The marketplace
Uncertainty in the auction market and prices have been the catalyst for a rise of tech-based online auctions and bidding platforms.
One such site is Collecting Cars, whose founder Edward Lovett believes it was overdue. “the market has long felt in need of a shake-up,” he says. “Prices had come down significantly from the peak, around 30% in some cases, but asking prices were not reflecting that. Buyers, sellers, and even some dealers are unsure what certain cars are worth and there was a palpable lack of momentum in the market, so the prospect of a new platform that could inject some energy and sell cars swiftly received a great response.”
The low cost and effort of submitting a lot for an online auction has also helped: “It’s not a new idea — we’ve had ebay for more than 20 years. Collecting Cars delivers a more curated experience for buyers and a more specialised, secure platform for sellers.”
ebay has proved both positive and negative according to Tim Joslyn of The Market, which developed from car-history site Patina. “ebay is a bit of a Wild West,” he says, “but it has made people familiar with the format. The user behaviour’s there.”
But there are drawbacks to being online and both admit there are elements where they can’t compete.
“We can’t replicate the plush auctions of Essen, say, where you’ve plied everyone with Champagne, and people want to do the oneupmanship,” continues Joslyn. “But that only really matters to a small subset of cars. When it’s more run of the mill, even £500,000 or £1million, you’re relying on reach.”
Lovett agrees: “You could certainly argue that nothing beats the fervour of a physical auction, with bidders whipped into a frenzy – perhaps with their inhibitions lowered by a few drinks. However, our priority is to make use of as much modern technology as we can to help change the way people buy and sell collectable cars.”
The increase in traffic suggests buyers’ confidence is growing, and that’s thanks in no small part to each site’s more dynamic approach. The Market is built by a digital agency first, car enthusiasts second, while Collecting Cars has embraced online media with a rapidly popular podcast featuring co-founder Chris Harris. That digital innovation is where “bricksand-mortar businesses”, as Josyln puts it, could be left behind.
Lovett adds that: “Buyers have found Collecting Cars through social media, and viewed and bid on a car entirely through mobile or tablet devices. That’s a totally alien concept to traditional auction houses. They are dipping their toes in the water but they’re not really trying anything new. Perhaps that’s not surprising – the nature of online-only sales arguably calls into question the value of their substantial commissions.
“Some ask that bidders gather online at a particular date and time and watch an auctioneer on a virtual rostrum, which seems to negate almost all the flexibility that online-only auctions can provide. For others, the only nod to modern technology is the ability to bid online during a sale. That feels like a missed opportunity to me.”
Read more at classicandsportscar.com
You meet one as-factory ’80s BMW (p220) and then another comes along. Jonathan Aucott of Avantgarde Classics has a timewarp 728i – but it’s been in stock for five years because he doesn’t want to sell it to anybody who would actually use it.
“With just 7400 miles from new in 1980, and still on its original Michelins, it deserves better than that,” he says. “It’s waiting for the right owner who might perhaps use it for a couple of club outings a year rather than lots of miles. I’ve had a couple of offers, one was from someone who wanted to put air-con in it and use it daily. I’ve had the brake calipers rebuilt and if I have to run it occasionally to keep it in good health I’ll source another set of wheels and tyres to preserve the originals.”
The E23 is priced at £25,000 and viewable near Tamworth. See www.avantgardeclassics.co.uk