Buying at Auction

[wildweels]

So many people who go to an auction to buy some thing usualy finish up paying much more than it is worth. For example some years ago Pickles auctioned of 80 military trailers custom built for Landcruisers,they were new but had sat in the Townsville army base for about 4 or 5 years.At the auction there were about 30 buyers I said to my son we will just sit and watch for a while .When the auction started a few buyers started bidding around $1400 after about 30 trailers had been sold the price had settled down to about $800 so we bought 2 trailers 1 for me 1 for my son. I have been to other auctions where 2 brothers have been bidding against eachother

[Mick_Marsh]

What it's worth, in your opinion, may not be what it's worth to someone else.
If the bid (plus fees and charges) is more than you are prepared to pay, don't bid.
Simples!
Interestingly, the value of those trailers to a scrap metal dealer is probably around $100 so you paid way more that it's worth to someone else.

[Lotz-A-Landies]

One of the problems with sitting back at an auction is the issue of buyers option. When buyers option is operating at an auction, the winning bid on the first lot has the option to buy the rest of the lots (of the same item) at the price of the final/winning bid on the first lot.

Many traders work this way because they know they will put a margin on their purchase costs and they have often cornered the market so everyone has to buy the items off them.

[Mick_Marsh]

One of the problems with sitting back at an auction is the issue of buyers option. When buyers option is operating at an auction, the winning bid on the first lot has the option to buy the rest of the lots (of the same item) at the price of the final/winning bid on the first lot.

Many traders work this way because they know they will put a margin on their purchase costs and they have often cornered the market so everyone has to buy the items off them.
Does the buyers option apply to the Frontline auctions through Grays?

[Bigbjorn]

The usual procedure at live auctions where a lot or lots consist of a number of identical or similar items is for the auctioneer to state the bidding is "per each". The successful bidder is asked how many they want and if he doesn't take the lot then the audience is asked if anyone wants any at that price. The auctioneer may then offer the balance to the bidders at what price he can get. sometimes more, sometimes less, or he may say that if anyone is interested in the remainder see a staff member after the auction.

[Lotz-A-Landies]

Not the way that the Bandiana auctions used to go, I wanted to buy a unimog jack there were pallets of them. The first winner, nodded to the auctioneer and took the lot.

I've seen it with tyres and canvas tent sections as well.

Then there are the times when they break for lunch just as you're approaching a desired lot, the auctioneer says the auction will re-commence at 1pm sharp. You return at 12.45pm to find that the auction recommenced with one bidder at 12.30pm and the lot you wanted has gone. :mad:

[wildweels]

that is right when buying a unimog jack someone could buy one with the option and take the lot. But it would have been a bit expensive to have bought 80 trailers at $1400

[Bigbjorn]

Not the way that the Bandiana auctions used to go, I wanted to buy a unimog jack there were pallets of them. The first winner, nodded to the auctioneer and took the lot.

I've seen it with tyres and canvas tent sections as well.

Then there are the times when they break for lunch just as you're approaching a desired lot, the auctioneer says the auction will re-commence at 1pm sharp. You return at 12.45pm to find that the auction recommenced with one bidder at 12.30pm and the lot you wanted has gone. :mad:

At many auctions private buyers have to compete against dealers who will buy large quantities. What you could have done was approach the successful bidder and ask to buy one.

Dealers (like me) commonly resent private buyers who are generally prepared to pay more for single lots than dealers. Private buyers dislike dealers because they take whole lots, or will drive up the bidding if they really want a lot and price the private buyers out. As a dealer I never went to weekend auctions because these drew all the wood ducks who would pay and pay not knowing values.

[wildweels]

Not the way that the Bandiana auctions used to go, I wanted to buy a unimog jack there were pallets of them. The first winner, nodded to the auctioneer and took the lot.

I've seen it with tyres and canvas tent sections as well.

Then there are the times when they break for lunch just as you're approaching a desired lot, the auctioneer says the auction will re-commence at 1pm sharp. You return at 12.45pm to find that the auction recommenced with one bidder at 12.30pm and the lot you wanted has gone. :mad:
Ah yes bandianna I had a lot of dun buying stuff there.! In 1970 went to to the Tottenham ovt auctions and regularly attended there.I bought many of landys there bidding against Charlie ****** and ULR both dealers of second hand landys.Once catching the overnight train to adelaide and bidding against Norm Beechy Trucks and I bought a real nice ex police landy with 4 fuel tanks was from Maree police station

[Cobber]

it would have been a bit expensive to have bought 80 trailers at $1400true, but there's people out there with money to throw around, and if they'll make a chunk of profit ...

[V8Ian]

Years ago a mate wanted to buy a motorbike at a BCC auction. I had a mate, who worked in the BCC garage, check the histories. One bike had a complete engine rebuild prior to auction, so was the desired lot. It was second of four offered. The first didn't attract a bid and my mate thought all his Christmases had come at once as he was the only bidder interested in a bike. Lot two was offered and two other bidders drove the price higher than a brand new, later model. The losing bidder bought the third bike and my mate got the last one, unopposed, for the opening bid......less than half of lot two.
His bike served him well for many years travelling from Bald Hills to Rocklea and return every work day.

[Mick_Marsh]

Here you are wildwheels, this one seems reasonably priced:
1989 Land Rover 110 Perentie (http://www.carsales.com.au/all-cars/Dealer/details.aspx?R=agc-ad-16134837&ctocode=1574627163-53669&WT.z_csource=Criteo&WT.seg_4=Criteo)
No bidders to bid against. No buyers premium.

[crash]

My ony advice at buying at auction is know your prices, and stick to your allocated budget.
Emotion gets in the way of common sense sometimes.
At an auction a last year and I opened the bidding on an ex military vehicle which required ALOT of work to restore. It ended up going for a price higher than you could buy a restored one. Then I found out it was the nephew of the deceased owner who bought it - he had a huge emotional atttachment to it!
Once at a clearing sale I was bidding on something and I happened to look over to see I was bidding against my dad - I dropped out and let dad buy it - I still ended up with it in the end.

[DeeJay]

Ah yes bandianna I had a lot of dun buying stuff there.! In 1970 went to to the Tottenham ovt auctions and regularly attended there.I bought many of landys there bidding against Charlie ****** and ULR both dealers of second hand landys.Once catching the overnight train to adelaide and bidding against Norm Beechy Trucks and I bought a real nice ex police landy with 4 fuel tanks was from Maree police station

There was also "mad dog" McCrostie :p

[Basil135]

One of the problems with sitting back at an auction is the issue of buyers option. When buyers option is operating at an auction, the winning bid on the first lot has the option to buy the rest of the lots (of the same item) at the price of the final/winning bid on the first lot.

Many traders work this way because they know they will put a margin on their purchase costs and they have often cornered the market so everyone has to buy the items off them.

We did exactly this when we were buying timber flooring.

Won the first lot, and was ready to bit on the next few when we were asked how many we wanted at the same price.

The price we were paying was way below what we had expected to, so took another pack. Still left 3 behind thou. Kicking myself now. :mad:

Then I had to sand, and lay 65 sq meters of Australian Beech flooring... :D