Are There Really Deals to Be Had on Online Auto Auctions?

Hope you all had a great holiday season! I know times are tight, and everyone is looking for deals on everything from eggs to automobiles. Recently, I've noticed a lot of auto auction sites popping up, or maybe I've just started paying more attention. But unlike "real" auctions, are you really going to find a sweet deal on any of them? I have my doubts.

The site I pay the most attention to is Bring a Trailer. It covers North America—both the US and Canada—as well as some other countries around the world. You can find a wide variety of cars, trucks, motorcycles, boats, and even motoring memorabilia. Browsing the site is like flipping through a dream catalog. However, when it comes to bidding on the car you’re after, I've never seen the advantage over private or dealer purchases. At least with those, you can speak to the seller and try to strike a deal that works for you.  The truck below was in very nice shape but was listed as having 139k miles.  I was blown away by the selling price of this auction.  Apparently the market price of these are $55,000 to $73,000?!?  LINK

Whenever I see something that looks like a deal, I search previous sales to determine the current market price, considering mileage and condition. Armed with that knowledge, I know when to stop bidding. I've bid on a few Bring a Trailer auctions, and even when they’re no reserve, I've never seen them sell low. I was watching one auction that seemed to be going under everyone's radar, and I got a bit excited. But then someone posted a comment saying, "What is happening here? This car is worth double this. Why are there no bids?" I replied, "Hey, maybe shut up, man." He said, "I just want to see the auction sell for a fair price." WHY? He wasn't the seller or a bidder—go away. But, of course, after that, it jumped right up to market value.  Below we have similar cars selling for about the some price with and without a reserve.  The average market value of a 1995 Mitsubishi 3000GT VR-4 6-speed with around 17,000 miles is approximately $30,000 to $31,000.  I understand the other is a 1991 but also has less miles. A 1991 Mitsubishi 3000GT VR-4 with around 10,000 miles typically has an average market value of $28,000 to $33,000.  Both cars are selling for their market value or above. 

Most auctions have a reserve set, so it's not going anywhere under market price. With folks like those policing the auctions, I don't really see anyone getting a good deal off these sites. The biggest advantage they have is that you find cars you won't see in your local paper. And honestly, if it’s that kind of car, you’re not getting it for under market price.

So, with the fees they charge to sell and the lack of rare deals for buyers, I'm really not sure I'd advise anyone to buy or sell on these online auctions.

A Couple BAT Auctions That REALLY Excite Me

 I don't usually post random auctions from Bring A Trailer, but sometimes you see a car that just get the excitement flowing.

First is this low mile 1991 Mitsubishi 3000GT VR-4.  I've always loved these cars and this one is an amazing example!  For those in "the know" I don't need to explain, but the VR-4 was all-wheel drive & all-wheel steering!  It's also a twin-turbocharged V6 putting out around 300 factory hp when new.  The one in this auction has the 5-speed manual and only 10k miles?!?!  CRAZY!  It's all I can do to resist bidding on this no reserve auction.  Mitsubishi 3000GT VR-4

 

 

 

Next up is an  amazing 1972 Datsun 240Zright here in Ontario Canada powered by a BMW S54?!! What??  It's true this amazing ground up resto has the BMW S54 inline 6-cylinder connected to a Getrag G420 6-speed manual.  A stock S54 puts out around 333 hp and while there's no mention of it's current horsepower output the videos posted on the auction sound extremely peppy!.  1972 Datsun 240Z

Vehicle Enthusiasm is Limited By Space

 I've gotten to the point in my career where I have a little extra now and then.  So as a car nut I want to spend it on cars of course.  I see so many exciting vehicles out there, but I've got a one stall garage.  So I've filled my hobby about as much as I can.  I have a summer car in the garage, and a daily in the driveway.  The daily being a 2017 Focus RS which honestly I don't feel good about leaving in the weather.   I also have a 1970 Plymouth Duster 340 sitting about 700 miles away on my mother's farm.  It's been disassembled and was ready for a resto when I decided to go to college instead. It's my first car and I don't know if I'd ever be able to sell it.

I would love to have my Plymouth here with me so I could work on the restoration, but I just don't have the space.  I've been trying to think of a solution such as possibly renting a space, but that creates new issues such as security and availability.

Storage spaces usually don't have power and don't want you working there.  More official locations generally rent at a price point as if they expect you to be running a business from it.  The only real option seems to be renting space from a private person which for me would open an entire closet of security issues.

I've heard several stories of owners letting friends or family poke around their stuff while they weren't around.  I had two friends that rented from a space that had locked stalls under one roof which sounded great.  However the walls didn't got clear to the roof and one night there was a break in.  The thieves hopped the walls and stole everyone's tools.

Ideally you'd want a well lit, secure, private space with power and heat which honestly just sounds like your own damn garage.  I'm just not sure that's enough to send me out looking for a new 30 year mortgage. 

Any suggestions to solve this would be greatly appreciated.

Long Time No See

 Back here with what seems like my once a year post.  Been cleaning up the cars Getting ready for that long Canadian winter.  But before that I'll be heading to the Drive Festival at Canadian Tire Motorsport Park September 7th. Check it out at Drive Festival.  If you're in Ontario maybe I'll see you there.