by Michael Satterfield - 05/25/2022
The world of collector car auctions seems to split into two camps, the high-end luxury auto auctions offering only the most exclusive and expensive cars and those made for basic cable with special guest appearances by reality TV stars with standard 66 Mustang coupes selling for $100,000 for some reason. But my experience at local collector car auctions has shown that the big number of cars are more the exception than the rule and I wondered if that translated to the more prestigious auctions as well. So, when RM Sotheby’s invited me to come out to Arizona earlier this year to check out the auction at the Arizona Biltmore, I jumped at the chance to see how the process worked at one of the leading auction houses in the world.
RM Sotheby’s has recently been in the news for selling the most expensive car in the world, a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupé which went for an incredible $142,504,000. But while these types of incredible sales grab headlines, many vehicles sell at RM Sotheby’s auctions for well under $100,000, at the February 2022 auction in Paris, several classic Ferrari’s even crossed the block for under $75,000. While at the March Fort Lauderdale auction one lucky bidder took home a 1922 Ford Model T Speedster for just $11,000. Despite the perception, apparently, you don’t need to be a millionaire to buy a collector car at an RM Sotheby’s auction.
If you are planning to bid at the auction you must register ahead of time either online or in person during the auction preview hours. Registering to bid requires you to provide proof of funds; they also require a $2,000 pre-authorization to be placed on your credit card. For proof of funds, bidders must produce a bank letter of guarantee, bank statements, and proof of current account balances. If you are using a classic car finance company or a line of credit, you will need to contact a Client Liaison to approve your proof of funds. There is also a bidder registration fee, that fee varies depending on the auction.
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So, you have made it through the registration process and now are set on bidding on your dream car? Now what? You have some options, the most common and most exciting is bidding onsite during the auction, but if you can’t attend you can bid by telephone or online. You can also have an absentee bidder who will bid in your place starting at the lowest price and bidding to your maximum price throughout the course of the auction.
For larger auctions the preview period may be up to two-three days, preview days are important if you want to see the vehicle up close before bidding. At the Arizona Biltmore, the preview was hosted in a large secure parking lot that allowed bidders, sellers, and general automotive enthusiasts a chance to enjoy all the cars that would be crossing the block. My favorite car by far was the classic 1959 Devin C which had a rich racing history and was in excellent condition for a street-legal vintage race car. The auction was headlined by a 1955 Mercedes-Benz 300 SL Gullwing that was expected to sell for several million dollars, however, the field was eclectic ranging from a 1932 Ford Model B pickup all the way to a 1967 Citroën DS 21 Décapotable, several modern collector cars were also in the auction including a 2019 Ford GT and a 2015 Porsche 918 Spyder.
But once you have finished looking at the cars, there is little to do other than return to your hotel room and relax until the auction the following evening. This time is used by many in the collector car world to visit the other auctions which are inevitably happening in town as all the major auctions tend to overlap dates taking over whatever city they are visiting for roughly a week.
The auction starts in the evening and the atmosphere is jovial as bidders pour into the main hall and the first lot is pulled onto the stage. A number of automotive personalities are on hand including, Magnus Walker, Wayne Carini, and Matt D'Andria. The crowd comes and goes as the cars they are interested in bidding on or watching are auctioned off. While the Mercedes Gullwing is of interest to a few buyers, the crowd was also interested in seeing what the Cizeta-Moroder V16T will bring as it makes history by being the first collector car to include a custom NFT package. As the night rolls on, most of the cars are coming in or above their pre-auction estimates as the final cars make their way to the stage the crowd has started to thin out.
The next morning the auctioneers are busy tracking down bidders and finalizing sales, as payment is due in full on or before 5:00 PM the following day. The total cost of the car includes the “hammer price” (the price the car sold at auction for), plus a 10% Buyers’ Premium, and any taxes and fees. So be sure to factor those costs into your budget. Once paid, the winning bidder has five days to pick up their purchases and RM Sotheby’s will process the transfer of title for the buyer.
For the buyers, they simply go home and wait for their new dream car to arrive on the back of a truck, but for the team from RM Sotheby’s they are packing up the entire show and moving on to their next auction which could be halfway around the world. It is a very different way of buying a collector car, but it is an experience that I recommend all automotive enthusiasts at least consider.
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