Classic Car Auction Tips

Many people love classic cars, and auctions are a popular way for collectors to obtain these beloved vintage vehicles, and that is why we are providing some classic car auction tips. Auctions are exhilarating experiences; there is an indescribable energy to bidding against other classic car lovers and potentially walking away with the car of your dreams.

Preparation, therefore, is essential. Whether you are a first timer wondering how to buy vintage cars at auction or an avid auction attendee, there is plenty you can learn about the auctioning process. We recommend reading classic car auction tips before you attempt to place the winning bid on a vehicle.

Do Your Research

Prior to attending an auction, you need to do your homework. Review the printed auction catalogue if you bought one or search the auction’s site for more information. Determine what type of classic car you are looking for and decide on a few you might want to place bids on. You should have some backup plans in case someone outbids you on a car you really want. If you come prepared with a short list of options that really excite you, you increase your chances that you will leave the auction with a classic car you love.

Then, take the time to read about each car’s personal history and look at descriptions and photos. Remember to double check the vehicle identification number (VIN) of each car that interests you. These codes will help you determine whether you are purchasing an original model or a clone. The VIN on the documents you are reviewing should match the ones on the car. You should also investigate other pertinent details such as market values, production numbers, recent auction prices, and the auction house’s bidding rules.

If you still feel like you need a little help, do not be afraid to hire a consultant or ask a knowledgeable friend to attend the auction with you, especially if it is your first auction. They will essentially act as your wingman by not only walking you through the process, but also remaining calm and objective throughout the entire experience. Your advisor will also be your second set of eyes when it comes time to inspect the vehicles.

Solidify Your Budget

Before you head to the auction, you should already have a budget in mind. Remember that the selling price is not the final price; there are a multitude of extra costs, including buyers’ fees, registration fees, and taxes. Additionally, most cars are sold as-is, meaning you should allow room in your budget for restoration and repairs. Plus, you may have to pay to transport the vehicle, so consider how much the shipping fees will cost you.

You also never want to bid blindly and potentially overpay. Sure, you may get carried away and bid more than you can spend. However, bids are final, so you cannot change your mind later and revoke your bid. There are no guarantees or warranties on these vehicles either. Simply put, set a budget, and commit to it. You may have to let a car go during a bidding war, but you still may be able to secure your second or third choice.

Arrive (and Register) Early, Stay Until the End

You must register for the auction before you can bid on vehicles. If you are joining the auction via phone or the Internet, be sure to register beforehand. If you will be present at the auction’s venue, you should pre-register to avoid standing in line to fill out paperwork on auction day. Do not forget to have a form of identification such as a driver’s license or passport ready. Bring cash or a certified check with you; you may be able to use a debit or credit card to pay for the vehicle but double-check the event information first to be on the safe side.

If you are bidding in person, we suggest arriving at the venue early to get a good seat—you want to make sure the auctioneer can see and hear you. Use the restroom before the bidding starts, as auctioneers can sell dozens of cars each hour. You do not want to miss bidding on your favorite classic car! Plus, most of the time, you will also receive the opportunity to inspect your favorite vehicles before the auction starts. During this time, see if you can speak with the vehicles’ owners. Ask as many questions as you need to. Ideally, you should start up the car you are interested in and take it out for a test drive before you bid on it.

You may also want to stay at the venue until the end of the auction. The crowd typically thins out toward the end of the event, increasing the likelihood that you will walk away with a good deal.

Obtain Insurance Beforehand

Standard auto insurance often will not cover classic cars. We suggest purchasing specialized insurance designed for classic cars in advance. This way, you will know the vehicle you purchase will have coverage throughout the entire time you own it. A perk of classic car insurance is that it is usually less expensive than a standard insurance policy. Just keep in mind that insurance companies mandate that your collectible classic is not your primary means of transportation.

Arrange Shipping Ahead of Time

When you are ready to take home your new purchase, you will need to know whether you will be driving it, trailering it, or shipping it home. If you plan to ship it, decide as soon as you officially seal the deal. Reputable auction firms do consistently partner with shipping services because they make sure the auctioned vehicles travel from the venues to their new homes safely.

Day of Auction Plan

Let us talk about an essential element at an auction: the bidder (in other words, you). If you have never been to an auction before, you probably think it happens just like in the movies or on television. In America you can well forget the casual tug of an ear or the bidder pointing to his chin to get the auctioneer’s attention. There is truly little subtlety going on when it comes to actual bids, but there are plenty of mind games behind any potential bidding style and philosophy. With that in mind, here is a list of tips that will help you to bid like a pro even if it is your first time out.

Do Your Homework

Never, ever arrive at the auction block without having examined the car or truck you are about to bid on. Have you ever heard the phrase “restored for auction?” Those cars are sucker bait for people who have not examined what they are about to buy. Bright, shiny, often red paint, and a clean convertible top looks fantastic on any car from 50 feet away. You cannot see the rust, you cannot see the salvage title, and you sure as hell cannot see the problems you would have discovered if you had had a closer look. The missing radio that is going to cost $1,500 to replace, those worn seats and carpets, even the incorrect motor looks great when it is a red blob under bright lights, especially if you have been bidding with the help of auction juice. It is also a good idea to attend an auction before bidding at one, so you have an idea of how the process looks firsthand.

Be Careful With the Auction Juice

Did you ever wonder why drinks are free and free flowing for bidders at most auctions? Just like casinos, auction companies know that more booze leads to more bucks. Alcohol has a wonderful tendency to make you think that you are at least a bit smarter than you think you are, if not the smartest person in the world. And guess what? Despite your high IQ and dashing good looks, there is probably someone who knows more about the car you are bidding on than you. And that is alright. Just do not let inexperience, overconfidence, or alcohol cloud your vision.

Meet the Auction Staff. (They are there to help you)

YES, really. At many auctions you will find what are known as bid spotters. At an arena sale, they might be stationed hundreds of feet away equipped with a loud whistle and a flag to let the auctioneer know you are interested in buying. Here is a tip you might not have thought of: You can always find a bid spotter or even someone who works for the auction company and tell him or her you are interested in bidding on a particular lot beforehand. That way, if the car comes up and it is in your price range, he or she will know to look out for you. Other people who can help include the guys who drive the cars on and off the block, and certainly the auction office staff. Well before the car is driven up to the block, ask to see the file on the car and if there is anything else included in the sale (spare parts, hardtop, extra set of wheels). If you make a friend, they can even tell you information that only they know, such as the real reason the seller is letting it go or how desperate the seller is to make bail. That sort of thing can be helpful to let you know if the car is in your price range.

Know Your Bid Limit

It is kind of important to know how much money you must spend on a car. The simple reason is that you cannot pay for more than you can afford. More complex reasons include divorce, a hangover, or just feeling like an idiot.

A good start is to check price guides (or consult an expert) regarding the car you are interested in. Then, determine what your ideal limit will be. After figuring that limit, you might want to just set that maximum price for yourself and then set a realistic amount that you can go over if that is the car you really, really want. Let us say you give yourself a 10 percent overage. That is an easy one, and if you cannot figure out what 10 percent of your maximum bid is, you probably should not be bidding at auction.

Know The Fees

Speaking of 10 percent, that is the typical fee that you will have to pay on top of the bid amount. That is called the “buyer’s premium,” and it is paid directly to the auction house. In some cases, that fee can be more and, in some cases, less. Whatever it is, find out before the auction starts and factor it, you are at your bid limit. Generally, the auction house takes a cut from both the buyer and the seller, and these fees are non-negotiable. Do not forget that in many states you will have to prove you are shipping the car out of state, or you will be responsible for paying sales tax in that state as well.

Watch The Dealers

It is entirely possible you will wind up bidding against people who buy and sell cars at auctions professionally. These people are generally called dealers. Keep in mind that buying and selling cars is their business, and they are going to be better at it than you. That might sound bleak, but you have a secret weapon: To stay in business, they must be able to buy at a price low enough that they can make money on the cars they buy. You do not have to do that, so you can theoretically pay a little more. See? You are becoming an auction pro already. I like your style.

Choose the Right Bidding Style

There are hundreds of ways to bid on a car. Some people like to place the first bid, showing the auctioneer they are interested in the item. Some wait to jump in until near the end when the bidding slows down. Some people like to be loud and exuberant, waving their bidding paddle high in the air. Some do it more discreetly once they have the auctioneer’s attention.

The auctioneer is in control of the auction, which also means he is in control of the bid increments. Occasionally you will be able to bid half the amount of that expected increment. For example, if you want to make a $1,000 advance into $500, you can call it out ($27,500), make a chopping motion with your hands or by mouthing the words. Auctioneers generally hate this but remember: You are not trying to make a friend; you are trying to buy a car.

Also, be aware of psychological tricks other bidders will play, such as raising the bid higher than the current “call” or dropping out of bidding only to reemerge at the last minute. Bidding can be more of a chess match than you imagine, and we have seen things get way out of hand with two dogs fighting over the automotive Milk-Bone.

Have Fun

Bidding on a car at a car auction should be fun, exciting, and even exhilarating. It is better to be calm and wait for the next opportunity to buy a car than get caught up in the moment and overpay. And do not be frustrated if you are not the high bidder on the car you wanted. Remember, deals are like trains; there is another coming down the track soon.

Do Not Forget There is Always a Deal to be Had at an Auction

If you go searching for one car out of 500 at a big sale, there is a good chance you are going to come home emptyhanded. But if you expand your horizon and go with the type of car you are looking for instead of one car in mind, you have more potential for finding something you can bring home. There are some who claim the best deals happen at the start of the auction or near the end when the audience has dwindled. In the age of Internet bidders, that seems to be less of a factor.

Do not forget you can also bid on the phone. There is at least one well-known dealer who often leaves the room before the car he is looking for comes on the block. He will be bidding at the bar on his mobile phone while enjoying some auction juice of his own, and only he and the auction company knows he is buying.

Finally

You do not have to be the smartest guy in the room to wind up with a great deal on a great car. Sometimes it happens because you are one of just one or a very few people interested in that car. Sometimes it is just better to walk away and wait for the next auction; never say never because opportunities are there for those who are patient.