Forecasting emotion-based transactions in an auction setting can be extremely challenging. For example, based upon comps, my team and I analyzed and estimated a vehicles’ base value at $140,000 (auction setting). The vehicle was concours-restored and in excellent condition, and was to be auctioned off without a reserve. However, given it was serial #1 of 484 built, it is near impossible to place an additional value on this aspect of its pedigree; as such, we remained steadfast with the base value estimate. Two bidders entered a bidding war, and the car hammered at $325,000, setting a world record for the marque.
Obviously it doesn't always go this well. As a seasoned veteran of flipping cars, I have made and lost money at auction: at times within a matter of hours. The collector car market is ever-changing, tastes can vary, and - at times - the market can be fickle.
In addition, significant time is spent carefully managing expectations of a seller; irrespective of whether the car is being offered with a reserve, or selling "no reserve” at auction. Just because an owner witnessed a vehicle sell for $XXX,XXX doesn’t necessarily mean that their vehicle will come close to this range and that history will repeat itself in the same – or similar setting. Condition, originality, color, and especially pedigree can make a significant impact on value, just as it did in the aforementioned example.
If you’re considering consignment to auction and would like advice in regards to its value, feel free to reach out; I’m happy to provide some industry insight at no cost. Please ensure you provide photos of the interior, exterior, and engine bay, as well as a description, and email to me at: muffy@muffybennett.com
