Mecum "bid goes on"

[William F.]

There were a good many "bid goes on" after stated bids seemed pretty high at last week's west coast Mecum auction. What do think this usually means??

[Leif A.]

Re: Mecum "bid goes on"

There are a ton of phantom bids (chandelier bids) at those auctions. If a car has a reserve, the auctioneer will run the bid up with phantom bids until he get's close to the reserve, and then when there are no real bids in the room, the car goes to the "bid goes on" area.

[Jim D.]

Re: Mecum "bid goes on"

There are a ton of phantom bids (chandelier bids) at those auctions. If a car has a reserve, the auctioneer will run the bid up with phantom bids until he get's close to the reserve, and then when there are no real bids in the room, the car goes to the "bid goes on" area.

To add, if there is a real bid close to the reserve, they try to get the seller to drop the reserve. I've heard Dana Mecum tell a seller "we have a real bid at XXXX. Drop the reserve and I'll reduce my commission to make up the difference". It's all a big game where the auction house is the big winner in all circumstances.

[Michael J.]

Re: Mecum "bid goes on"

I would bet the majority of those bid goes on cars never had a real money bid.

[John D.]

Re: Mecum "bid goes on"

It seems shill bidding is illegal in Ca. Enforcing it is another matter.

[William F.]

Re: Mecum "bid goes on"

What if a car is offered with "no reserve." Still funny bids?

[Dick W.]

Re: Mecum "bid goes on"

It seems shill bidding is illegal in Ca. Enforcing it is another matter.

According the Uniform Commercial Code (UCC), which CA adopted,

(1) In a sale by auction if goods are put up in lotseach lot is the subject of a separate sale.
(2) A sale by auction is complete when the auctioneer so announces by the fall of the hammer or in other customary manner. Where a bid is made while the hammer is falling in acceptance of a prior bid the auctioneer may in his discretion reopen the bidding or declare the goodssold under the bid on which the hammer was falling.
(3) Such a sale is with reserve unless the goods are in explicit terms put up without reserve. In an auction with reserve the auctioneer may withdraw the goods at any time until he announces completion of the sale. In an auction without reserve, after the auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless no bid is made within a reasonable time. In either case a bidder may retract his bid until the auctioneer's announcement of completion of the sale, but a bidder's retraction does not revive any previous bid.
(4) If the auctioneer knowingly receives a bid on the seller's behalf or the seller makes or procures such a bid, and notice has not been given that liberty for such bidding is reserved, the buyer may at his option avoid the sale or take the goods at the price of the last good faithbid prior to the completion of the sale. This subsection shall not apply to any bid at a forced sale.


With all that said, in CA there is NO enforcing agency to regulate auctioneers. Most states West of the Mississippi there are no licensing authorities unless a city or county has an ordinance. Here in NC we have to operate under the NC Auctioneer Licensing Board which keeps pretty close tabs on auctions.

Dealer only auto auctions are another story. Don't get me started there

[Leif A.]

Re: Mecum "bid goes on"

What if a car is offered with "no reserve." Still funny bids?

No. If a car is offered at "no reserve" it sells for whatever the highest bid is...no need for phantom bids here.

[Mark E.]

Re: Mecum "bid goes on"

Boy, am I naive. I didn't realize auction houses practiced "chandelier bidding", and also assumed it is illegal. It apparently isn't; see:

https://www.investopedia.com/terms/c/chandelier-bid.asp-0

"Although chandelier bidding is legal, provided that any such bids stop short of the reserve price of the lot in question, and provided that auction houses who engage in this practice disclose this likelihood in their auction catalogues, former New York Democrat assemblyman Richard Brodsky dedicated nearly two decades of his political life attempting to legislatively ban the practice. However after the ninth iteration bill finally passed through the Assembly in 2007, it was subsequently killed in the Senate. Brodsky continued unsuccessfully to ban the practice, until his legislative tenure ended in 2010. New York Republican State Senator John Flanagan likewise attempted to pass a companion bill in 2007, explaining: 'Consumers can get hurt when everything isn’t out in the open, when they’re competing against imaginary bidders at an auction.' Not surprisingly, both Brodsky and Flanagan faced staunch opposition from auction houses and also met resistance from many republican legislators. Consequently neither of their sponsored bills became law."

Caveat emptor. Why buy a car in a setting designed to cost buyers $ with their low integrity, albeit questionably legal, practices?

[Dick W.]

Re: Mecum "bid goes on"

No. If a car is offered at "no reserve" it sells for whatever the highest bid is...no need for phantom bids here.

Have I got a deal for you! I have ocean front property in AZ. Being an auctioneer I am very conscious of what goes on at an auction. One auction house it is very obvious that many of the SOLD! SOLD! cars are not sold but just moved to another of their auctions. I also do appraisals and can track auction sales by VIN. I watched one Boss 429 get Sold at four consecutive auctions by one auctioneer. I knew that he owned the car as he had bought five Boss 429's from a friend of mine. I see that quite often

[Bruce B.]

Re: Mecum "bid goes on"

In Mecums contract it states (in legalese) that they can bid up to below the reserve.
This creates a situation where when "The Bid Goes On" the stated "bid up to price" is fake, BS, etc.
It also allows Mecum to still get a commission if the seller sells the car from the "bid goes on" field.
Again, like as in casinos, the house always wins.....

[Barry H.]

Re: Mecum "bid goes on"

Guys, Read the "Fine Print" that is with your "Auction Bidder Documents", It states "Auction Company" (add whichever auction company you want), Auction Co. reserves the right to BID in the "Sellers" behalf up to the "Reserve Price". Which means that you are bidding against the "House" up to the "Reserve Price". Your first bid over the reserve price, you own the car!
I am not sure how this works in a "NO Reserve" situation like BJ Auction Co. Barry Holmes

[Dick W.]

Re: Mecum "bid goes on"

Guys, Read the "Fine Print" that is with your "Auction Bidder Documents", It states "Auction Company" (add whichever auction company you want), Auction Co. reserves the right to BID in the "Sellers" behalf up to the "Reserve Price". Which means that you are bidding against the "House" up to the "Reserve Price". Your first bid over the reserve price, you own the car!
I am not sure how this works in a "NO Reserve" situation like BJ Auction Co. Barry Holmes

From what I know, at least in the past, BJ sells the vehicle no matter the price. In the past they did not allow the seller to bid his vehicle back, am not sure about today but I believe it still holds true.

[Thomas S.]

Re: Mecum "bid goes on"

"The Bid goes on" - wasn't that a Sonny & Cher song?

Interesting information. I too did not realize that they could do this stuff.

[Dick W.]

Re: Mecum "bid goes on"

I am not sure how this works in a "NO Reserve" situation like BJ Auction Co. Barry Holmes

It is unethical for the auctioneer to run the bid in a no reserve auction. In NC if the auctioneer gets caught he could lose his license for a period, even forever.

From the NC Administrative Code, section .0600

Most states that have licensing laws use this or a variant in their rules and regulations.