Re: Auction: '50 Super Eight, Stillwater, MN, June 6, 2020

Posted by Mike Grimes On 2020/4/12 9:33:02

Auction reminder; Usually the buyer pays a 10% premium, seller pays 10% selling fee; so a bidder wins at $9,000 bid on the floor; they pay $9,900. The auction website price info includes the 10%. So this transaction on the auction results website would be reported at $9,900.

The seller pays 10%, so the gross for the seller is $9,000 less 10% or $8,100. The seller must get the car to the auction. To make the math easy, $1 per mile. So for a car that is transported 500 miles to the auction site, the seller nets $7,600 ($8,100 less $500) less any detailing or other expenses, on a $9,900 reported selling price.

Therefore we have "Bring Your Trailer" and the new Hemmings internet auction sites to help both the buyer and the seller avoid the service fees of the auction process.

Of course for the seller, with an auction there's always the emotional buyer. I saw a 1970 pink VW Bug sell for $65,000 at a Gooding auction because two ladies said it was worth $65,000. Go figure.

Good luck.