Should You Sell Your Classic Car At An Auction?
There are tons of car enthusiasts across the nation (and the world for that matter) that are looking to acquire new classics. Vintage auto owners looking to sell have more options than ever before. One option you might want to consider is selling at a car auction.
What is a Car Auction?
A car auction is a facilitated auction for car owners to sell their classic cars. Owners will pay to have their automobiles entered into the auction or pay a percentage of the final sale price to the auctioneer.
In typical auction format, the cars will be presented one-at-a-time and a few specifics and details will be shared with the viewers. Often times, those at the auction will have already had a chance to view the vehicles or they will view them once first before the bidding begins.
The Benefits of Car Auctions
Selling your classic auto at an auction can be a good idea and provide a very positive ROI. There are a few benefits that are inherent to auctions:
1. Guaranteed Exposure
If you bring a car to an auction that usually has 100 interested buyers then you can be sure you’re going to have 100 interested sets of eyes on your ride. Finding buyers can be hard, so using an auction is a good way to ensure your classic some attention.
2. Buy-Ready Viewers
Perhaps the best part of selling at an auction is not the amount of people viewing your car, but more importantly the state of mind they are in. These people came to buy a car. You’re trying to sell yours.
That’s a perfect arrangement.
3. Natural Competition
Due to the natural competitive spirit of people, auctions can cause bid-wars and drive of the price of your sale. While it’s not always common, getting two fiery bidders going head-to-head for your auto can be potentially rewarding.
The Cons of Car Auctions
While an auction can be a rewarding experience for a seller, there are many cons that come along with it.
1. Expensive Fees
The auction house knows that they have a good thing going. You won’t just get in your car in there and sold for free.
Selling at an auction can cost a pretty penny and really drive down your ROI
2. Risky Return
You will likely want to place a reserve on your car in order to ensure a certain return. This is a bit of a risky practice because you don’t want to place your reserve too low and not get the cash your car deserves.
This requires a bit of strategy and understanding of the market. This can become as specific as finding out the common selling cars and price points to each specific auction house.
3. No Sale
There is a real possibility of auctioning off your classic and not selling it. This comes back to your strategy when pricing your reserve.
If you play it too safe, your car may not generate any interest and you’ll have to leave still with your car and short of luck until next time.
The Best Way to Sell Your Classic Car?
While auctions are a feasible option for sellers, they involve a lot of work and understanding to price your car effectively. Another option you might want to consider is using an experienced broker.
Classic car brokers can take over all of the work for you without being pricey. You don’t have to worry about selling in one shot like at auctions and you also don’t have to do any of the market research or upkeep on the car.
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