Auction prices versus Real World prices?

Is it just me or do people seem to pay more at auctions than they do at other times? I went to an auction this past Sat where they sold a CASE 580 C backhoe. It brought $6,8000 and it was in avg condition. It took me a year to sell mine for $4500 and it was an exceptional machine.

You're right, $68,000 is a LOT of money for a 580....

Glenn

I'd think you meant $6800.00 but someone may have known something about it you didn't,or it MIGHT have not REALLY sold.
It is at least hard,if not impossible to figure an auction.
Figure on being flamed or cussed,but after 40 years at auctions that is my thoughts.

Probably a function of having a lot of buyers in one place. But seems like you could have got $4,500 pretty quickly for a good machine- did you advertise it adequately?

Yes there is some truth to that. I have been guilty of paying more for machinery if is close to home. Not that I want to but something to be said when you spend a lot of time searching for something there comes a time you are better off paying the price to get it over with if it's something you really need and hard to find.

The one on auctions that I can't understand is paying new price for used hand tools.

It is all a function of how well the auctioneer is marketing the auction and bringing in buyers and weather those buyers are dealers or end users. A few years back they closed a ship yard in Sturgeon Bay Wisconsin, the company I worked for went there, we bought a power shear and a 90 ton ironworker for about 30% of what we figured we could get them somewhere else, Milwaukee drills and grinders- we could buy them new at Fleet Farm for less, who can figure? With the auctions I ran for the county It wasn't uncommon to move motor pool units at KBB "retail", two factors our employees knew the cars and would step up and buy an ex county car over something setting on a dealer's lot or in someone's front yard, second the local used car dealers were there and made sure I wasn't selling anything cheaper than what they were into their inventory for. One dealer stepped up a few times and was buying our cars at Kelly Blue Book Private Party price, said with transportation and travel expenses it was still better than buying at a dealer only auction. It was sometimes funny to deal with car buyers, one year I did sealed bids on our surplus motor pool cars. Some guy bid $2,500 on a Focus and included a two page letter about what was wrong with the car and why he wouldn't pay any more than $2,500 and I was ripping someone if I sold it for anymore. A local used car dealer bought it for $4,100 and didn't have it on his lot for 2 days before he sold it.

I think it"s the competition. Some people just don"t like to lose.

(quoted from post at 09:39:32 05/23/12) Is it just me or do people seem to pay more at auctions than they do at other times? I went to an auction this past Sat where they sold a CASE 580 C backhoe. It brought $6,8000 and it was in avg condition. It took me a year to sell mine for $4500 and it was an exceptional machine.

Click to expand...

TYPO-$6800.00

I see the same thing all the time. You can never sell you own stuff for near what auction prices are even if you give your number to the runner up bidder !

I see things like that all the time at auctions. A lot of times it is a case of the person not having a clue as to what something or worth or what it sells for new. Seen things like a Lincoln buzz box sell for half again what one sells for when new because the person has no clue what the going price is for something all they know is they want what ever it is

You also have to factor in Auction Commission which can range from 10-20% THAT money has to be factored in because it is the Mark-up. So take that off and your in the range. A one on one buyer has a definate advantage of not having to make an instant on your feet decision on the purchase. I have sold a lot of equipment for people and they really cringe when I ask for 5%commission.I usually wind up with 3-4 so they don't cry. But they never once whine when they take stuff to the local consignment sale and pay 15% or a NO-SALE fee if reserve is too high.Most these guys are computer illiterate or do not have access. Thats my rant.

The last auction I went to, I heard a man say "If I want something, I don't care what I pay, I get it." Some people have no clue.
Dennis

...unless it is my stuff selling at the auction.

I would like to have a backhoe/loader tractor and have looked at a few Case 580"s, but I think they were higher letter models. I don"t think I have seen any for less than about $10K to $15K, which I find hard to justify in my budget. I would love to find a workable 580 for about 6 or 7K and fairly close to Spokane.

Maybe it is just this area, but the prices you are writing about seem pretty good to me. Where are you?

Yeah - I saw a guy buy a John Deere 14T for $2700 - but it was only worth about $1000 - TOPS.

These consignment auction houses are getting real smooth. Used to pick bids out of the sky, then with a signal, partners would run stuff up, now it is an internet bid bidding against you. They have a way of knowing if Joe wants an item and all of a sudden, ole Joe gets in over his head.

Last Saturday I saw a '52 Case SC (ran good, painted pretty) sell for $3325.
Same auction a beat up '48 Ford 8N with a 9N engine that ran good, old blue paint job, leaking axle seals sold for just over $1300 and a '35 Farmall F12 on rubber (cutoffs) sold for $1150. It ran, had an old red paint job.
Just a couple of prices I remember. All seemed pretty high to me.

I think your's sold a little low. I've seen a lot older machines than a 580C bring $4500. It probably depends on what area in your in.

Actually auctions tell what an item is worth TODAY,not 10 years ago or maybe what someone dreams up is a 'fair price' based on next to no facts or what Uncle Joe paid for a tractor in
far worse or better condition.To get a realistic price take what something bought at 10 different auctions throw out the low and high prices and then average the other 8.