Re: Russo and Steele auction
Drew had also sent me text but it came in a form I couldn't open till now. Here is his text.
Wow, this is starting to be a full time job… As I have said before, I have been at this a LONG time. Following 5 years as the GM at Barrett-Jackson and now 8 years at the helm of Russo and Steele, there is simply a complaint, story, dispute, or crying or whining, pissing and moaning I have not heard.
My track record and reputation in this hobby and the passion and integrity with which Russo and Steele operates is evidenced by the many strong relationships we maintain with our clients and the success we have enjoyed. In all the years I have been doing this, having consummated thousands of transactions, I have only ever had ONE go to court. Actually, this was back with B-J and we prevailed.
As quick-bowtie, Mr. Distad has posted. We have been able to reach an amicable agreement and keep the most valuable thing there is in this hobby, a relationship. Cars don’t talk, have feelings, or care. Enthusiasts do. And as one, so do I.
If I may be so bold, let me state that first and foremost, I am an enthusiast. At the risk of sounding pretentious, I was very fortunate to have “paid my bills” long ago. I do Russo and Steele because we truly love the hobby. Very few, if any of my contemporaries can say the same… Yes, it is wonderful to have a company that can sustain its self and pay the bills “playing with old cars” but let me be abundantly clear; I do this because I love the cars, but more importantly, I enjoy the relationships I have with many fellow enthusiasts. I love my collection of cars. I vintage race in club events, exhibit my cars when I can to share with others, and hell, I even parked my Boss 429 in the living room! (yes, Josephine is pretty cool) Suffice it to say, I am an enthusiast and collector as well.
BOTH of these ‘new issues’ 1) Jeff Yergovich of R+A Motorsports and 2) Chris Burns from Santa Barbra Car Company are as a result of consignors failing to read, understand and fulfill THEIR obligations when selling THEIR car at auction. Both are “cut and dried”. Both are subject to the contract that ALL auction company’s have and is basically “boiler plate” language.
The 1970 Blue Boss 429, of Mr. Burns simply did NOT meet the Reserve price. By law (and some other auction companies practices of No Reserve were the reason for these laws) the auction house has to divulge to its sellers the following:
Advancement of Bidding: RS retains the right to advance the bidding up to, but not in excess of, the Reserve, as agent for the Seller. RS further reserves the right, at its sole discretion, to Sell the Vehicle at a high bid price less than that price identified as the “Reserve Price,” provided that RS nets the Seller the specified reserve amount less all-applicable sales commissions and fees.
This clause is clearly stated in Russo and Steele’s Consignment Agreement under section 8, d.
Simply put, the Boss did not sell, as the Reserve was $300,000.
Nothing is worse than “working to get the reserve for a seller” only to have him “pull your shorts down” as he lifts his reserve on the block at $245,000 – for $65K less! This occurred in this instance when the above contract clause was being utilized on BEHALF of the seller in an attempt to get the seller what he said he wanted. If indeed he was wiling to take a substantial amount less, than there is only two reasons why he “shot high” on the reserve; 1) to “make us work harder” to sell the car. Anyone who has been to my auction knows this is impossible to do, since my gang works the hardest of any on the planet. 2) to have a high reserve to allow the seller to “grind” a negotiation on the block for less than the stated 10% reserve. In all my years of doing this, these are the ONLY two reasons, all others are delusions.
As for the 1968 Shelby GT500KR Fastback of Mr. Yergovich, this one is even simpler. He consigned the car with a $100,000 Reserve. It is these contracts that my staff has on the auction block. We sold the car for (coincidentally) 100 grand, met his reserve and paid him the net. If Mr. Yergovich made a mistake on his paperwork, this is not my fault. To go jumping around on my auction block saying you want more in the brief time the car is on an auction block, with the “bullets flying” and thinking you are going to then verbally raise your reserve at this chaotic moment is simply ludicrous.
I have sent a PDF of both Consignment Agreements along with this text. If they can be posted, that would be nice, since there leaves no questions.
Lets move on guys. When there are hundreds of thousands of dollars in motion, my most sincere suggestion to all fellow enthusiasts is to know your responsibilities and obligations.
Similar to when a Cop pulls you over for doing 105 mph on the freeway, the excuse of “I did not know” will not get you out of the ticket.
As I have run out of cheese and crackers, this will be my last post, I just do not have any left or the “whine”.
Drew Alcazar
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