Buying and Selling at Auctions
To Buy a Collector Car
If you’re in the market to buy an older or collector car, auctions are a great place to do so. Where else would you have the opportunity to see and inspect such a large number of cars for sale in one place? Just choose which auction will have the car(s) you’re interested in by viewing their online catalog, which will usually include pictures and a description of the cars that will be up for sale on a particular date. Most offer a free of charge viewing period for prospective buyers.
Keep in mind that auction companies usually charge a 10% buyers premium for which they will do as much vetting as possible to ensure that the car is what the sellers says it is, and you need to keep this in mind when determining your maximum bid. We find this fee is worth the alternative of choosing a car from a tiny picture with a 20 word description in a classified ad, and then being disappointed after the drive home to find the car wasn’t as advertised.
To Sell a Collector Car
Auction companies do a great job of bringing a large number of qualified buyers to view your car in person, online and possibly through television. The cost for you to assemble an audience of that size would be much higher than the seller’s premium you’ll be charged for this service; usually 8% to 12% depending on if you have a reserve price that needs to be met.
You may be thinking you could sell your car better on your own, and that could be true. But we have only seen the number of cars bought and sold at auction increase dramatically over the years from folks who should have no problem selling cars on their own like celebrities, restoration shops and car makers.