ZL1 #9 Barrett Jackson - Where's Waldo

[DW31S]

Originally Posted by Too Many Projects

So BJ gets 81 THOUSAND dollars to sell that 1 car !!! Isn't that near legal robbery ?? Holly crap, I gotta start an auction house. I'll undercut them and only charge 4 to the seller and 5% to the buyer... Anyone want in on that action ...

There is a whole lot more to the auction business than just what transpires on the block. The auction, in essence, is a clearing house that guarantees the seller will get paid with proper funding, and the buyer will receive a negotiable title. The auction house receives fees from both the seller and buyer to provide these services, and to attract live, as well as off-site buyers. The auctions work for the seller, not the buyer. Mecum often works with the buyer and seller on their fees, but that isn’t to benefit the buyer/seller; it’s to benefit the house, as there are NO fees (other than registration ) unless a vehicle gets sold. As Stefano pointed out, many have tried…the main problem with starting an auction (especially one that consigns and offers classic cars) is staying power. Few have the bankroll to write a check and guarantee that it can be cashed, for say, a couple mil, to a seller, only to have the buyer’s money bounce. The seller is entitled to be paid as he agreed to the terms (fees) and provided a clean title at time of sale. Trust me, it’s not as glamorous as it appears on television. There are numerous ways a buyer can try to weasel their way out and if they’re successful, the auction owns that particular vehicle. I can think of a few fairly well established auction houses that either went belly up, or closed beforehand.