(ISeeCars – An online or digital vehicle auction site is nothing new. Since the early 2000s, fleet executives and wholesalers have used the auction market for purchasing inventory and locating merchant lots. Even though retail bidders have had access for more than 20 years to online auctions such as eBay Motors, the idea of purchasing a car via an online auction without ever seeing it or inspecting it before buying was dangerous. At best.
Over the past 20 years, the automotive industry has changed tremendously. eBay Motors sold millions of cars to first-time online car buyers who were willing to take a chance on the digital market. We live in an era where online car buying is not only common but also dominant. This has been made possible by everything from a global pandemic to security-enhancing technology such as high-resolution images or vehicle history reports.
However, the most significant change in the last few years has been the explosion of car lovers who use car auction sites such as Bring a Trailer (or BaT), and Cars and Bids to find their next classic or exotic car. There are many vehicles for sale, including the Chevrolet Corvette Vintage and Ford Mustang GT as well as the latest Mercedes-Benz AMGs or Porsche 911.
It’s not like buying a car from an autotrader or Craigslist. Prices for a used Dodge, Nissan, or Toyota car can range between $ 5,000 and $ 25,000. Many of these collectors and luxury coupes are often traded on auction sites. The highest bidders will usually commit to six or seven price tags.
Spending that much money on a car you’ve never seen is a bad idea. Are sites such as Bring a Trailer and Cars and Bids able to provide high-quality live auctions that are both fair and secure for buyers and sellers? Let’s take a closer look at the sources of the following trailer and of cars and offers and then consider their policies that protect users.
Take a trailerbringatrailer.com)
Bring Trailer was started as a hobby project by founder Randy Nunnberg in 2007. Randy was an avid user of online classified ads and realized that his efforts in finding the best cars for sale online would be futile – if he didn’t see them. BaT was able to build a following of car enthusiasts by bringing along a trailer.
Randy lists the Bring a Trailer community, which was established long before it became a classified ad aggregator and a full-scale auction website, as BaT’s greatest asset. “The community is central and most importantly, and everyone who takes a look at the BAT List and the type and amount of discussion, the manner we interact with our community, and the level expertise in the existing community is a huge asset. Randy agrees.
BaT auctions have a comments section that allows for this expertise. It is almost like watching forums dedicated to sports cars and special interest cars in real-time. These comments are from hundreds of thousands registered members of BAT, who organically find their way to the vehicle auctions where there is the most interest and knowledge.
Randy Nonenberg refers to other factors in the next trailer as the listing descriptions. These listings are meant to avoid the parabolas often found in car sales. Randy explained that the car should be able to stand alone and that it should have the qualities of a vehicle. The community will support the decision to give up the car. Randy also demanded that BaT be committed to customer service. Sites do not get commission if cars are not in reserve. Even if sellers find buyers in BAT, they still receive a commission.
Offers and carscarsandbids.com)
YouTuber Doug DeMuro, who is known for his car videos, founded Cars and Offers in 2020. Doug’s reputation for being able to describe interesting cars as well as interesting details about these cars is very useful in the world of online auctions. Doug’s quirks are what make the online auction world so much more fun. Identification.
With over 220,000 registered users, cars and bids increased rapidly. Doug claims he has data that shows Cars and Bids offer a higher selling price in a wide variety of models than their competitors. He attributes this to the contestants, a focus on modern amateur cars starting in 1981, and the ability for the seller to be reached live. Most vehicles are sold within a week of receiving all information and photos.
Doug acknowledges that he doesn’t have luxury buyers like other sites. He doesn’t have the luxury buyers yet. However, he is optimistic about the strong prices that he can get in the market below $ 100,000 “I am comfortable with a market of $20,000 to $90,000. We know of more such cars, and the data shows that we can get higher prices within that range.
Doug also claims other benefits to cars and bids such as its low buyer fees (4.5%), zero seller fee, and chat support system that assists users before and during the auction. Doug has a large following on social media from the car enthusiasts community. He stated, “We are able attract more attention every auction, which results in more views, higher bids, and more money.”
How do you bring your trailer, cars and job opportunities?
The process for buying and selling Bring a Trailer, cars, and offers is very similar. Both sites require that users sign up with a credit-card to pay registration fees. They also offer a reserve price and no auctions. Sellers can use the support team to help them register a vehicle and to assist buyers and sellers after the auction ends.
Both sites require sellers provide proof of ownership. Sellers are encouraged to take detailed, high-quality photographs that accurately portray the vehicle. It is encouraged to upload a video of the vehicle running and moving. Both sites provide free CarFax historical reports and both allow buyers to ask questions during the auction. Last-minute sniping is not a concern as bids received during a live auction will extend the auction so other bidders can respond.
What are the main differences in bringing a caravan and cars? The differences are not limited to the items listed on each site, but they also include commissions and policies.
Auctions at Bring a Trailer cost $ 99 to sellers who photograph their owners. Sellers who need professional photographers for the photos will be charged $ 250. Bring a Trailer offers a white glove service, which is for high-end sellers who are looking for a top-quality service. The level of service received by the seller will determine the price. BaT commissions are 5%, with minimum $ 250 and maximum $ 5,000.
Cars and Offers allows sellers the opportunity to register vehicles at no cost. The site will also connect you with a photo service offering 50-hour photos starting at $ 149, or 100 photos starting at $ 249. The buyer’s commission on cars and offers is 4.5%, with a minimum amount of $ 225 to a maximum of $4,500.
How can I be protected if there’s an issue at the auction?
This is the most crucial question in any auction or online purchase. Even though there are hundreds of photos and video, CarFax historical data, and a community made up of mixed amateurs, buyers in New York still have a lot to trust sellers 3,000 miles away. What are the instructions for a Bring A Trailer and what protections do they offer someone who spends hundreds or even thousands of dollars on a car he has not physically inspected?
Both sites require credit cards to register for a quote or a phone number. The winning bidder is then charged immediately after the auction ends. Although this discourages buyers from purchasing, it does happen. Randy Nunnberg stated that Bring a Trailer has a 97.7% success rate in completed auctions. This means that only 2.3 per cent of the winning bids went unfulfilled. Buyers who refuse to perform will be charged a fee of up to $ 5,000 and banned from the site.
Bids and cars share a similar policy. There is a lower “failure” rate at closed auctions. But they go further than that by charging the buyer a fee and giving half the commission to the seller in the event of a buyer not completing the purchase. Doug said that buyers may request a “recalculation”, which is a appeal to the credit card company, in order to get a refund.
But what happens if a buyer decides to keep buying a vehicle not identical to the one described at auction? Because of the extensive photography and vehicle history report for each car, this is an uncommon event. It does happen. However, unlike the back charging scenario above, buyers cannot do anything after the purchase is completed and the money has changed.
Despite the rapid growth of Bring a Trailer and Cars and Bids, both buyers and sellers should do their research before using an auction site. These sites are essentially sophisticated systems that connect seller and buyer. These sites are not authorized to inspect cars or people involved in transactions.
You can do due diligence by contacting the seller or buyer before the auction ends and getting to know them. As a buyer, it is important to offer cars that you can inspect and test drive prior to the auction. This could limit your ability to bid at local auctions or make it difficult for you to book last-minute.
These methods may not be the best for buying or selling cars, but they can be wise investments when you consider how much money these auctions often generate. The best policy, despite all the technology available in 2022 is the old mantra:
Buyers and sellers should be cautious
More information from iSeeCars
- How to buy a vehicle in another country
- Carfax vs. automated test: Which one is better?
- The fastest cars less than 50k
iSeeCars.com provides key insights and valuable resources to help buyers find the best car deals. iSeeCars.com’s large-scale data analytics, which uses more than 25 billion data points (and growing), and proprietary algorithms to analyze and score millions of new and used vehicles has helped save users over $ 332 million.
This article Take a trailer, cars and make bids: How online auction sites workOriginally published on iSeeCars.com