Cautionary Notes for Auction Bidders

[EZ Nova]

Originally Posted by Formula455SD

I have never been in that situation personally.

The seller hands the title over to the auction prior to the auction. If the seller "buys" the car back. The seller would have to give the auction both buyer and seller fees in order for the auction to release title and vehicle. It can get very expensive. If they have a friend buy the car back. The sale would go through the normal process as title would technically transfer.

So IF I say a reserve at 1.3 million. I would hand over ownership prior to the auction.

On sale day, I have "someone" bid the car up and it stops with MY bidder at 1 million. MY bidder would have to fork over, 1 mill for the car, and $100,000 buyers fee, I would have to caught up $120,000. I would then get the million from the auction house, but I would have to pay MY bidders $100,000 and I'm still out the $120,000 sellers fee.

So in essence, to "try and see" what the car brings would possible cost the OWNER of the car 22U% of the hammer price? So in this case of high-bid at $1 million, it would cost the owner $220,000 for him to keep his car!

Is that correct? I know fee go down as prices rise, I was just using the base prices.