How do auction prices work?

I would like your opinion on the validity of the average auction prices at BCA. I was tracking a BMW X5 at Enfield on Wednesday, the average auction price was £18,800. The car was sold provisionally for £18,400 and the car was on sale again the next day at Enfield, with an average auction price of £18,000. Do you think it is possible that the average price would alter that much in such a short time? I wonder if the car did not sell again and is appearing for the third time, still at the average auction price of £18,000, a few days later.

Asked on 15 June 2013 by DS, via email

Answered by Honest John

The average auction price is the average sold price throughout BCA auction centres country wide, not just that one auction centre. If this X5 is not selling it's because there are no real bids for it, or because the owner has managed to set a reserve higher than the average selling price. Demand for 4WDs and values have dropped now that winter is finally over. If you really want it, bid up to £18,000 and you will probably get it. Do not bid more than £18,000. If the auctioneer pretends to get a bid of £18,100, shake your head when he looks at you again. You might then magically find you have got it for £18,000.

Tags: auctions selling

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