Mecum "bid goes on"

[Jack H.]

Re: Mecum "bid goes on"

Maybe Dick or someone can help with what I've witnessed at Corvette auctions which never quite made sense to me.

Many years ago when I was looking to buy my current Corvette, I scoured multiple sources, and went to several auctions, most of them Corvette only auctions. So in this scenario, I was "the end of the rainbow" buyer ready to pay full retail prices.

What I witnessed at several Corvette auctions was a big-name Corvette dealer with the winning bid on a car where the seller was ultimately another big-name Corvette dealer. Many cars seemed to following this pattern, i.e. big name Corvette dealers swapping cars at auction? The strange part to me was the winning bids were way beyond retail prices. Prices that even the "end of the rainbow" buyer like myself wouldn't consider, especially after auction fees, etc. That just always stuck with me, and I saw it at multiple auctions. I rationalized that maybe these buying dealers had a particular customer that was willing to overpay for a specific car or car meeting certain attributes. But with as often as it seemed to occur, I always wondered if some other games were going on or some kind of "collusion" (don't you just love that word now?) with the buying and selling dealers and the auction houses?

Any thoughts on this observation?

[Michael F.]

Re: Mecum "bid goes on"

Beat goes on lol

[Sal C.]

Re: Mecum "bid goes on"

Don't forget "The Mecum Rule"

[Roy S.]

Re: Mecum "bid goes on"

Maybe Dick or someone can help with what I've witnessed at Corvette auctions which never quite made sense to me.

Many years ago when I was looking to buy my current Corvette, I scoured multiple sources, and went to several auctions, most of them Corvette only auctions. So in this scenario, I was "the end of the rainbow" buyer ready to pay full retail prices.

What I witnessed at several Corvette auctions was a big-name Corvette dealer with the winning bid on a car where the seller was ultimately another big-name Corvette dealer. Many cars seemed to following this pattern, i.e. big name Corvette dealers swapping cars at auction? The strange part to me was the winning bids were way beyond retail prices. Prices that even the "end of the rainbow" buyer like myself wouldn't consider, especially after auction fees, etc. That just always stuck with me, and I saw it at multiple auctions. I rationalized that maybe these buying dealers had a particular customer that was willing to overpay for a specific car or car meeting certain attributes. But with as often as it seemed to occur, I always wondered if some other games were going on or some kind of "collusion" (don't you just love that word now?) with the buying and selling dealers and the auction houses?

Any thoughts on this observation?

Think about this! If said dealer has 100 cars, and pays in front of the world 5K, more than a car is worth he has just potentially increased his inventory value by 500,000. It is no risk to him to pay too much for a car in front of the world. Collusion? I suspect that word was created in the exact scenario you have alluded too.

[Bruce B.]

Re: Mecum "bid goes on"

Roy,
The game in my opinion is bid the car up to some level without selling and the implied value of the car is that ridiculous high number.
Mecum deals with dealers and others to get cars through his auctions. As a example (which can not be verified) the Bob McDorman cars went through numerous consecutive auctions until the right number was achieved. Who paid for these repeated auctions, the transportation, etc. Surely not McDorman.
And I hate to say"ask an auctioneer for the answer", it is like "Honor among thieves".
By the way, I do not know any auctioneers.

[Roy S.]

Re: Mecum "bid goes on"

Roy,
The game in my opinion is bid the car up to some level without selling and the implied value of the car is that ridiculous high number.
Mecum deals with dealers and others to get cars through his auctions. As a example (which can not be verified) the Bob McDorman cars went through numerous consecutive auctions until the right number was achieved. Who paid for these repeated auctions, the transportation, etc. Surely not McDorman.
And I hate to say"ask an auctioneer for the answer", it is like "Honor among thieves".
By the way, I do not know any auctioneers.

Bruce, unfortunately in a reserve auction there are so much smoke and mirror antics we may never know. I think in some cases the auction house may have guaranteed a number to the seller, when it does not reach that number the auction house may own it, when that happens you see the car over and over someone trying to wash out with close to their investment. Can't prove it but suspect it might be part of the reason some auction houses brand their own transport these days, because the transport knows when the car arrives from and delivers to the same location. We've all seen it Bruce, it's ridiculous. At the same time I can understand why a seller not understanding all the hype, smoke and mirror's might feel he cant risk a no reserve presentation. In reality he plays right into the trap, and often times is forced to sell because he simply cant continue to pump money into the game hoping to get out.

[Bruce B.]

Re: Mecum "bid goes on"

Bruce, unfortunately in a reserve auction there are so much smoke and mirror antics we may never know. I think in some cases the auction house may have guaranteed a number to the seller, when it does not reach that number the auction house may own it, when that happens you see the car over and over someone trying to wash out with close to their investment. Can't prove it but suspect it might be part of the reason some auction houses brand their own transport these days, because the transport knows when the car arrives from and delivers to the same location. We've all seen it Bruce, it's ridiculous. At the same time I can understand why a seller not understanding all the hype, smoke and mirror's might feel he cant risk a no reserve presentation. In reality he plays right into the trap, and often times is forced to sell because he simply cant continue to pump money into the game hoping to get out.

Roy,
Thanks for your valued opinion.
Bruce B

R

[Dick W.]

Re: Mecum "bid goes on"

Bruce, unfortunately in a reserve auction there are so much smoke and mirror antics we may never know. I think in some cases the auction house may have guaranteed a number to the seller, when it does not reach that number the auction house may own it, when that happens you see the car over and over someone trying to wash out with close to their investment. Can't prove it but suspect it might be part of the reason some auction houses brand their own transport these days, because the transport knows when the car arrives from and delivers to the same location. We've all seen it Bruce, it's ridiculous. At the same time I can understand why a seller not understanding all the hype, smoke and mirror's might feel he cant risk a no reserve presentation. In reality he plays right into the trap, and often times is forced to sell because he simply cant continue to pump money into the game hoping to get out.

BINGO! WE HAVE A WEINER!