How Often are Auctions a Bargain and How Often are They a Scam?

**BillyT** · 04-06-2006, 11:40 PM

Ebay?

Cars Auctions?

Valuable Artwork?

Real Estate?

The Stock Market?

Is dating really a big auction too?

Teach me, all you great financial know-it-alls!

**Modulistic** · 04-07-2006, 05:09 AM

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BIGRED Z · 04-07-2006, 08:06 PM

In my experience, car auctions are a great value. An in law runs a used car lot, he's just small town, relies on repeat business so he has to be honest and buys all his cars at auction. I just picked up a Saab 1999 95 from him 90K mi, turbo V6 books at 10K+ for $7,900. (Traded in the truck for $2900 so I paid 5K for it.) He was a mechanic for many years and knows what he's buying to, that helps. I'm sure you can get ripped if you don't know what you're doing.

Ebay: Has just as many crooks as honest sellers, so it's important for the buyer to be educated about his purchase. Just takes a bit of research, no more than you'd have to do anyway if buying your item from a retailer. (I'm a bargain shopper and I shop around before making any purchase.) I've always done very well on Ebay, and the 1-2 problem sellers I've encountered were easily fixed with making a claim through paypal.

Stockmarket: You had better know just as much about your money and where it's going as the broker, because in the long run, no one has as much a vested interest in your money as you. The broker will watch it for you, watch it grow or watch it disappear, either way, he has his commission.

Artwork...don't know much about it.

Real estate: There's a ton of money to be made in it, but I don't know how. I dabble a bit here in there in tax lein purchases, but nothing major.

Dating: Ah hell Billy, you're a confirmed bachelor...so go with what you know.

Lori

**BOWTIE 3** · 04-08-2006, 10:03 AM

I was a car-buyer for a large dealership in Va. for about 10 years; traveled all over the eastern seaboard. Generally, any auction that is open to the public is where the dealers take all of their junk. This is because at public auctions there is no arbitration between seller and buyer. These are the auctions they take the vehicles that are such a piece of crap that they can't/won't offer the buyer a warranty. At dealer-only auctions the buyer has an hour to check the vehicle over and drive it to determine if there are any major problems. If there ARE any problems then the purchasing dealer can either go to the arbitration office and negotiate a better price [ to cover the agreed-on repairs ] or decline the vehicle completely. At a public auction you are usually SCREWED! Public auctions usually have the interested buyer put up $200-$500 in advance as a registration fee. When you are the highest bidder and then walk out to the vehicle and discover that the vehicle won't move [ transmission gone ] or the engine knocks YOU HAVE NO RECOURSE! The sale is AS IS! If you decline to take posession of the vehicle the auction keeps the registration fee. I used to really wonder where these idiots who pay to much for junk come from. You're usually better off buying from a reputable dealer that offers some kind of warranty. I know, I said " reputable ". They're out there. They're usually new car dealers that have a reputation at stake. If you're interested in a cheap older car/truck then go around to the new car dealers and check their back lots. Thats where they keep the cars/trucks they're going to wholesale or take to the auctions.

**91Z28** · 04-08-2006, 12:57 PM

Originally Posted by Modulistic

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**INMY01TA** · 04-08-2006, 03:56 PM

My mom got a $7,000 Rolex watch at a police auction for a few dollars. The cops thought it was fake and had it in a bag with some other costume jewelry. She also got a very heavy 24kt. gold bracelet at another. She buys all the cheap jewelry they have at em and looks at it all afterwards.

**BillyT** · 04-08-2006, 04:24 PM

Originally Posted by BOWTIE 3

I was a car-buyer for a large dealership in Va. for about 10 years; traveled all over the eastern seaboard. Generally, any auction that is open to the public is where the dealers take all of their junk. This is because at public auctions there is no arbitration between seller and buyer. These are the auctions they take the vehicles that are such a piece of crap that they can't/won't offer the buyer a warranty. At dealer-only auctions the buyer has an hour to check the vehicle over and drive it to determine if there are any major problems. If there ARE any problems then the purchasing dealer can either go to the arbitration office and negotiate a better price [ to cover the agreed-on repairs ] or decline the vehicle completely. At a public auction you are usually SCREWED! Public auctions usually have the interested buyer put up $200-$500 in advance as a registration fee. When you are the highest bidder and then walk out to the vehicle and discover that the vehicle won't move [ transmission gone ] or the engine knocks YOU HAVE NO RECOURSE! The sale is AS IS! If you decline to take posession of the vehicle the auction keeps the registration fee. I used to really wonder where these idiots who pay to much for junk come from. You're usually better off buying from a reputable dealer that offers some kind of warranty. I know, I said " reputable ". They're out there. They're usually new car dealers that have a reputation at stake. If you're interested in a cheap older car/truck then go around to the new car dealers and check their back lots. Thats where they keep the cars/trucks they're going to wholesale or take to the auctions.

I THOUGHT SO!