11 Tips for Smart Buying at Monterey and Beyond

1) Know before you go.

If you see the car of your dreams in an auction brochure, follow the advice of Ronald Reagan—trust, but verify. Call the auction company a few weeks out and then follow up a few days prior to the auction to confirm that the car is still coming. They can’t guarantee that each car will be there in all cases, but many times they can see if the car was cancelled, replaced with another, or is already on site. Nothing can be more frustrating than being “stood up,” whether for a date or a date to buy a car.

2) Never, ever bid on a car that you have not spent some time with before it appears on the auction block.

That shiny red paint seen from 150 feet away could hide all kinds of sins, including rust, missing parts, bad chrome, an incorrect motor, or, in one case I saw, a completely missing interior. Even if you are a total neophyte, there are things you can tell about any car just by spending five minutes poking around. That leads directly to our next item….

3) When you look at the car, trust your instincts, but be ready to listen to others.

If you stand by the car of your choice, one of a few things is likely to happen. The first and most likely scenario—you will be visited by an expert. Experts come in all shapes and sizes, and include those who clearly do not know what the hell they are talking about. The chances are good, however, that you will be able to glean some information from them and get an honest assessment from a few others. If you are lucky, the owner will appear. Ask questions, and listen closely to the answers. Why is he or she selling? How long have they owned the car? Is the mileage correct? How many owners? Will that bad smell ever go away? It says recent $55,000 frame-off restoration; where are the bills and, better yet, photos of the restoration? Did you feel like counting your fingers after you shook the owner’s hand?

4) When and how to bid is a matter of personal preference.

I usually prefer to be an active bidder, making my interest known early. By letting your intentions be known, you can avoid being passed by in favor of others, or in some cases, a potted plant or a chandelier. At times, however, I’ve been a “drop-in” bidder, joining the action at a point where I’m still bidding at a comfortable level. I was recently able to buy a car on one bid, scoring a reasonable price by making my bid when the price got to what I thought was attractive but not unreasonable, and not being trumped by another potential owner. It does happen.

5) You are not the smartest person in the room, in most cases.

Ask yourself this simple question when you are about to be the new owner: Why is no one else bidding? If you have some inside information, have followed the market closely, or just plain want that car, OK. If not, why are 500 presumably intelligent people sitting on their hands?

6) Don’t let the reserve influence your bidding.

In a no-reserve auction, that’s pretty obvious, but in an auction with a reserve, you should bid your amount even if you know that the reserve is set higher. Why? It’s in the auction company’s best interest to sell every car they can, and they will do their best to get the car sold. This includes “grinding” on the owner and getting him to drop his reserve. It also can include the auction company cutting their fees to make a few dollars less to avoid losing the deal. Being the last man standing puts you in the best position to own the car if the seller relents.

7) Don’t go around the auction company to make your deal.

They have spent thousands, and in many cases hundreds of thousands, of dollars to put on a show, advertise it, pitch a tent, or rent a hall and gather you and thousands of others there. Don’t try to cut the auction company out of their share. They deserve it for putting the two of you together, and they can provide some help in case of title problems (or payment problems) that won’t be there if you do it on your own. Further, if they find out you are a curbstoner (and trust me, they will find out), you will find yourself most unwelcome as either a seller or a buyer at future events.

8) The auctioneer is likely a great guy, but he is not your best friend.

You are sharing the stage with a guy who holds most of the cards. He has the microphone, and he is doing what he is trained to do, so he is clearly in control. Don’t fall in love with his words, or buy a car so that he will like you. He won’t hate you for not buying a car, no matter what he says. And guess what—he’ll just turn around and try to sell you the next one.

9) Set a limit, and stick to it.

Figure out what you want to pay by reading a few price guides (starting, of course, with the SCM Pocket Price Guide) and talking to some industry experts. Remember that in a rapidly appreciating market such as the one we are currently in, price guides can get out of date fast. If a special car is worth a huge premium to you because it reminds you of your first date, or has a similar emotional valence, and you can afford it, then go ahead and raise your paddle. Just be aware that the further outside the current market values you get, the harder it will be to get your money back, let alone turn a profit. In the immortal words of Monterey Auction founder Rick Cole, “You can only buy too soon, you can’t pay too much.”

10) Buy the best example you can afford, unless you own a restoration shop with time on its hands.

With nice cars, the rule of thumb is, “spend more to get more.” The best examples, in addition to bringing more money, are easier to sell when you have had your fun and want to move on.

11) It’s OK to just say no.

Alright, that came from Nancy Reagan, but like the advice from Ronnie, it’s worth noting. Remember, auction deals are like trains. There’s another one coming any minute.