Re: auction 'buy backs'
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I'm still not quite understanding how this auction buy back works. If you are not allowed to bid on your car as owner, and must have someone else bid, then aren't you on the hook for paying the entire bid amount, not just the 18% seller/buyer portion, but also the bid amount as well? Because if someone else bids (and they must have a bidders number) isn't that considered a legitimate buy? I'm still fuzzy on how this all pans out. Thanks for any clarification to this.
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You're basically floating a check. If you "buy back" my car for me and win it at $110k, we've already worked it out so I loan you the $$ and you write a check to the auction co. for the $110k. In about 4 weeks a check comes in the mail for $90k ($100k sales price minus 10% commission). Net loss: $20k.
And by the way, buy backs have been going on forever! It was just extremely obvious this year. Auctions are a real game - if you are cautious and dilligent, there can be some real buys. If not, there's a good chance your paying too much for a questionable car. An illustration: years ago I was talking to the seller of a 67 SS/RS. It looked very nice. No docs. Question: "It's a real car?" Answer: "You'll have to figure that out for yourself" Buzzzzzzzzz. I just did.
Dave
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