Cautionary Notes for Auction Bidders

[Stefano]

Games and special deals have been part of the auction process forever. Buy backs do happen but were more prevelent in years past.

It is generally accepted and most states allow that the auction house can bid or advance a bid to the reserve amount, although it is generally accepted that the auction house cannot directly make a bid against a bidder once the reserve has been lifted or met.

There was an extensive federal investigation into "auction buybacks" not long ago.

Some auction companies expressly forbid buybacks via their consignment contract.

Certainly you can have someone protect and purchase your car, but seller and buyer fees are due and that is generally 20% of the hammer price, Title will generally transfer and sales tax is due at some point.