Exploring the Pros and Cons of Classic Car Auctions vs. Private Sales

Often, classic cars reach their peak in value, and owners decide it’s time to sell. This might be for a variety of reasons.

Classic car auctions are an attractive option for selling a car. They’re quick and easy and bring in better prices than dealership sales. However, they have their downsides too.

Buying at an Auction

Buying at a classic car auction is a popular way to acquire classic cars. It takes a bit more work than walking into a dealer showroom and selecting a model from a stack, but it’s often less expensive. The seller sets the price for the car, and buyers bid against each other until someone meets or exceeds that price. The winner pays the final price, including any auction fees, and arranges transport for the vehicle.

One big drawback to buying at an auction is the lack of opportunity for a thorough inspection. The buyer can walk around the car, start it up, and maybe put it in gear if it’s a running, driving automobile, but that’s about it. Online auctions offer a “condition report” or other description that can help buyers, but these reports aren’t always accurate and may leave out important details. If you’re a serious bidder, Reed recommends visiting an in-person auction before committing to any purchases and inspecting vehicles in person.

The other drawback to auction purchasing is the fact that you’re dealing with a stranger who might not have your best interests in mind. Some auction sellers are collectors and will want their classic to go to a good home, while others might need cash or simply feel their classic has reached its peak value and it’s time to move on.

If you’re buying a classic car at an auction, you’ll also need to pay attention to the terms and conditions of the sale. For example, most auctions require the winning bidder to complete the purchase within a specified amount of time or risk penalties and legal action. Some require payment within 24 hours and may charge high auction fees for credit card payments.

Many dealers sell their inventory through consignment shops, where private car sellers give them their cars to sell. In exchange for handling the advertising and drumming up a buyer, the dealer will get a cut of the sale price. Some dealers buy cars outright and attempt to flip them for profit. In either case, a reputable dealer will run a vehicle through an inspection to ensure that the car they’re selling matches the advertisement.

Buying at a Private Sale

As a classic car owner, you will probably need to sell your beloved automobile one day. This might be because it’s time to buy a new vehicle, or the classic car has reached its peak in value, and there is no longer any point hanging onto it as an investment. In either case, knowing how to make the best decision for your situation is important.

Buying from a private seller can be advantageous because you are dealing with the actual owner of the vehicle. This allows you to inspect the car before you bid, which is not always possible with a dealer. Private sellers are also more likely to disclose any issues that may be present. For example, if a classic car has a restoration project at a professional shop, the owner will likely mention it in their ad.

Another advantage of buying from a private seller is that you can negotiate with them directly to determine the best price for the vehicle. Private owners usually do not have the overhead costs associated with a dealership, so they can pass on savings to you. Many private owners use Kelley Blue Book as a guide to help them determine an appropriate selling price for their vehicles.

On the downside, finding a classic vehicle from a private sale can take some time. In most cases, you will have to look through sale ads on various websites rather than one centralized database. This can be frustrating, especially if you are in the market for a specific vehicle. In addition, private sellers may not be able to provide you with the same level of detail regarding a vehicle’s condition as a dealership can.

As a buyer, you will want to avoid auctions if at all possible. This is because the prices realized at auctions can often be higher than what you would get from a private sale. Moreover, you will be competing against dealers who have extensive salesmanship skills and are skilled at raising the sale price of cars. In fact, some of the highest prices for classic cars in recent history have been realized at auctions.

Buying at a Dealer

In some cases, it may be better to work with a dealer rather than a private seller when buying a classic car. Dealerships can help with the process by handling paperwork, providing test drives, and offering financing options. They also have more experience and expertise working with cars than a private seller.

Another benefit of purchasing at a dealership is that they often provide warranties on vehicles. This can help buyers feel more confident in their purchase and reduce the risk of being ripped off by a dishonest seller. Auto dealerships are also required to abide by Federal Trade Commission laws, so they should have higher standards of integrity than a private seller.

A disadvantage of purchasing a classic car at a dealer is that their prices are typically higher than auctions or private sales. This is because dealers have to cover the costs of advertising, storage, and other overhead expenses. However, buyers can sometimes get a better price on a classic car at an auction by visiting multiple auctions before placing their bid.

One of the main reasons people visit auctions to buy cars is their large selection. It’s possible to find exotic models and one-of-a-kind concept cars that would be difficult or impossible to find at a dealership or private sale. Moreover, auctions can offer a more exhilarating shopping experience due to the fast-paced nature of the event. It’s easy to get swept up in the excitement and make a bid you may regret later.

Buying a classic car can be an exciting and rewarding process that can either satisfy a craving or serve as a long-term investment. Whatever your reason, it’s important to do your research and carefully consider the pros and cons of each option before making a decision. By exploring the options available to you, you can ensure that your classic car will be a source of enjoyment for years to come. Good luck!

Buying at a Private Party Sale

In a private sale, you’re dealing directly with the owner. This can often lead to a smoother sales process that doesn’t involve any extraneous fees. It also means that the seller is likely more willing to negotiate. Private sellers may also be more familiar with the car than a dealer is, having owned it for some time and having detailed records.

This knowledge may lead to better pricing as well. For example, a private seller might be able to provide more information about the car’s history or tell you about any minor problems it has had in the past. This information could help you decide whether the car is right for your needs and budget.

One downside to buying from a private seller is that they are not professional car dealers and cannot provide you with the same level of service or support after the sale. When you buy from a private party, this is a risk that can be mitigated by finding a trustworthy seller and conducting thorough research before making your purchase.

Another potential downside is that some private sellers may overprice their vehicles. This can happen because of their emotional attachment to the vehicle and their frame of reference for its original cost. It can also happen because of the need to move on with their lives and get rid of a classic car that no longer fits their lifestyle.

It is also worth bearing in mind that a private seller will not have the same costs to cover as a dealer. In addition to the sales commission, there are usually advertising costs and the cost of cleaning and preparing the car for sale. This can add up to a higher price than you would pay at an auction or with a dealer.

If you’re interested in a specific classic car, there are many online and live auctions that cater to collectors. These include Barrett-Jackson, Mecum, Gooding & Co., and RM Sotheby’s. Other specialty auctions can be found on sites such as Bring a Trailer and Hemmings Auctions, which offer a curated mix of vehicles.