Russo and Steele auction

[Charley Lillard]

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In the case where the house shill bids and "wins" the car a)why don't they have to buy it like anyone else who has a winning bid? b)if they don't buy the car after screwing up the seller's auction who pays for the seller transporting the car to and from the auction and all the associated costs?
I would be uber-pissed if I spent my time and money getting my car to an auction and the hammer dropped and the damn car showed back up at my house like a bad exgirlfriend!

It apprears from these related thread I am not the only one shocked at sanctioned shill bidding. I always figured some guys would have their buddies in the crowd to CYA, but I didn't know the house had a gog in the fight.Does Mecum shill their own auctions too?

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Like it or not the auction house was trying to get bids for the car. Yes it screwed up when it dropped the gavel on it's own employee but the car apparently wasn't going to sell at what the owner wanted anyway since there was no real money at his price. The auction house does all it can to attract buyers. Problems like this seem to happen as car values fall and everyone is still clinging to the idea of what they thought their should be worth but maybe isn't.

[YENKO DEUCE REGISTRY]

""The auction house does all it can to attract buyers.""

Shill bidding up to the reserve is a difficult way to 'attract' buyers IMHO, it sounds like it's a way to attract higher prices - which brings more cars. I realize this is a circular discussion, but for many folks who are auction observers this shill bidding clause in the contracts is new info.

The next generation of auction participants may very well just choose to sell their stuff privately, and avoid the auction process.

[Rick H]

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More butter please.

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[Stuart Adams]

Sure seems like alot of work and time and stress to transport your car, be there to converse with potential bidders, and then all anxiety of is the car going to sell for what YOU think it will. The price you think it's worth is ALWAYS more than what John Q public does, because they have no emotional ties to the car.

And then sit there and if it does not sell, which is common from the numbers I see, your drained worn out and now have to transport home and regroup.

Why is BJ the only no reserve auction house?

[redbaron]

All the auction houses do more harm than good for our sport. How many times have you heard the phase "Well at B-J this or that sold for this much, but in the real world your car really isn't worth that much"? So this creates false markets and values. And guess who wins. The auction houses. They take 8 to 10% from the buyer and seller for a total of 16 to 20%.

[TDW]

Do they shill bid on the lesser value cars? Say the 30-50K ones? The ones the average Joe would be interested in.

[redbaron]

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Do they shill bid on the lesser value cars? Say the 30-50K ones? The ones the average Joe would be interested in.

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Of course they do. Here is how it works. Shill bidding if less than 2 real bidders. So if the real bidder is close to the reserve, you see the guy on the floor trying to get the seller to lower his or her reserve. If the seller does the car is sold at that bid. Very seldom that the bid increases from there.

[YENKO DEUCE REGISTRY]

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Do they shill bid on the lesser value cars? Say the 30-50K ones? The ones the average Joe would be interested in.

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Of course they do. Here is how it works. Shill bidding if less than 2 real bidders. So if the real bidder is close to the reserve, you see the guy on the floor trying to get the seller to lower his or her reserve. If the seller does the car is sold at that bid. Very seldom that the bid increases from there.

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I think your last statement was proven incorrect by the R&S example that started this whole discussion. I think the seller dropped his reserve at $265k'ish, and the car pulled another $80k or so. I think that was a pretty good run!

[redbaron]

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Do they shill bid on the lesser value cars? Say the 30-50K ones? The ones the average Joe would be interested in.

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Of course they do. Here is how it works. Shill bidding if less than 2 real bidders. So if the real bidder is close to the reserve, you see the guy on the floor trying to get the seller to lower his or her reserve. If the seller does the car is sold at that bid. Very seldom that the bid increases from there.

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I think your last statement was proven incorrect by the R&S example that started this whole discussion. I think the seller dropped his reserve at $265k'ish, and the car pulled another $80k or so. I think that was a pretty good run!

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Rarely does that happen. Watch the film footage or pay close attention at the next reserve auction you attend. You will see that this is normal business procedure. Don't think games are not played at the No Reserve auction also.

[ANDY M]

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Howard, thanks for the info. I too do not see why Texas Musclecars felt this was the best course of action. They bought the car fair and square. Yes. is was "a steal", but how many of us would love to stumble into such a deal? And how many of us would void the deal if in their shoes? Before they started posting this crap, I was on their side, not now.

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WTF
If the car was stolen fair and square, and since it would not appear that anyone posting here had said anything negative about Texas Muscle Cars, Rick, please tell us why have you got your knickers in a knot.
It's the auction house's way of doing business being dicussed here, not Texas Muscle Cars' way of doing business.
This sounds like the time when the judge asked my lawyer if the defense had any objections to the charges being dropped.