Car auctions are a favourite with enthusiasts from all walks of life, especially those that take place online. Are you interested in the concept but have trouble understanding what it really involves? Find all the essential information in the following paragraphs.
- 1 Auction: definition
- 2 How does an online car auction site work ?
- 3 Who can sell a lot on an online car auction site ?
- 4 How much does it cost to sell my car on an online car auction site ?
- 5 Can my lot be rejected from an online car auction site ?
- 6 What are reserve prices and how do they work ?
- 7 How long does the car auction of a lot last ?
The term refers to a sale open to the general public, consisting of presenting valuable or even rare lots to enthusiasts. The initial price is increased in increments set beforehand as participants in the auction bid. At the end of the auction, the person who makes the highest bid becomes the owner of the lot by paying the agreed price and the applicable fees.
In other words, it is a public sale to the highest bidder and contrary to some preconceived ideas, the concept allows for some very good deals.
How does an online car auction site work ?
As the name suggests, car auctions are limited to the sale of vehicles to the highest bidder. The term “lot” can refer to a single vehicle or to several vehicles that are the subject of the same sale announcement.
In the case of an online car auction, such as on the official website Le Bolide, the platform acts as an intermediary between sellers and buyers.
Sellers fill in a form and send photos of the vehicle to the platform, which prepares the ad and puts it online. The car for sale remains with the seller throughout the process. Sellers pay a flat fee to the platform.
Buyers must also register to take part in online car auctions. They have the choice of bidding a specific amount by following the live auction or setting a maximum amount that will be managed by the site’s system through automatic bidding. At the end of the auction, the buyer who acquires the lot pays a premium equivalent to a certain percentage of the purchase price to the platform.
The auction site puts the seller and the buyer in touch with each other so that the parties can agree on the settlement of the lot and organise the collection of the vehicle.
Who can sell a lot on an online car auction site ?
Any person aged 18 or over can register on the platform. This registration commits them to providing complete, up-to-date and accurate personal information. The registered information can be modified at any time via the user account created on the car auction site.
In order to sell a lot, it is imperative that the lot is owned by the seller who must certify that he/she is legally entitled to sell his/her property. In the event that you are submitting a lot on behalf of a third party (individual, company, organisation, etc.), it is imperative that you have the required authorisation to sell the lot on their behalf.
After registration, you will have a user account associated with a pseudonym. It is this nickname that will be used each time you publish a comment. It is indeed possible to interact with the members of the site to give details about a lot or simply to share knowledge.
There are no geographical limits. Whether you live in Europe or on another continent, you can submit a lot on a platform specialising in car auctions. This is one of the main advantages of this method of selling.
How much does it cost to sell my car on an online car auction site ?
As mentioned above, all sellers pay a flat fee. It costs €99 to have your lot put up for sale online. This sum is non-refundable even if the lot is unsold at the end of the auction.
The flat fee covers the drafting of the advertisement and all communications relating to the sale of your lot. It is more a form of remuneration received by the team that handles the listing and the follow-up of the auctions than a commission deducted from any profits you may make from the procedure.
Can my lot be rejected from an online car auction site ?
It is important to know that auction platforms set their own standards. As a general rule, the lot must be interesting to the buyers. For this reason, the vehicles concerned are subject to a complete photographic report beforehand.
Experts evaluate your lot from all angles to determine whether it corresponds to the site’s charter and send you a price estimate. This assessment also allows the platform team to determine whether the lot has any prospects of finding a buyer.
In addition to the photos, it is necessary for you to fill out a questionnaire that provides more details about the lot. The state of preservation, the history… are all determining elements because the lot must be out of the ordinary to attract enthusiasts and make them want to bid.
In the event that the lot you offer does not correspond to the site’s charter, the latter reserves the right to refuse to put it online.
What are reserve prices and how do they work ?
The provided by the experts does not determine the auction price. Although it is common for lots to be sold at higher prices, there is also a risk that the best offer will be low. This is why it is useful to set a reserve price, i.e. the price below which the sale will not be concluded.
The reserve price is thus a security for the owner of the lot to be sold. It must be defined with the platform team. In the event that the reserve requested by the seller is too high in relation to market trends, the site may refuse the sale.
It should be noted that the reserve price is always confidential. Potential buyers therefore have no idea of the amount at which the seller is prepared to sell his lot.
In some cases, no reserve price is defined in advance. This means that the lot will be sold to the highest bidder. The absence of a reserve price is then incorporated into the advertisement.
How long does the car auction of a lot last ?
It takes about ten days from the receipt of the photographic report to the posting of the lot online. This delay is explained by the fact that a rigorous expertise is carried out so that the sale is as profitable for the seller as for the future buyer. In addition, the marketing strategy may require a specific approach depending on the characteristics of the lot.
From the moment the advertisement is placed online, the bids remain open for an average period of 48 hours to 2 weeks. In general, the auction of a lot lasts 10 days. In all cases, the closing date of the auction is systematically indicated in the description of the lot to be sold.
Convenient and secure for all parties, the online car auction offers many opportunities for enthusiasts.