Cautionary Notes for Auction Bidders

[lycan]

Originally Posted by LT1vette

Here's a question for lycan;
How does the owner buy back his own car? Would the $$ have to change hands (go thru the auction house) and ALSO...does he have to pay the buyer/seller fee to the auction house?

Seller, or seller proxy, simply bids on the car. If he wins, it sold ... to himself It could be considered a "hidden reserve".


Buyer & seller fees ... probably yes, but i think those fees are more negotiable than one might imagine. I've seen live auctions, where the bidder is being encouraged to go higher (like, always) and he responds with something like "I'll go x higher, if the buyer fee is lowered by y"


Of course, if the seller and/or buyer is a big customer, or even somehow affiliated with the house ... those fees are probably even more negotiable!


PLEASE NOTE: The auction house may, or may NOT, know if the seller is bidding (if the seller is clever about using a proxy). The real point is, you never know who you're bidding against!
Don't try to chase, or outsmart a ghost ... my advice: set your maximum (based on research, as described, plus a passion factor), and stick to it.