How does a mecum auction work?

[68BabyBlue]

I went to Kissimee. I also got pre approved for bidding up to $100k. i had lunatic dreams of buying a new 300C from a flipper when they were hard to find last year. Enjoyed the Mopars and had fun. Also spent about $100 to get in, have a bite, a few beers. Didn’t even get a T Shirt. Heard some horror stories from sellers. Rich mans game from this perspective. To do again I’d wait til one came available. Still paid too much for an out of State car and had hell to pay at DMV. Morale: don’t get involved in the frenzy/emotion. Never pays off unless funds are unlimited.

I was there with Dennis. He was kind enough to transport me and my wife from our hotel, traffic in that area was horrible. I had planned on selling my '68 Hemi GTX there, had already made hotel and travel arrangements. Instead, I sold the car to a fellow FBBO member. We both agreed we didn't want Mecum to get a piece of the action. Win win. I saved transport, entry, and sellers fees, he saved buyers fee. I didn't bother with bidding approval for Mecum, because the car that replaced the Hemi was the last one for me, period.

After looking at some of the B bodies that went for big bucks, I was suprised at the number of flaws I found. Nice cars, but my last three were nicer, and cost a whole lot less than auction prices.

 

[Michael_]

Well that helps a lot, thanks.
Also thanks for highlighting their tricks/scams.

Some more questions:

Can you only inspect the cars on auction day or already a day, week etc. prior?

They have bidders assistants stationed throughout the bidder seating area, you get one of their attentions when a car you want to bid on is hitting the stage, and they will work with you and actually signal your bids to the auctioneer.

Can i spontaneously decide that i want to bid on a car or do i have to decide/inform them before it crosses the auction block?
Do i have to inform them at all or can i just walk into the bidders area and start bidding?

I’m not sure how one sets up for having money ready to go for a possibly 6 figure purchase. You have 24 hours to pay after winning I believe, so figure that part out before going there.

Since i'm not from the united states, i will contact mecum about this and a few other things.

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So after reading all comments i think these auctions are mainly fun as a visitor and not necessarily as a bidder or seller.
That being said, i have been browsing through the results section on mecums website (which prices i have been told DO include buyers premium) and my first impression was you can find everything from good deals to fair prices to overpriced cars. This is of course judging by photos only.

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Make sure you drink plenty of alcohol before you go in and preferably have an "escort" with you who you are trying to impress with your wealth and carefree attitude to things.

This sounds like a good plan.
I will start by asking the hotel's casino staff "where to find sluts"

 

[XS22J8R]

I am not sure if the auctioneer can really see individuals among the hundreds in the bidder seating area trying to bid, or even if the bidder can follow the action close enough to follow what is going on with the pricing. It's really fast paced and noisy there. But the bidders assistants, who are Mecum employees and stationed in the bidder area, know how to follow the action and are constantly looking around at the people in the bidding area while cars are on the stage getting auctioned, and when they see someone raise their hand, they run over to them and ask if they want to bid, then let them know what the bid is and what they need to bid to be the highest bidder, and if they bid and then someone bids higher, ask if they want to beat the last bid.
The bidders assistants are there to help bidders get their bids in.
If its a high profile car and bidding gets heated enough, Frank Mecum will run off the stage into the bidding area and try to convince a bidder to bid higher even.
It's all a big show.
But sometimes a good deal can be had. Especially on cars that run earlier in the auction. But getting a deal on higher end cars on Friday and Saturday, which are the prime days of the auctions is tough, and if someone does get a car then for what seems cheap, it is probably a car with issues.

 

[SlingLow]

@Michael the cars are typically staged prior to, and are available for inspection throughout the auction, so you might have multiple days on the cars auctioned towards the end. You can bid anytime with the credentials supplied when you register without the need to notify anyone on any particular auction. I have no advice or info on escorts. If you're in the front row, your bid will be noticed.

 

[GetX'd]

Not car auctions - but auctions for other things. I’m older now and more mellow, less impulsive, but also more $$ secure. With the auctions I went to - both times I got caught up in the frenzy and in one, paid too much for something I wanted but could have lived w/o. In the other I actually had the winning bid on something and very quickly had buyers remorse realizing I didn’t really want what I just bought. My exs father went w/me to an auction and bought a boat. Right after he secured the winning bid I could tell he also had gotten caught up in the emotions and suddenly wasn’t all that happy he was a boat owner. He looks at me and says “you’re going to help me pay for this”. My immediate unspoken thought was - “What are you smoking - I didn't just buy a boat, you did”. I never coughed up a dime - and later on I gave him his daughter back too……


My point is an emphasis on keeping your emotions tucked away as best you can. Auctions create a certain kind of fast action that can be fun to be in - but that fast paced “fun” can also cause you to do foolish things that with a little more discernment time you often wouldn’t have done. So if you fly over the pond to buy, keep all this in mind.

And since it’s in Vegas - also remember that eye candy someone suggested you have on your arm - you’re going to overpay for that too, unless you get the five & dime kind that live in the shadows out there. In that case keep that German wiener in your pants so as not to catch anything you also don’t want……

 

[Don selleck]

I've sold a few at indy and have one there this year, it starts friday may 10th thru the following saturday they want your car there the wednesday before the auction starts so arrive first or second day and you can look at pretty much all of them. I like going its kinda like a big car show, The auctioneer is ok for about 20 minutes then I usually leave.

 

[Pistol Pete]

Though deals my be rare, they do exist. A friend of mine bought this car locally to flip at Kissimmee. It went up on a Tuesday afternoon, right after we lobbed some cruise missiles at some Middle Eastern sand box, which damped the mood a bit (according to him). It was a very clean car that I would have bought prior to him, but I wanted a/c and it had none. He paid $22500 for the car and lost his *** on it. Shouldn't have, but he did.

1970 Dodge Challenger at Kissimmee 2020 as G131 - Mecum Auctions

 

[Ron H]

Though deals my be rare, they do exist. A friend of mine bought this car locally to flip at Kissimmee. It went up on a Tuesday afternoon, right after we lobbed some cruise missiles at some Middle Eastern sand box, which damped the mood a bit (according to him). It was a very clean car that I would have bought prior to him, but I wanted a/c and it had none. He paid $22500 for the car and lost his *** on it. Shouldn't have, but he did.

1970 Dodge Challenger at Kissimmee 2020 as G131 - Mecum Auctions

Looks nice and even though the six, it is well-equipped. How did he lose on the deal? Seems this car would easily go appreciably higher.

 

[Budnicks]

Some of the cars the owner is around & will talk with you
share history
A lot of the cars are flippers,
sold several time over at several different auctions too
seen it 1st hand...

Go early, for cheaper cars/less expensive for the most part
need a bit of work or cleaning up etc.
& the early in the week, the Tuesday Wednesday Thursday cars are
mostly cheaper, a few hi-$$$ (or higher than the wholesale types) cars
thrown in the mix too
for the most part, are cleaned up 'drivers' quality
or some wholesaled cars/local moving inventory
or minor/lil' flaws, worn paint, out of date wheels etc.
Seems the early 2010-ish give or take 5 years either dircectio
run of the mill, decent, pampered BMWs/Mercedese go cheap/er 'used cars'
for 10-20% of their org. purchase price, can get some deals
(local dealers wholesaled cars trade-ins etc., liquidated)
resto-mod especially Broncos short bed 50sto later 80s Trucks
short-bed 4x4 are crazy now,
usually high dollar restos & Muscle cars not so much, not cheap,
they bring what the 100% full on OE resto use-to bring
or more now
IMHFO you can get a way better deal outside the auction "usually"
muscle cars go with the crowd, market trends, resto-mods are going crazy
value wise
or auction prices go with/as the shills in the crowd go
or "alleged" multiple phone bidders, people get caught up in the moment
liquored/greased up & they are there to buy,
get in a pissing contest with other bidders, who's is bigger
or egged on by the auctioneer, ploys

It is an auction beware, caveat emptor (buyer beware)

The Friday & Saturday cars
usually go for more $$, not always, but mostly, rare good deals on the Fri/Sat cars
IIRC (I haven't been for a while)
Mecum has a no-reserve car fees/price, is 8% + taxes & license for the buyer
'unless they strike a better deal with you'
you smoosh with the Frank or his kid/son bi fat bald dude runs the show now
& the reserve cars are 12% (IIRC) & both parties pay it on top of the auction price,
the % on "a reserve" or "no reserve" auction fees, on the sale
buyers pay taxes & license fees appl. to the state...

Barrett Jackson was 10% + appr. state taxes & license fees (last time I went)
"no reserve for both parties"
10%+ with a reserve, both parties pay the fees,
the auction house makes it both ways
but it is very few reserve cars, at BJ, usually multi Million $$ cars

 

[Pistol Pete]

Looks nice and even though the six, it is well-equipped. How did he lose on the deal? Seems this car would easily go appreciably higher.

The car sold for $15,950. I saw it in person before he bought it and could not fathom why such a low bid took it home.

 

[71RRHI]

It's also been alleged that Mecum sometimes short hammers cars where they think the seller set the reserve too low, so they can buy it. Then they put it in later auctions trying to sell for a nice profit. .

Maybe an example of what XS22J8R said

 

[gtx6970]

Viewing cars before hand is real easy. sometimes sellers are near, sometimes not .
Im not afraid to open the hood or doors on a car I have an interest in. I am not buying on external look overs by any chance

if the seller is near the car, by all means ask. I cant imagine they would tell you no. If they will not open it up. You dont want that car anyway. Move on

I crawled all over and under a 67 Hemi GTX vert at Mecum last month for a friend of mine. While I was there, a representive of the seller stopped in . We talked for a bit and I asked him to open the trunk. He allowed me to pull the mat back so I could see the trunk floor. Nice guy. More than helpful. He even asked me what I thought of the reserve,,, which he told me was $175k.
I told him if he got any offer over 135k , they should consider selling. As the car needed quite a bit of work anyone just with a casual glance was not going to pick up on, IMO


It sold for $148k.

 

[Ron H]

After restoring 3 vehicles, acquired an appreciation for what’s done and otherwise. This would get into what decisions are made during the nitty-gritty process for one reason or another, to do it right, not so much, or not at all. Always some things encountered I didn’t expect…more time, more cash. Deal with it and do it right, or not. Restoring my ’63, everything had to be just right or it would have bugged the chit out of me. Didn’t matter if it would be ‘hidden’ as so much is. Quite different when doing my ’05 Dakota as it is my daily driver and the idea was to make it look all pretty again. It looks pretty, new-like, lots of compliments; but work I could have done on it, that I didn’t.

This is what I think about if I’d be buying a ride for big bucks. Done right or not so much? Obviously, lots one cannot see even with a trained eye. DRIVING it would be real important to me if I was plunking down 30, 40 + grand.

Guy I met at a car show having a gorgeous ’64 Sport Fury, he had just purchased, isn’t a mechanical sort, but having money, bought himself a turn-key ride. In the trunk was a great photo-album of this car’s restoration, hundreds of photos. THIS car I wouldn’t have had a problem buying, viewing everything done on it. I did the same restoring my ’63, must have 300 pics having the phone with me throughout the process in my garage and at the body shop. The owner’s wife also handed me a thumb drive with a hundred or more pic’s. If I sell it one day, anyone will see my ride’s resto in great detail, no guessing on what was done. But, I did this for my own history. As it is, this would be vital to me if I would be buying a restored vehicle as a turn-key.

 

[68BabyBlue]

This is what I think about if I’d be buying a ride for big bucks. Done right or not so much? Obviously, lots one cannot see even with a trained eye. DRIVING it would be real important to me if I was plunking down 30, 40 + grand.

This is why I've never considered buying at auction. I've never been interested in a OEM concours restored piece. As Ron says, a good recording of the restoration process can verify an awful lot as to quality and scope of what was performed. It gets a lot dicier with the next level down. I've mentioned my former A33 doing well on the auction circuit. Extremely photogenic car, right colors, excellent drive line. But a lot of metal replacement, shakes and rattles on a test drive. Since I sold it, the car covered less than one mile, while being bought and sold four times.

Current GTX had extensive work done as well, no restoration book documenting it. But I already knew the history, just had to verify that what I already knew about hadn't deteriorated or been altered. Test drive verified what my inspection already indicated. I also got all the parts that were removed from the car. That won't happen at an auction. Like many things, word of mouth may well lead to a better deal for both parties, especially if the car in question is good, but not perfect.

 

[kiwigtx]

Mecum Auctions = Me come, Me pay, Me poor.

 

[Stereolab42]

You'll often find cars at these auctions that never come up for sale privately or at dealers. You are paying for good bodywork and paint since that is what you can see (along with documentation like numbers, tag, sheet, VIN, and so on -- if that stuff is claimed but hidden or misrepresented, run away). Those are the most expensive things to get right on a car, as we all know. Expect that mechanically it will be a disaster and will take months to get running correctly, typically with a 5-figure bill. These are always older restorations that haven't been driven much in ages. With these expectations in mind, bid accordingly and you can do fine if you're not a dumbass.

 

[68BabyBlue]

You'll often find cars at these auctions that never come up for sale privately or at dealers. You are paying for good bodywork and paint since that is what you can see (along with documentation like numbers, tag, sheet, VIN, and so on -- if that stuff is claimed but hidden or misrepresented, run away). Those are the most expensive things to get right on a car, as we all know. Expect that mechanically it will be a disaster and will take months to get running correctly, typically with a 5-figure bill. These are always older restorations that haven't been driven much in ages. With these expectations in mind, bid accordingly and you can do fine if you're not a dumbass.

Saw a great example recently, a '69 GTX convertible with similar colors to my '69 hard top. Nice older restoration, numbers matching, heavily optioned factory four speed. Bid to 40K, no sale. A dealer ended up getting it, and sold it for 79K after running a Hemmings ad for two days. Would have been a nice deal for an auction buyer.

My last two GTXs were held by private owners for three decades each, and both were in superb mechanical condition, in addition to excellent body and paint, numbers matching, and excellent documentation, specimens that typically don't show up with dealers or private listings. They both changed hands in word of mouth deals. As a buyer, word of mouth can beat the auction deal, as I found with those two. Selling is a different story. I have instructions in my estate plan for my wife to sell my current car at auction if I predecease her. With no connections in the hobby, the odds of her getting the peak market price in a private sale are slim to none.

 

[Michael_]

Well when i first found out about the auction in las vegas this sounded like a great idea.
I love las vegas. So going there for vacation and also attending a large mecum auction seemed like a no brainer.

But after digging deeper i'm not so sure anymore.
In addition to what you guys said:

I talked to mecum and they told me i have to put down 20% of the max. amount i plan on bidding. (With cash or bankwire)
(This is because im from germany, you guys would have to put down nothing or only 5k if you plan to bid more than 50k.)
I'm sure it would be fun getting this money back in case i do not buy anything.

Also October seems to be one (if not THE) most expensive months for las vegas.

At this point i think it would most likely be smarter to fly to vegas at a cheaper time and maybe couple it with attending a Pomona Swap Meet.
Because then i could truly make spontaneus / pressure free decisions.

 

[Richard Cranium]

I have instructions in my estate plan for my wife to sell my current car at auction if I predecease her.

You should tell her to advertise it here so someone here can have first dibs. Also, let us know before you croak so we can be aware that it’s going to be available soon.

 

[XS22J8R]

My late father had a very valuable gun collection along with a lot of valuable accruements including manuals, books, cartridges and more. He kept an inventory of his collection with values. He specified an auction house he trusted and made it clear he felt a collector gun auction house closer by was not trustworthy to dispose of his collection after he passed. Also he noted a trusted friend to use to help sort out his collection, and to give first dibs to buying anything he wanted. Also a dealer who he trusted to deal with the accruements.
He got cancer and passed quickly, and disposing of his large collection shortly after he passed away went quickly and well.
That is a good template for any hobbyist to use for their collections to make sure they do not become burdensome on their families, and that their survivors don't get taken advantage of and ripped off after they die.
One thing we did have trouble with was his big gun safe. He had told my mom he put the combination in a place that would be easy to find if he died. Well it wasn't, and we ended up having to hire a safecracker to get into the safe. The combo turned up months later while sorting through his vast amount of paperwork.