► No-reserve auction buys are on the rise. Bargains ahoy?
► Car enthusiasts, not investors, are causing market growth
► Buyers are getting more used to buying online
► For all latest auction calendar, visit Classic Cars for Sale
An auction house that specialises in online-only sales has been upping its monthly sales totals throughout the COVID-19 outbreak – and says that no-reserve deals are becoming an increasingly important part of the classic market.
The Market recorded its best-ever month in July, with sales totalling £1.26m and 77 out of 91 cars selling – that’s an 85% sales rate. It said that it was enthusiasts – as opposed to investors – who were driving most of the deals and that the increase in no-reserve deals reflected a confidence in the market’s buoyancy.
The prices of cars sold show that buyers are more accustomed to bidding online, particularly if they have had the opportunity to view a car before pressing the ‘bid’ button.
A Condition 1 1973 Jaguar E-type roadster achieved the highest July price at £75,000 (against an £85,000-90,000 estimate) while a rare pre-production 1985 Ford Sierra RS Cosworth in Condition 1 sold for £52,500 against a £39,000-59,000 estimate.
Following on from both Bonhams and Historics earlier in the year, The Market offered a Condition 1+ Trident Clipper that sold for £32,500, a touch behind its £33,000 lower estimate. A 1980 MGB LE, which sold for £12,286 (above),. and a supercharged 1958 Morris Minor £10,552, showing that there are those in the classic scene who want more than absolutely standard specification.
No-reserve auctions driven by rising buyer confidence
The Market’s administration manager, Ainsley Pierce, said: ‘We’ve seen a slight increase in the number of no-reserve auctions which we offer. This has been driven by increased confidence from sellers in our process and the fact that they have seen consistently strong results from other no-reserve auctions. In fact, such is the success that we now have a dedicated day for no-reserve auctions.
‘Regardless of the whether a given car is valued at £10,000 or £200,000, we would always advise that a no-reserve auction will create a much bigger buzz and will therefore achieve a genuine market value, so we don’t see a ceiling price on no-reserve auctions.’
Classic Car Weekly’s markets editor, Richard Barnett, said: ‘This year has seen a continued growth in no-reserve offerings and not only for cars at the cheaper end of the market; an increasing number of higher-value classics are also coming to auction in this way. It’s clear that some vendors might still be rather skeptical about no-reserves but there are clearly benefits for the seller.’
Classic Car Weekly is the UK’s biggest-selling weekly classic car publication. It’s at the heart of the classic car scene, packed with cars for sale, news, reviews, nostalgia and advice.