Mecum Auctions: 101

Tips for buying a car at a Mecum Auction

Mecum came to Houston for the first time last April and rolled about 600 cars through in two days.  Since they're returning this year with three full days of auctions I thought I'd pass on a few tidbits of information in case any of my friends were planning on attending.  I suppose these tips could apply to any auction house (Kruse, RM, Barrett-Jackson), but Mecum is the most popular in the country so I'll focus on them. 

Branelle at her first Mecum Auction last year in Houston.

Over the years I have bought and sold - mostly bought - countless cars at auctions.  I think they're a blast!  A number of those purchases were at Dealer Auctions, but they're a different animal and not open to the general public so there's no point in wasting time with them.  Public auctions are fun and exciting, but can be a bit overwhelming if you aren't familiar with the scene.  Nobody in the country sells more vehicles than Dana Mecum.  They put on a fairly friendly show and usually have something of interest for everybody.  Here are a few tips geared towards the average person for making a smart purchase and enjoying the auction experience:

• Come Early - Stay Late

The best deals are almost always either at the beginning of the day or at the very end.  There are a couple of logical reasons for this.  One, there are usually a lot less people around to bid, especially late in the day.  A lot of people have spent their $$ already or have simply worn down and gone home before the last hour or so of a day's run.  Branelle and I spent 14 hours at the auction last year on Friday, but we basically stole a great little car in the last hour for our efforts.  The second reason that early and late work better for deals is that Mecum will stack higher dollar cars in the middle of each day and sort of just "stick" cars from people they don't know very well around that middle block.

We came home with this great little Jensen-Healey last year.  It was very well bought because it was at the end of a long day and no one really knew what it was.

• Be Camera Shy

This is sort of like the last tip.  Virtually every Mecum Auction is televised nationally for anywhere from 4 to 10 hours a day.  They usually only have cars going through with a minimum value of $25,000 during the televised portion.  A lot of dealers and collectors just love being on TV.  If you really have your heart set on a car that's going across in "prime time", you may find yourself bidding against guys with big bank rolls that want to put on a show. 

• Don't Be Charitable

Inevitably, there will be a number of vehicles that go across the blocks for some charitable cause.  It's a good thing, but don't waste your time trying to buy one of these rides unless you have money to burn.  These auctions are for the big money collectors who will always overpay by some ridiculous amount in the name of…whatever it is.  So, unless you want to buy a $100,000 Harley-Davidson, don't waste your time.

• Research - Research - Research

The Mecum folks do an excellent job of cataloging the vehicles for months leading up to the auction.  Spend some time going through the list and have cars on your radar with prices in mind that you think they're worth.  I had a binder last year with every car listed (with photos) and priced so I would be ready if something I wanted stayed low.  There will always be a few last minute additions when you get there, so if you have a friend (Barry - be ready again this year) sitting near a computer you can call to do a little research, great.

• Inspection Time

Another good reason to hit the auction early is to inspect the cars you're interested in.  When they're in line to roll over the block, you won't be able to really look at them like you'll want to.  I like to take my time and really go through the cars I want so when they roll through, I can sit in the back and calmly focus on bidding.  Bring a flashlight, preferably LED, so you can look for fluids on the block or rust underneath.  Sometimes you'll even find the owners by their cars and you can chat with them about the history and condition of the vehicle.

Using my LED light to inspect a clean little Lotus Twin-Cam Engine.

 

• Don't Get "Shilled"

If a vehicle has a reserve and it's not up to it yet, the auction company will sometimes raise the bid artificially to try to get it to the reserve.  It’s legal, but to me it's the same as "shill" bidding - bidding up your own item.  If I'm bidding on a vehicle and someone bids against me, I always make sure I can see who it is before I place another bid.  I'll even ask the ringman who's taking my bids "who placed the last bid?".  If I suspect the auction company is upping the bids against me without a legitimate bidder I walk away from that car immediately.  Like I said, it's not illegal, but I just find it a little dishonest. 

• Deal(er) Or No Deal

Vehicles running through the auction come from one of two places:  Dealers or Individuals.  It's not impossible to get a great deal on a dealer consigned vehicle, but realize that these people aren't in the business of losing money.  They know how much cars are worth and how much they have in their car, and they usually won't let it go for less than that number.  While doing your research on cars you can usually figure out which ones are coming from dealer stock.  I would suggest focusing more on cars from individuals.  The sellers have already paid at least $500 to consign their vehicle whether it sells or not, they're being pressured by the auction company to drop the reserve because Mecum makes a lot more money on sold cars, and many times they just want the car gone so they can buy something else for the garage.

Diving Miss Nelly!  This Caddy would have been fun, but Sterling McCall is one of the largest dealers in the country, so I knew they weren't giving anything away.

• Don't Get Handled

The auction company has what are called "ringmen" patrolling the arena to help wrangle bids.  If you want to bid on a car, you'll get their attention one way or the other and from that point on you guys are in it together.  They're necessary - there is no way the auctioneer could see every bid if they weren't there to relay them to him.  They're also usually very nice and helpful.  Just remember though, they work for the auction house and they are really good at getting you to spend your money.  I've been "handled" by some of the more famous ringmen over the years, and they all have unique styles.  Amy Assiter has helped me a few times in Dallas and she's very calm and friendly - sort of makes you forget you're bidding.  Jessie Cobb helped Nel and I in Pennsylvania once and he was a little more "matter-of-fact" about our bids.  "Chicken" George Boswell, on the other hand, is high energy and fun.  If you aren't careful with him, he'll work you up into a bidding frenzy and there's no telling what you'll end up with.

"Chicken" George Boswell is a lot of fun, and he's happy to help you spend your money.  SOLD - SOLD - SOLD!

• Don't Forget The Fees

If you buy something, you'll pay a fee to the auction house.  Mecum makes it pretty simple, but some places use a percentage method.  Don't forget to consider this extra cost when bidding.  I like to make a small sheet that tells me what to add at each price level.

• Don't Get Numb

"Expensive" is a relative term.  Some heavy hitters drop millions at an auction without flinching, others have $10K or less and are nervous about spending any of it.  My wife and I have the same money, but we have very different views of what's "expensive".  Regardless of your bankroll, it's very easy to sort of get numb to the amounts floating across the screen all day long.  If you sit there and watch hour after hour of cars selling for $50,000, $60,000, and $70,000, it's real easy to look at $20,000 as a drop in the bucket.  Stay grounded and don't get numb to the real values of the cars.

Here I'm realizing, sadly, that I don't really fit in a Triumph TR6.  Don't forget to have fun!

 The Mecum Auction is a fun experience and a great place to buy unique cars.  If you take the time to come prepared, you won't feel overwhelmed and might just roll out with a new toy (or two).