The auctioneer’s hammer on the automotive public sale promoting block may quickly be used to hammer nails within the coffin of conventional “tent” automotive auctions. Certain, Mecum Auctions posted over $275 million in gross sales at its 2024 Kissimmee, Fla., public sale from over 4,300 autos provided on the market. Final yr, Barrett-Jackson’s first fall public sale in Scottsdale, Ariz., even posted over $200 million in gross sales. Regardless of these numbers, conventional automotive auctions underneath a tent may quickly be a relic.
Conventional Automobile Auctions
Public sale homes have been round for ages and often public sale extra than simply autos, although our focus right here is on their automotive auctions particularly. Most public sale firms host just a few on-site, stay auctions scattered throughout the nation yearly.
Barrett-Jackson held three auctions in 2024 and can quickly kick off its season in Arizona, with roughly 1,900 autos crossing the public sale block. Mecum will host 10 auctions within the U.S. this yr and kick off its 2025 gross sales in Kissimmee.
So, why precisely do I believe in-person automotive auctions are dinosaurs respiratory their final breaths?
The Demise of Automobile Auctions: On-line Competitors
In 2020, COVID induced many automotive auctions to postpone or cancel their stay auctions. Some firms reverted to on-line gross sales with some success, and the crowds and patrons have began to flock again to the auctions.
Nevertheless, extra on-line automotive public sale websites have sprouted up previously few years and gained reputation. And a few websites have gotten more and more selective with their listings — these are usually not each day drivers that you just may discover on Craigslist. Some websites deal with particular manufacturers and marques, whereas others are broader in scope.
Automobile Public sale Developments
Deliver a Trailer, for instance, was profitable in 2024, with over 30,000+ autos exchanging fingers. On a typical day, practically 700 autos and automobilia are up for grabs.
The co-founder of Deliver a Trailer, Randy Nonnenberg, attributes the positioning’s success to the number of vehicles provided, usually at an affordable worth, with “one thing for everybody.” They’ve bought practically 120,000 autos and automobilia within the final 5 years.
Hagerty, a traditional automotive insurance coverage firm, notes that for 2024, “the numbers of vehicles provided on-line greater than doubled that of stay auctions.” Plus, in 2024, the precise on-line gross sales quantity surpassed the worth bought by the stay auctions.
Sarcastically, Hagerty owns Broad Arrow Auctions, which bought over 400 vehicles throughout three stay auctions in 2024. The agency additionally bought 86 vehicles in “non-public gross sales.” Hagerty additionally began its on-line website Market in 2022, with practically 1,200 listings at present accessible.
In 2021, Barrett-Jackson purchased ClassicCars.com and developed a spin-off, AutoHunter.com. Craig Jackson, CEO of Barrett-Jackson, famous, “You’ve obtained to be in the midst of it.”
Arizona Public sale Week has been a giant deal for many years and is held in January every year. In 2018, seven public sale firms have been on website for 20 days of gross sales. In 2025, solely 4 public sale firms may have 12 days of auctions. Gooding & Firm — now owned by Christie’s — and Worldwide Auctioneers, which held auctions in Arizona final yr, bowed out from this yr’s choices.
5 Causes Reside Auctions Are Declining
1. Commissions
Conventional public sale homes cost the profitable bidder a further price, generally known as a purchaser’s premium. That is typically about 10% of the profitable bid.
Lately, many public sale homes have raised their purchaser’s premium to 12% on the primary $250,000 of a purchase order worth after which 10% on any further bid worth. Usually, the premium is even larger for abroad gross sales or automobilia. So, if a automotive bought for $100,000, the client must pay a price to the public sale home of a further $10,000+ earlier than taking possession of the automotive.
Most public sale homes additionally deduct a vendor’s price, sometimes 10%, from the sale worth. So, if the automotive bought for $100,000, the vendor would solely obtain $90,000.
Within the instance above, the public sale home would obtain about $20,000+ for its companies in promoting the car for $100,000.
By comparability, most on-line public sale websites cost a single flat price to the vendor, sometimes $0-250, with 100% of the car sale worth going to the vendor. On-line public sale websites sometimes cost 4.5-7.2% of the profitable bid to the client and cap this purchaser price at round $4,500-7,500.
The web public sale price construction presents a way more monetarily pleasant program than conventional stay auctions for each patrons and sellers, particularly on high-value autos.
2. Timing
Whereas auctions are held practically year-round, sellers who need to work with one public sale home are restricted to some weekends when stay public sale gross sales are held.
If a purchaser needs to put a bid at a close-by public sale, they might solely have one yearly public sale to select from. Moreover, a purchaser should wait till that public sale home affords up a automotive they need. So, the chance to purchase from a standard public sale home is mostly restricted.
On-line automotive public sale gross sales, then again, supply vehicles repeatedly. On any day, 1000’s of vehicles are listed on on-line public sale websites. Sellers may want to attend only some weeks earlier than their automotive is listed on the market, and most auctions final solely per week. In the meantime, patrons can specify what car(s) they search and register to get notified when a web based itemizing matches their choices.
3. Transaction Prices
With a web based public sale, after the positioning collects its charges, the client and vendor work out the ultimate buy course of. The customer should contact their state straight for any associated gross sales tax and registration charges.
Compared, some on-site auctions may take 30 days to pay out the vendor. Nevertheless, most conventional public sale homes will accumulate a state gross sales tax except the client is a licensed automotive supplier or proves the automotive is leaving the state the place the sale was made. These out-of-state transports are nonetheless typically reported to the client’s residence state income division.
4. Transportation & Journey Prices
For in-person auctions, sellers should pay to move their autos to the positioning. These prices can simply exceed $2,500. If the vendor decides to attend the public sale to reply questions and promote their automotive, they may incur further journey prices.
With a web based sale, a vendor has no trailering charges and may reply questions from residence. They’re additionally extra available if they should assessment their information or upkeep information. Typically, the client is liable for arranging pickup or transportation after a web based public sale closes.
There isn’t any denying a standard automotive public sale entails plenty of gamers and loads of drama. Attendees will remark concerning the automotive on the public sale block and urge larger bids. Seeing two rivals elevating their bids for a automotive is thrilling — and costly.
Most on-line automotive public sale websites permit members to go online, make feedback, or ask questions concerning the vehicles on sale. Deliver a Trailer’s Randy Nonnenberg notes that his website promotes “accessibility” to automotive auctions and attracts a youthful, prosperous viewers.
The web neighborhood could be very educated concerning the vehicles and may level out discrepancies within the automotive’s description or ask particular questions. All of those feedback can be found for all to see and assessment.
Most on-line websites mandate many photos displaying the automotive and any current defects. Some websites show over 200 detailed pictures for shut inspection. Movies of a chilly begin and a cruise within the neighborhood are the brand new expectations on these websites. At some conventional auctions, the vendor/proprietor will not be even on-site, and potential patrons depend on some imprecise description within the catalog and a quick visible inspection on-site.
Automobile Auctions: The On-line Future
To reveal the breadth of on-line auto auctions, listed here are some vehicles that have been efficiently bought lately:
Most conventional public sale homes are beginning on-line websites to complement their dwindling on-site auctions. Barrett-Jackson’s Craig Jackson acknowledged that “the web is bringing many individuals in” to the collector automotive area.
However, will a web based presence assist improve curiosity within the collector automotive marketplace for these conventional public sale homes? Which public sale homes can survive the shift and keep available in the market whereas creating a robust on-line presence? Massive online-only automotive public sale websites like Deliver a Trailer, Automobiles & Bids, and Accumulating Automobiles have already got a giant head begin.
