Mecum Auction on now - Results

[anlauto]

Keep in mind that the price shown for all of those cars that are listed as sold include the 10% buyer's premium. I think that the current value is more truly reflected in the actual selling price.

I tend to disagree because it shows what a buyer is willing to pay in total. Reguardless of who's pocket it ends up in, when buying a car you still have to factor it into the price you're willing to pay 

[anlauto]

Glad to see a 340 1971 Cuda selling for over $70K because it confirms what I've been saying for years that the 71 Cuda is the hot ticket !

[303 Mopar]

Keep in mind that the price shown for all of those cars that are listed as sold include the 10% buyer's premium. I think that the current value is more truly reflected in the actual selling price.

I tend to disagree because it shows what a buyer is willing to pay in total. Reguardless of who's pocket it ends up in, when buying a car you still have to factor it into the price you're willing to pay 

What about all the cost the seller pays (prep, shipping, commission, etc)?   

[JH27N0B]

What it costs to sell something doesn't factor into market value.
If someone sells their house as- is for 500K by owner, and a very similar house down the block sells for 500K using an agent charging 6% commission, after spending a bunch having professional cleaning, painting and staging done, the house market average for the neighborhood is still $500K.
Selling at the auctions is expensive, $1000-1500 to have it there, 5-10% commission depending on if you have a reserve.  And transportation costs to get it there, maybe lodging and plane fare if the seller is from out of town.
I'm sure discounts are given to brokerages listing a number of cars, and for collectors and estates selling collections, and probably discounts to collectors agreeing to list a high value attention drawing car.

[RUNCHARGER]

Yeah: The market really is upside down.

[blown motor]

@750-h2  Let us know how your brother's car did today. What was he selling?

[pyro273]

Wow, $220K is not enough to take a true R code 1970 Cuda but w/o a numbers matching drive train.  Just wow. 

[blown motor]

70 Cuda convertible - $150,000 This car was bid up to $130K and did not meet reserve. It is now listed as sold for $150,00 plus buyer's premium.

https://www.mecum.com/lots/FL0119-359688/1970-plymouth-cuda-convertible/

70 Hemi Cuda - $220,000 Did not meet reserve

https://www.mecum.com/lots/FL0119-359694/1970-plymouth-hemi-cuda/

70 Cuda - $110,000 Did not meet reserve

https://www.mecum.com/lots/FL0119-359713/1970-plymouth-cuda/

[blown motor]

70 Hemi Cuda - $100,000 Did not meet reserve

https://www.mecum.com/lots/FL0119-359720/1970-plymouth-hemi-cuda/

71 Hemi Cuda - $220,000 Did not meet reserve

https://www.mecum.com/lots/FL0119-359775/1971-plymouth-hemi-cuda/

[750-h2]

@750-h2  Let us know how your brother's car did today. What was he selling?

1970 V code Runner, FC7, white interior, 4 speed. With buyers fee sold for $97,900.

[anlauto]

70 Cuda convertible - $150,000 This car was bid up to $130K and did not meet reserve. It is now listed as sold for $150,00 plus buyer's premium.

The restoration on this car is trash for that kind of money..

[scf100]

71 Challenger Pace car Dont know if real or a clone going Sunday at no reserve
Wasn't someone here looking to buy one?

Look at the car description.....don't know enough about reading the fender tag to know if real..

Nice looking car though

[Cudino]

Keep in mind that the price shown for all of those cars that are listed as sold include the 10% buyer's premium. I think that the current value is more truly reflected in the actual selling price.

I tend to disagree because it shows what a buyer is willing to pay in total. Reguardless of who's pocket it ends up in, when buying a car you still have to factor it into the price you're willing to pay 

I think you're both right.  Yes, at auctions the price the buyer pays includes all of the commissions, so that's the price they were ultimately willing to pay at that moment.  But there's a premium these buyers pay for the convenience of buying a car at auction, combined with the time pressure, sense of competition, and other factors that come from buying within the auction environment.  With that in mind I think it is rare that a buyer could immediately turn around and sell that same car for the very same all-in purchase price on the open market.  Since the buyer was the highest bidder in a high-profile auction it stands to reason they paid a little more for that car at that moment than anyone else would have.  Then, as mentioned in a previous post, consider the amount of money the seller receives.  From the Seller's commission the sellers of Reserve cars typically get 10% less than the hammer price, not including all the other misc costs.  So if the Seller had sold the same car in the open market for the same receiving price he would have accepted much less than the buyer ultimately paid.  Point is, just like the buyer paid a premium under the pressures of the auction environment, the seller also had to accept a surcharge under the same pressures.  So the question is, who is paying the ~20% the auction company is receiving, the buyer or seller?  To my mind, this ~20% premium is roughly shared equally by both the buyer and seller.  So I also tend to agree that the real world "market" values are probably closer to the hammer prices, halfway in between both the buyer and seller of each auction transaction.  To this point, in some private deals I've been involved with, if a seller compares to all-in prices of auction cars I tell them they are being too optimistic, and similarly when a private buyer refer to the amounts sellers receive at auction I tell them they are trying to get too good of a deal.

- Wade

[scf100]

Well a lot of these cars sold at auction DO end up in dealer showrooms as they do not pay the full 10 percent commission because of their buying volume.

Just look at some of the over priced cars that a dealer has and you will see......

The Gold Bidders at Mecum sitting on the back tables are usually dealers bottom fishing or buy a great car they know they can tack on another 5-10K and still sell the car

I sold a car at Mecum Kissimmee couple years ago and turn out a dealer bought it and took it straight to Mecum Houston and even used my pictures in the auction catalog !

[anlauto]

Okay, that makes sense Wade