Auto auctions: Some tips for buying and selling

Buying or selling a collector car can be rewarding. Trust your instincts, do your research and be prepared – and follow these simple words of wisdom.

WHEN BUYING

Inspect the car thoroughly: Open the doors, hood and trunk. Lift up liners and rugs and peek underneath the car. Ask the seller questions: Has the car been in an accident? Was it salvaged or flooded? Are the fuzzy dice included?

Know the rules and register: Auctions charge $100 to $500 to register as a bidder. Unless you're a regular customer, most require a bank letter of guarantee if you plan to pay with a company or personal cheque. Bidders must sign a legally binding bidder's agreement.

Know the numbers: Be sure to consider the exchange rate, as well as the buyer's premium of eight to 12 per cent that you must pay. In addition, when importing a car into Canada there are duties (6.1 per cent if it wasn't manufactured in North America) and taxes (GST and provincial tax upon registration). Transportation costs vary but $2,000 is the average from a Southern state, plus brokerage fees incurred at the border.

Look at the paperwork: Build sheets, tank stamps and any paperwork that verifies that the car is what it claims to be are invaluable.

Control yourself: Avoid too much alcohol and bidding on a whim – it can be dangerous, as I found out when I once bought a bright pink Oldsmobile Starfire. It's hard not to get excited in the midst of an auction frenzy. When it's your dream car on the block, don't fall into thinking "what's another $1,000 in the scheme of things?"

Practise auction etiquette: Some auctions run cars through quickly – make sure you're bidding on the car you want. Be clear what amount you are bidding. It's gauche to try to squeeze the price up by a minimal amount when the auctioneer is asking for bids by a set amount.

Know your limit: No matter what happens, remember that in a few minutes another cool car will drive up on the block.

 

WHEN SELLING

Pick the right auction house: Choose the auction that best suits your car's audience. Big-name auction houses with good reputations will provide the largest pool of potential buyers.

Reserve or no reserve? By naming a set minimum you have less risk of having it sold for a song. But when there's no set reserve the consignment is cheaper and you're guaranteed to get some money to shop the other auctions.

Timing: It may cost more to have your car on the block during the peak of the auction but prime time usually brings prime money.

Make your car sparkle: Unless your car is a "barn find" and advertised as such, there's no point in keeping the original 1957 dust on the hood. Wash, wax and show some love.

Have your paperwork: Got an original bill of sale, magazine articles or historical data? Having any and every piece of paper about your car raises its worth to the true collector. Your registration showing you as the legal owner of the car is a must-have.

Be fair: Know what your car is worth and be realistic about what you can get for it. By selling with a reserve you can easily walk away with your car back. If the bid is just a hair away from what you want, it may be in your best interest to just sell the car.

 

–Nika Rolczewski

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