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IMPORTANT SELLER INFORMATION

 

 

“WITH RESERVE PRICE” VS. “NO RESERVE PRICE”

 

 

There are two methods of consigning cars to the upcoming collector car auction:

 

1. WITH A MINIMUM RESERVE PRICE

           

Under this method, the consignor establishes a minimum acceptable bid going into the auction for his vehicle. We, as the Auction Company, work the bidding as far as possible. If the final bid is equal to or greater than the minimum reserve price, we will automatically sell the vehicle and deduct our 6% commission ($360 minimum) from the seller’s proceeds.

 

If the final bid is less than the seller’s reserve price, the seller will then have the opportunity to say, “sell it” or “do not sell it” after seeing how high the final bid actually reaches. If the consignor elects to sell the car, the 6% commission ($360 minimum) will be deducted from the proceeds.

 

If the vehicle does not sell, the only cost incurred by the consignor is the initial $195 entry fee. We only receive a commission if the vehicle sells - there are no additional “no sale” fees. The majority of consignors elect this method.

 

 

2. NO RESERVE PRICE (ALSO KNOWN AS “SELLING ABSOLUTE”)

 

Under this method, the seller commits to selling his vehicle regardless of how high the final bid reaches. This method is much riskier to the seller who has given up the option of refusing the high bid and is, therefore, not for everybody.

Besides the lower entry fee of $95 (vs. $195 with a reserve price) and lower commission of 4% (vs. 6% with a reserve price), the main advantage to this method is that a “no reserve” vehicle will quite often generate more buyer interest because the bidders know that the vehicle is definitely selling. For example, last year we had a consignor with a 1968 Corvette who was hoping to get $10,000 for the car. He decided to enter it with no reserve price. We listed it on the program as a “no reserve” car and placed a large yellow “no reserve” sign on it. This car then sold for $16,500.

 

If you have any questions, please call George Eber at (615) 496-2277.