I've just returned from a BCA auction and was amazed that of all the cars entered in the main dealer section, only two had the hammer fall. Everything else was provisional. This mirrors the recent report in the news section. Some of the cars were decidedly rough, yet they appeared to be looking for above book!
Are they just getting greedy, or do they know something we don't!
|
The auction house I used to go to was full of dealers saying "I can't believe this place, it used to be so much cheaper." and all the cars were going for a really high price.
Most of the bids were provisional as well. I wish I knew where to go to get the really cheap cars!
|
|
'Book' price is derived from auction prices - not the other way around! Book prices are also only a national approximation - there can be strong local variations.
|
|
But they're obviously setting reserve prices way above what people are prepared to pay (even private buyers)
|
But they're obviously setting reserve prices way above what people are prepared to pay (even private buyers)
this happens when people (either sellers or buyers) have obviously not caught up with the law of supply and demand. and i suspect that in this case the sellers have yet to realise that with last week's rise in interest rates, more pain is still to follow.
i have been tracking the prices of a speciifc make/model/specification car on autotrader and the same cars have been languishing on there for weeks on end at about 20% above what i.m.o. would be a fair trade selling price in the current climate.
|
Friend went to auction recently and over the course of 3 weeks watched the exact same car.
First week bid up to £7500 but not sold
Second week wen to to £7400 but not sold.
Third week she got it for £7200.
This was a motability auction and the guy from motability was on the podium as well as the auctioneer. Maybe he liked the look of my friend, or he realised that prices were falling and maybe he had originally set his figures too high?
|
|
Its never been unusual to see a car come around a couple of times - often the fleet manager just lives in hope that someone will take a shine to it and bid. They will get the message by the third time though. Obvioulsy the auction houses like to see the cars shifted so I suspect that they 'have a word' with the fleet manager if a car's been around once or twice and is on a provisional.
|
the power is in the buyers' hands, if they hold off long enough- but could they?.
It is really a game of poker and who blinks first, incredible.
But interest rates up , the economy has been good for so long it must go pear shape soon, butwhen is soon?
If I only I knew that.
When the Chinese start making 'decent' cars I suppose , like puters etc
( the one I'm writing on cost less than £200 with a spec my employer could not afford 10 years ago)
Wait till that comes to the car market
|
<<< Obvioulsy the auction houses like to see the cars shifted
Not convinced myself, if a car doesn't sell the seller still pays a fee. At my local there's a few cars that have been put straight back in about 10 times now after being bought. Car obviously has serious problem. Each time the seller pays to 'list' it, and the 'buyer' pays to 'buy' it, and then the new 'buyer' becomes the seller and pays the seller's fee to list it again... they must make a fortune.
But even if a car doesn't sell (which I know is what we're talking about here), the seller still pays the fee, so I can't see the auction house being too bothered... they're still making some dough out of it.
|
But even if a car doesn't sell (which I know is what we're talking about here) the seller still pays the fee so I can't see the auction house being too bothered... they're still making some dough out of it.
The big fleets have contracts which are quite different. In fact I gather that the auction houses make remarkably little on some of the cars they sell for these major fleets - and only get money when the car is actually sold. That's what I've been told by people who are in a position to know these things (if you know what I mean... ;-)
|
As Aprilla points out, the big fleet companies (and large dealer groups) who have major contracts with the auction houses are not paying the standard entry fee......!
Certain cars do indeed often do the rounds. Usually by the 3rd or 4th time they give up and take whatever is offered or try another auction house. There were a load of cars from a certain fleet seller at a BCA auction this week which all clearly had Manheim stickers under the BAC ones..... ;)
|
3 times I have enquired about purchasing my wifes company cars at the end of the lease period and every time they were asking for nigh on dealer retail for them. Needless to say didn't bother.
Thing is- who does the economics on these things. By the time they pay the auctioneers, the people to come and pick 'em up, plus the admin time would they not be better just dropping the price
|
|
Forgive my ignorance, but when people say a car bid to £XXXX but didn't sell, how come? I thought that if you put your hand up at £XXXX and no-one bids £XXXX+1 then you have bought the car.
|
Most id not all fleet cars will go in with a reserve. The auctioneer will start below reserve, and take the bidding up. Only if it makes reserve is the sale complete. Sometimes the auctioneer will contact the seller if the highest bid is just under the reserve, and get the seller's approval to complete the sale.
Most auctions won't accept cars over XX age, or booked at less than £XX, with a reserve. That's the place to pick up that Metro for £70!
|
|
Leasing companies will do that to discourage private buyers,they do not want people moaning about the car that they have bought that then develops a problem and expect the lease co to pick up the bill.Too much expectation and 'its not fair'these days and the leasing companies cannot be bothered with it.
|
