Any person interested in classic cars would have heard about the high dollar auctions where the most elite, rare and valuable automobiles are sold. Auction houses like Barrett Jackson, Mecum, Bonham’s and Sotheby’s have these exclusive auctions at places like Monterey, California and Scottsdale, Arizona. But these aren’t the only auctions held; there are hundreds of auctions held all around the country. Auction companies promote the sale of a large number of cars every year with each of them having their own set of rules and guidelines to help them go about their business.
The collector car business has much more in common with the stock market than the regular everyday business of buying and selling cars. Based on the current trends, some cars rise the scale in value whereas some plummet on a downhill scale. As big money demands a spectacle, auctions are being advertised on television to reach their maximum potential. Car collectors follow and keep up with these car auctions quite intently as there are millions of dollars involved in the car auction business. Many magazines and websites are devoted to this business of keeping up with the rise and fall of car prices.
This is how a car auction typically works. You have the seller who owns a classic, exotic or interesting car and who wants to sell it. Obviously, they want big bucks for the car, and they hence sell it to the buyer who will put out the money to buy it. The buyers, on the other hand, are looking to get a good deal out of the whole process, but they are ready to part with big money to get the car they want. At a car auction, the key is competition as buyers bid and compete in a high-stakes, fast-paced environment. The car is on the auctioneer’s block for all of a minute, so the buyer has to be quick if he wants the car. If the buyer wins the bidding process, he gets to drive away in the car that he bid for.