts should assist in establishing a fair price for a given car, as well as in determining whether the buyer’s target price is in line with verifiable sales. This equation can be unpredictable: Researching advertised sales prices of a particular car will not always yield successful results because some cars bring much more money at auction than the typical advertised price, while others do not. Finally, the buyer’s target price point must include the buyer’s premium (usually 8 percent) and transport (seldom less than $1,500 coast to coast).
Buyers who have the opportunity to do so should attend a field walk. These exercises give buyers the opportunity to see marque experts in action as they
critique dozens of cars, and to ask questions. The organizers of the Barrett Jackson auction, held every January in Scottsdale, Ariz., wade through 5,000 entries to select 800 consignments. This large auction can have as many 1960s Corvettes, Mercedes Benz 300SL Gullwings or Ferrari Dinos as even the most avid enthusiast will normally see in one year—all available for examination in the course of two or three days. If a large auction offers one advantage above all, it is the opportunity to inspect the most cars in the least amount of time.
Auctions run the staggering gamut from huge tents filled with folding chairs, noise, smoke, cars and a no-host bar to European-style events, held in much nicer tents with color catalogs and a no-host bar. Either way, the same rules apply: One must do research, set a dollar limit on a purchase, and keep one’s ears open. Spending a few minutes in the vicinity of the desired vehicle will likely reveal some of the buzz around the car—or the lack of it. In either case, the education available to a good listener might just result in a more effective bid strategy and a sounder investment.
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