Mecum - Indy MAY 12-20 - STAGE 1 CONVERTIBLE

We all know it's buyer beware out there, but...

Legally, the burden of proof of authenticity is ALWAYS on the seller, not the buyer.

Problem is a buyer can go broke prosecuting a fraudulent seller (and too many buyers don't ask while others are too gullible).

Shame the auction houses aren't simply regulated and held to the same standard as a seller. Just document the proof of the claim.

That way the auction house insurance would pay off the buyer and the auction would then go after the seller.

For the insane percentages that Mecum and the others make, it should be a no brainer...

 

If you take into consideration the amount Mecum spends on promotion of their events and the cars, plus the cost for the venues, generally for two weeks, plus the labor expense for several hundred employees, a 10% sellers fee, or possibly less if negotiated, doesn't seem insane to me at all. The effort and time it would take a seller to achieve "auction prices" by selling a car in their garage makes 10% seem cheap to me.

 

To me, it feels like it should be more of a flat fee. 10% is fine until your car is worth a lot of money and then it's too much IMO.

 

Yeah, but there is a 10 percent buyers premium as well. Essentially they make 20 percent on every car, which is a lot to me.

However, its like you said. If you have a higher end car, places like that are often your best chance at stupid money. Particularly these days. As such people will keep paying it.

 

It like any other business, it is all about the percentage. It probably takes 20 points gross to net single digits.

 

So let's tally - Mecum Glendale March 28 - April 1.

The "sold" amount was approximately $37,197,600.

20% buyer/seller fee = $7,439,520

I don't presume to know their overhead, but that is a chunk of change for a week...

 

Plus they have sponsors/advertising. Plus it costs to attend & I think even more if you want to be able to bid. I think the buyer's prem. is higher too for phone/internet although they'll also discount the seller's fee on the block to make a deal happen if it's close to reserve and I assume the sales # includes the charity auctions. Idk if they'll still discount fees after it's off the block but I suspect so. I think they're entitled to their fees for a period (90 days?) after the auction.

 

The only winner at these car auctions is the Auction House itself. Plus they have their own people buying and selling cars and thats called collusion, some day Mecum or BJ will be indicted for racketeering.