Chris' view
More then a few!
No Reserve , well maybe
      I've been to quite a few auctions over the years,both buying and selling.I actually sold the Mustang Limo in 2000 down in Scottsdale. Kept track of it ,and bought it back about 3 years laters,but thats a whole nother story. For a while there was a trend for auctions to have all "No reserve" which basically meant that on paper they would show a 100% sales total. Now the term " reserve"refers to the type of auction entry your car is in, you set a price that you would take for your car and make that as your reserve and if the bidding doesnt reach that "Reserve" then the car doesnt sell and you only loose your entry fee not your car."No reserve" would mean that there is no limit and your car gets sold to the highest bidder no matter how low the price.Auction companys do not like reserves,They cant show a sale and make less money if the reserve is not met. You see,they get money from the buyer too! They make it a little cheaper to enter your car at "No reserve" to get more people to try that, but that still didnt get the sale #s high enough. So the scheme they came up with is for some people that have a "no reserve" classic to then set a "buyback" if it doesnt get to a number that the car owner was looking to get, they will continue to bid up until that buyback so the owner can get the car bought back at a reduced fee and the auction gets to show a sale.The gavel can be dropped and "Sold".  Its a win win situation for the auction company and the car owner has a chance of sucking somone in on the bidding and then pull out just before the buyback figure is reached. Pretty clever hah? I've been to  auctions were some cars didnt changed owners yet they are marked as sold. So the next time you go to a No reserve auction. Look around at the bidders and chances are you will see the same guys bidding up cars and not quite winning the bid.
2008-03-25 03:04:49 GMT
Comments (1 total)
Yah,theres a lot of that kind of stuff going on at those things
--Mustang lover
2008-03-25 03:07:27 GMT
Add to My Yahoo! RSS