The auctioneer’s hammer on the automotive public sale promoting block would possibly 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 supplied 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 would possibly quickly be a relic.
Conventional Automotive Auctions
(Picture/Mark Bach)
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 a number of on-site, dwell 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 respiration their final breaths?
The Demise of Automotive Auctions: On-line Competitors
In 2020, COVID brought about many automotive auctions to postpone or cancel their dwell 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.
Nonetheless, extra on-line automotive public sale websites have sprouted up prior to now few years and gained recognition. And a few websites have gotten more and more selective with their listings — these will not be every day drivers that you just would possibly discover on Craigslist. Some websites concentrate on particular manufacturers and marques, whereas others are broader in scope.
Automotive Public sale Developments
(Picture/Convey a Trailer)
Convey 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 Convey a Trailer, Randy Nonnenberg, attributes the positioning’s success to the number of automobiles supplied, typically at an inexpensive value, with “something for everyone.” They’ve bought practically 120,000 autos and automobilia within the final 5 years.
(Picture/Mark Bach)
Hagerty, a traditional automotive insurance coverage firm, notes that for 2024, “the numbers of cars offered online more than doubled that of live auctions.” Plus, in 2024, the precise on-line gross sales quantity surpassed the worth bought by the dwell auctions.
Sarcastically, Hagerty owns Broad Arrow Auctions, which bought over 400 automobiles throughout three dwell auctions in 2024. The agency additionally bought 86 automobiles in “private sales.” Hagerty additionally began its on-line web site Market in 2022, with practically 1,200 listings at the moment accessible.
In 2021, Barrett-Jackson purchased ClassicCars.com and developed a spin-off, AutoHunter.com. Craig Jackson, CEO of Barrett-Jackson, famous, “You’ve got to be in the middle of it.”
(Picture/Mark Bach)
Arizona Public sale Week has been a giant deal for many years and is held in January annually. In 2018, seven public sale firms had been on web site for 20 days of gross sales. In 2025, solely 4 public sale firms could 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 Stay Auctions Are Declining
(Picture/Mark Bach)
1. Commissions
Conventional public sale homes cost the profitable bidder an extra price, referred to as a purchaser’s premium. That is typically about 10% of the profitable bid.
Just lately, many public sale homes have raised their purchaser’s premium to 12% on the primary $250,000 of a purchase order value after which 10% on any further bid value. Usually, the premium is even greater 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 an extra $10,000+ earlier than taking possession of the automotive.
Most public sale homes additionally deduct a vendor’s price, sometimes 10%, from the sale value. 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 providers in promoting the automobile 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 automobile sale value 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 dwell 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 a couple weekends when dwell public sale gross sales are held.
If a purchaser desires to position a bid at a close-by public sale, they might solely have one yearly public sale to select from. Moreover, a purchaser must wait till that public sale home gives up a automotive they need. So, the chance to purchase from a conventional public sale home is mostly restricted.
On-line automotive public sale gross sales, then again, provide automobiles repeatedly. On any day, 1000’s of automobiles are listed on on-line public sale websites. Sellers would possibly want to attend just a few weeks earlier than their automotive is listed on the market, and most auctions final solely per week. In the meantime, patrons can specify what automobile(s) they search and register to get notified when an internet itemizing matches their choices.
3. Transaction Prices
With an internet public sale, after the positioning collects its charges, the client and vendor work out the ultimate buy course of. The client should contact their state immediately for any associated gross sales tax and registration charges.
As compared, some on-site auctions would possibly take 30 days to pay out the vendor. Nonetheless, most conventional public sale homes will acquire a state gross sales tax until 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 house 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 an internet sale, a vendor has no trailering charges and may reply questions from house. They’re additionally extra available if they should evaluate their recordsdata or upkeep information. Typically, the client is answerable for arranging pickup or transportation after an internet public sale closes.
(Picture/Mark Bach)
There is no such thing as a denying a conventional automotive public sale entails a number of gamers and loads of drama. Attendees will remark in regards to the automotive on the public sale block and urge greater 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 in regards to the automobiles on sale. Convey a Trailer’s Randy Nonnenberg notes that his web site promotes “accessibility” to automotive auctions and attracts a youthful, prosperous viewers.
The web group may be very educated in regards to the automobiles 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 evaluate.
(Picture/Convey a Trailer by way of 911R)
Most on-line websites mandate many footage exhibiting the automotive and any current defects. Some websites show over 200 detailed images 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 is just not even on-site, and potential patrons depend on some obscure description within the catalog and a quick visible inspection on-site.
Automotive Auctions: The On-line Future
To reveal the breadth of on-line auto auctions, listed here are some automobiles that had been efficiently bought just lately:
(Picture/Mark Bach)
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 internet is bringing many people in” to the collector automotive area.
However, will an internet presence assist enhance curiosity within the collector automotive marketplace for these conventional public sale homes? Which public sale homes can survive the shift and keep out there whereas growing a robust on-line presence? Large online-only automotive public sale websites like Convey a Trailer, Automobiles & Bids, and Accumulating Automobiles have already got a giant head begin.