Denver Mecum Auction

[kent_goins]

Just spent all day Saturday at the Denver Mecum Auction. Some interesting numbers across the block...Generally I consider Mecum to be the lower budget auction relative to Barrett Jackson or a couple of others. Certainly Denver prices seem to be lower than the east coast and west coast auctions. I find the Denver auction a opportunity to pick up a good deal. Shocks me to see some of the cars run through this auction that should be at Barrett or a better venue. All that said, it was a mixed bag on bidding with some real shockers. Cars that seemed very deserving of 6 figures were in the low 30's to 40's. There were a few 1960's VW bug vans which brought over 100,000!!!! Yes, you read that right. Seems I bought the wrong brand again. I should have just collected VW's all my life Now everybody is chasing their tail to build the VW vans to capitalize on the latest cocktail of the moment...pure stupidity!!!! My brother owns 2 and used to be a lead mechanic at the Beetle Barn in Stillwater, Oklahoma. I remember when you couldn't give the NAZI roadblocks away just a few short years ago. Oh and did I mention, they generally were found on the side of the road burned from the poorly designed fuel line which runs over the top of the air cooled engine.

One other item which I presume is standard for auctions but seems to be a downer for me is the cost to sell. Mecum was charging 10% of gross sale to seller and 10% to buyer as well as a 1000 dollar entry fee for Friday or Saturday listing. Seems to me based on that, if I am going to sell my hard earned mopar at an auction, it better be fairly high pedigree with papers and rarity. Otherwise, in this market, you will take a bath after all costs are covered. I would say most of the cars at the Mecum auction took a bath based on cost to restore.

Who can ever guess the fickle behavior of the consumer public...lamb chops today, hot dogs tomorrow...

[303 Mopar]

One other item which I presume is standard for auctions but seems to be a downer for me is the cost to sell. Mecum was charging 10% of gross sale to seller and 10% to buyer as well as a 1000 dollar entry fee for Friday or Saturday listing.

Don't forget the TV money, general ticket sales, bidder ticket sales, alcohol/food, vendor sponsorship including onsite booths, clothing and merchandise sales, etc. that Mecum is bringing in.  They are capitalizing on it and I really don't blame them as it was started from the ground up by their family.  Good for them if they can get it.  BJ, Russo and other higher dollar auctions charge more on both the seller and buyer ends, and some don't allow a reserve so if you enter a car you get what you get.   

[kent_goins]

all true what you guys say. I agree they should capitalize on every angle as is just good business....However, having been to BJ, Russo and Mecum, I think I will keep my mopars and enjoy them until I am forced to sell or cannot sell to a collector myself for a reasonable price. 

[HP_Cuda]

I think it may be a good avenue to buy (with great inspection) but not to sell.

Monterey Mecum is coming up.

[JH27N0B]

Dana Mecum has to keep up the payments on his Lake Geneva lakeside Mansion and his Citation jet somehow! 
What gets me, is how they advertise a certain number of cars will be at the auction, and when you see the final listing there are far less cars.  For example, here at the Chicago auction last year, they advertised 1000 cars.  I don't think there were much more than 500 actually there though.
And not too many years ago, it was $10 to spectate.  Now it's up to $30.  The cars here at Chicago have gotten somewhat mediocre, so even though the auction is only around 4 miles from my house, I may take a pass on going this year as $30 is a ripoff.
I did make the trip to Indy in May and it was great, number or cars and quality of cars was outstanding.

[303 Mopar]

What gets me, is how they advertise a certain number of cars will be at the auction, and when you see the final listing there are far less cars.  For example, here at the Chicago auction last year, they advertised 1000 cars.  I don't think there were much more than 500 actually there though.

I did make the trip to Indy in May and it was great, number or cars and quality of cars was outstanding.

Mecum and BJ have added more auctions to cove the U.S., again capitalizing on the opportunity. I agree there are too many locations now, but they still have a high rate of cars that sell.  I think the good quality cars for Mecum are still in Kissimmee, Indy, maybe Houston, and Monterey (more high end cars).

[kent_goins]

I concur on the spectator pass....30 bucks is definitely highway robbery and I was taken back by that at the door. Car shows are usually free for spectators and that is all this is to a spectator. But hey...I didn't have to go. They are just getting fair market value on all aspects of the event and that would be considered good business practice. Whether it's ethical or not is another story...morality comes in all shapes, sizes and flavors these days. Chances are....I will not go next year...And yes, it's a buyer's venue with healthy inspection. Definitely not to sell. All that said, I am glad I experienced BJ, Russo and Mecum over the years on multiple occasions to understand how the system works. Everyone should understand all the avenues for transferring their valuable collector vehicles to new owners.

Just a side note and a bit of  , I had a feeling I was in a den of snakes the last time I was at BJ near the front line on a Saturday night. The bidding sales people feel like extremely pushy and high pressure 70's used car salesmen to me...Oh wait...They are used car salesmen. Where else can you pay too much for a car and everyone cheers the higher the price goes  It is a unique experience indeed.

[340challconvert]

As I read members comments, I have to agree with a lot of what has been said here.
The auctions are high pressure with the "salesman" trying to stir emotion in people bidding on cars. Yea, I know it's their job.
It is a great deal for the Mecum's of this industry.
They are making money hand over fist.
They get a buyers fee, and a sellers fee at high percentage rates of the sale. And now charging $30.  just to be a spectator?

I think the auctions are often used to sell very high end cars and those individuals defend the system: it is a means to move or flip the cars they buy to make a buck
There are some  collector cars that go through at reasonable prices, but I think the auctions have also inflated prices over the years.
It is almost impossible for the average Mopar or other enthusiast to actually afford to buy a car.
Sometimes even ebay surprises me with the recent sale of that AAR cuda in shell form and parts for 37K needing restoration.
The market has gotten away from the average person and is now populated heavily with dealers, and flippers looking to make a quick buck.

I just recently posted the Mecum sales auction result for AAR cudas over the last 2 1/2 years.  There was an AAR that was purchased one year ago and the buyer put it up for auction again at the same auction house, selling it for 10K more.

I am no fan of the auctions: the auction gets 10% of the selling price just for selling the car. Yea I know there are costs and fees etc.  Most other business operate on a 2-5% profit margin.  I think they are getting too greedy.  Who are the individuals who actually have the money to spend 80K and up to the stratosphere for a car.  God bless those individuals or businesses, but these are not the average enthusiast.
Great for those who need to sell their car, but this now big business for the auction houses.

I love the comment by Kent above about the VW Microbus selling for over 100K!  I saw that sale on TV. Who is buying this stuff?

I would look for other sources if I wanted to buy a Mopar including our own web site. The prices are more realistic in some cases.

Sorry for the long rant: but I feel the average guys pain on this!

[HP2]

VW buses are the new hip way  of travel for retiring boomers and  work remote millenials. Several articles featuring them in some more mainstream rags have fanned the flames.

[Mickm]

I had a friend take his Boyd Coddington bodied roadster to BJ. He was out expenses for he and his day for a week, gas, hotel rooms, food, initial BJ fee, extra for detailing prior to it coming on the stage, extra for dad a bidding paddle.y
The hoping price was $150K. The bidding only got to $95K so his dad bid thinking they would at least get over $100K. Unfortunately, the guy never bid again so they bought their own car and had to pay the load on both ends.
He said, when the smoke cleared, it cost him $20K or so, to not set his car. lol

Cheers!
Mickm

[kent_goins]

Yes...my thoughts exactly. The high profile auctions seem to be more a place for the rich and famous to have a reason to get together and spend some money. I think the lesson is...Don't be a gold miner, be the merchant that sells all the picks and shovels to the miners, and the saloon and the brothel, etc...Those are the real gold miners

[Roadman]

           I've watched Mecum Kissimmee grow over the years from a few hundred cars to over 3000 . Several bars, food court, vendors, etc. Dana Mecum has built a huge empire, and I applaud him, but last year was my final visit. I heard a rumor that gen admission is going to $40.00. Not worth it IMO. 

[340challconvert]

Charging $40 just to look at the cars is outrageous.
Money grabbing and greed while it lasts.
No longer for the  regular guy!