It’s very easy to get sucked into the excitement of an online car auction. This can lead to being misguided by psychological traps as the auction draws to a close or stuck with expensive vehicle repairs after the auction closes. To make sure you end up on the right side of an internet vehicle transaction, it’s best to have a plan.
I asked Phillip Griot, Founder and CEO of Griot’s Motors, what buyers and sellers should do to optimize their online vehicle auction experience. Griot is a second-generation car industry professional, with his father founding Griot’s Garage, a top vehicle detailing products company — and a lot more.
He has not only grown up restoring and modifying his father’s impressive vehicle collection, but he has also created one of the most respected and professionally run full-service automotive storage, restoration, and sales facilities in the Pacific Northwest.
With Griot’s Motors being a full-service shop with sales focused on Bring a Trailer auction listings, and having sold millions in cars online, Phillip is the perfect person to guide us through the best practices for buying and selling vehicles through online auctions.
I even visited the Griot’s Motors facility first-hand to get a full evaluation on my 1990 Lancia Delta Integrale HF 16V, see the company’s professionalism first-hand, and check out the impressive Tacoma, Wash., facilities. I left very impressed, and wishing they were closer to my home, to help me sort out my modified classic Italian hatchback.
Here are Phillip Griot’s top five tips for buying and selling vehicles online.
Top 5 Tips for Buying Vehicles Through Online Auctions
1. Research Is Key
- Is the auction listing consistent with published information on the vehicle?
- What are common faults with the model?
- What are major service milestones? Have they been completed?
- What future maintenance/repairs need to be performed?
2. Get Eyes on the Vehicle
- Always commission a pre-purchase inspection (PPI) or go see the car yourself, when possible. People can and often will omit photos that may damage or lessen the value of their vehicle. Sellers can also alter, filter, or light photos to make a car appear better than it is. A lot of enthusiasm can be quickly dashed by laying your naked eyes on a car. Don’t wait until after you paid for it!
- In the worst-case scenario, get on the phone with the seller and talk through your questions. I find that more trust can be won, or lost, over the phone than messaging online.
3. Know the Market & Your Budget
- Study the market and set a budget.
- Factor shipping costs, auction fees, outstanding repairs, and maintenance into your budget, as well as a +10% cost contingency for rectifying any unforeseen issues.
4. Ask Questions
- Ask lots of questions!
- Some people forget, don’t know, or don’t think about certain items when inquiring about a vehicle’s condition.
- Good questions to ask:
- Does the radio work?
- Does A/C blow cold?
- Does the vehicle battery maintain a charge?
- Are there any creaks or rattles I should be aware of?
- Is there any rust, corrosion, or leaks?
- Do you have service records for the vehicle?
- When was the last time the vehicle was serviced?
- What is the age of the tires on the vehicle?
- Ask these questions, as there is always an associated cost for the end buyer, and in some cases, it can be very steep!
- The comments section on auction sites like Bring a Trailer can be a great resource!
5. Know When to Fold ‘Em!
- Don’t let emotions drive an unsound financial decision.
- If an auction exceeds your budget, or if your research or questions uncover any potential issues that would exceed your +10% cost contingency, be prepared to walk away.
- Popular auction sites, such as Bring a Trailer, offer between 800 and 900 auctions per week. There are exceptions, but another example of what you’re trying to buy will likely come to market soon.
Top 5 Tips for Selling Vehicles Through Online Auctions
1. Take Lots of High-Quality Photos & Video
- Sell with honesty, integrity, and confidence, and the market will take care of you.
- Disclose the imperfections. People know they’re buying a used vehicle. I guarantee if you disclose the imperfections, people will hold your car in higher regard.
- Your objective should be removing seeds of doubt or obstacles to potential bidders by adding a level of trust.
- Take photos as if you were walking around and inspecting the car, and provide photos that would help answer any potential buyer questions.
- Does your listing protect you from a buyer coming back for money?
- Disclosing/documenting any issues in the listing makes it much more difficult for remorseful buyers to demand a refund
- Reliable auction platforms, like Bring a Trailer, also provide dedicated account support for all transactions should anything go awry
2. Address Issues Prior to Listing
- Think like an attorney when considering the value of your vehicle: “What is the argument against receiving top dollar for my car?”
- Act like a doctor when determining what services are necessary for achieving top dollar for your vehicle: “Triage the highest value improvements to your vehicle that make economic sense.”
- Disclose the rest in the auction listing.
3. Know What Your Vehicle Is Worth
- As with buying, do your market research. Know the common faults and major maintenance milestones of your vehicle to discuss with potential buyers when they ask questions.
- Be realistic about the value of your vehicle, or you are bound to be surprised.
4. Establish Buyer Confidence
- Establishing buyer confidence is your primary goal!
- High-quality pictures and video, detailed service records, and a realistic understanding of the value of your vehicle will all help instill buyer confidence when listing your vehicle with an online auction.
- A buyer’s confidence in your vehicle will always result in higher bids.
5. Be an Active Seller
- Once your vehicle is listed for sale online, do not ignore the auction!
- Be active in the comments section, particularly when addressing potential buyer questions.
- Nothing incites the auction/internet trolls more than being combative or ignored in the comments section.
- When dealing with probing questions, whether negative or truly curious, provide a positive and prompt response. This will often quell 95% of the doubt.
- “I don’t know; let me go find out,” works wonders. Silence, on the other hand, will kill your auction.
Online Auction Top Tips: Conclusions
There are trends throughout Griot’s tips for success at online vehicle auctions, both for buying and selling. Here are the basics, which you should always keep in mind:
- Vehicle presentation is key to success. Be sure to create great media that highlight the car if selling. If buying, be sure to look past the shiny images and great exhaust note in the videos and notice the details within the media.
- Knowledge is power. Know your stuff — value, common issues, what’s been modified from original, etc. If you don’t know, research and ask.
- Build confidence with the other parties involved in the sale. Confidence creates trust and value.
- And lastly, don’t hesitate to walk away from the auction listing. It isn’t the last place you have to sell your vehicle and is likely not the last place to buy the vehicle you want.
Mr.choppers)
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