To Consider Before Selling at Auction

I’ve been talking recently with a private seller who sold his car at the end of last year. The car was an 0606 plate Honda Civic 1.4 5 door, with 10k miles on the clock. Glass’s Guide trade-in value for the car back in November was £7,190 in average condition. A local franchised dealer offered £7,000 as a part exchange.

Despite a private sale estimate of almost £8,000, the seller chose not to part exchange or sell privately, but to send to auction instead.

A few weeks later, the car had not sold. The auctioneer advised the seller to accept a private bid of £5,500. The seller says the auctioneer then advised that it was generally accepted that the auction price normally finished £1000-£1500 behind the trade in price, and that leaving the car until after Christmas to try to get a higher price was a bad idea.

The seller decided to follow the auctioneer’s advice but subsequently regretted his decision. He reported the matter to the Retail Motor Industry Federation and the case went to the RMIF’s National Conciliation Service for dispute resolution. Once the dust had settled, the seller emailed us to discuss his experience.

As a long-time trade observer with one foot in the consumer camp, it always slightly upsets me when I see privately owned and entered cars coming in to an auction hall. For whatever reason, this seller has decided not to take a dealer part exchange offer and not to sell privately. This is always a decision that will cost them money, and I don’t much like decisions that cost people money.

Auction sale can be a quick and efficient means of selling a vehicle. In certain scenarios (bereavement, emigration etc), it is often the perfect solution, but selling a car in a non-specific general sale will always bring a lower return than selling the car online or in the local paper. Hands-off disposal comes at a price, as our Honda owner discovered.

Specific auction events, such as classic car, caravan or motorbike sales, can often bring very good results, as an audience has assembled that is specifically interested in what you are selling. But a general sale is just that: lots of cars in lots of conditions from lots of different sellers.

What you have to offer will quickly enter a pecking order, with the cleanest cars at the top of the trade’s ‘most wanted’ list, and rougher examples on a sliding scale below. A limited audience will be present, and prices for cars in lesser condition will be penalised for the time and money it will take dealers to get it up to retail standard. If you decide to go the auction route and want the best return, present your car in immaculate condition.

I’ve said it many times before: I enjoy car auctions. I like the drama and the banter, the selection of cars available and the competition involved in buying. But I also like holding on to as much of my hard-earned cash as possible.

If you’re a private seller who believes they can get a better result in a quick-fire auction sale, rather than via the local paper, or one of the online classified sites, think again. I wouldn’t say “it will never happen”, but the odds are stacked against you.