A friend recently sold his 2000 Ferrari 360 Modena. In classic red over black, with 31k miles, it was a driver, but it had the desirable gated 6-speed manual. The CARFAX was clean and a recent belt and fluid service meant it was ready to use. This was his third try selling the car at online auction. The car was bid to $97k on Bring a Trailer the first time around last spring, but he was hoping for more. Subsequently he listed the car on Cars & Bids, where bidding reached $91k, again failing to meet reserve. After he’d spent a couple […]
A friend recently sold his 2000 Ferrari 360 Modena. In classic red over black, with 31k miles, it was a driver, but it had the desirable gated 6-speed manual. The CARFAX was clean and a recent belt and fluid service meant it was ready to use.
This was his third try selling the car at online auction. The car was bid to $97k on Bring a Trailer the first time around last spring, but he was hoping for more. Subsequently he listed the car on Cars & Bids, where bidding reached $91k, again failing to meet reserve.
After he’d spent a couple thousand more to correct minor cosmetic imperfections and install new brake pads, the Ferrari went back to BaT. This time he let it go for an $89k high bid, $8k less than the first time around.
I think we’ve learned that if you’re selling online, your initial high bid is going to be your best.
No to no reserve
My friend was nervous about listing the car at no reserve. I advised him that what I do is set a reasonable reserve and then lift it during the last few minutes of the auction if the bidding is close. (By the way, BaT won’t take your car if you don’t agree to what they suggest is an achievable reserve.) In this case, you also get to play at being an auctioneer, posting, “The reserve has been lifted, and this will be the next car sold!” in the comments.
Here, when the bidding hit $87k, I asked him if he really wanted to go through this process again. I also reminded him it would be months before BaT would list the car again, and this time it would have to be at no reserve. The trendline was not moving in his favor.
He agreed, pulled his reserve, and the Ferrari sold. His only comment after the auction was how many “I’m really interested in your car” commentors vanished in the last two hours of the auction. The buyer is flying in this week to drive the car home.
While some post-auction commenters thought this Ferrari sold “cheap” or was “stolen,” the BaT market speaks with authority. Meanwhile, my friend spent more money and time to get a lesser result.
What’s next?
All is not lost. The next fantasy car on his list, following the Ferrari 512BB, Porsche 930, Lotus Esprit and Citroën SM that have already been in his garage, is either an Austin-Healey 100 or a 3000 Mk III BJ8. I have owned a BJ7 (and loved the vinyl dash) and drove a 100 across the Andes, in a snowstorm, on the Argentine Mille. While the Big Healey is a more sophisticated car, the 100 is much more engaging to drive, with its immense grunt as it pulls in low gear from its 3-speed box.
I was sitting in the broadcast booth at Barrett-Jackson some years ago when the first Kurt Tanner-restored Big Healey sold for over $100k. That kind of price and more came to be expected every year.
But they are now selling at half-price from their peak, so my friend conceivably might be able to buy one of each with his proceeds from the Ferrari sale. Many of the Healeys on offer are extremely well done. There are just more of them out there than there are buyers.
Navigating the market
There are a few things to reflect on as we continue to watch the online-auction world evolve.
The number of dealers who are now using BaT to buy and sell should reassure a consignor that a no-reserve car will not fall into an abyss. If your car is well presented, chances are it will make at least a wholesale price.
I’m just going to mention here that saying things like “The A/C doesn’t blow cold, but it just needs a recharge” makes me run for the hills. It’s generally around $1,500 to properly service an A/C system, and you should just spend the money. You stand a good chance of getting it back on the sale. It’s the same with “driver’s side power window not working.” If a seller can’t be bothered to fix that kind of thing, I can only imagine what else needs to be done.
For sellers, do what is necessary to make it a one-way trip across the virtual auction block, just like you would at an in-person auction. In general, your car will not bring more as a frequent flyer, as has always been the case.
Whether you’re buying or selling, be aware of where the market is soft and adjust your expectations accordingly. While Healeys have dropped 50%, Ferrari 308 GT4s have doubled in price.
Just as you do your homework when you prep and present your car, do the same in reverse when buying. Be very, very, very picky as you read the descriptions of the cars. I get fatigued looking at 300 pictures, so I depend more on what is written, both in the description and in the comments.
If anything scares you (like DIY replacement of rockers and floorpans on an Alfa Duetto), cross that example off your list and move on. The next compelling car is as near as tomorrow morning’s listings.