I was just wondering if I am missing the concept here.
In the past few weeks, I have "watched" no less than 30 cars. Not so much for myself (so to speak) but to see what they sell for. I think that is one of the reasons for the "watch" list isn't it? Anyway, out of the 30 cars maybe 2 hit the reserve and sold. The others apparently are either waiting to relist, have relisted or otherwise.
I am not sure.
In the past month or so it seems I have "watched" maybe 100 cars, and maybe 10 hit the "reserve", and 5 of those were listed with NO RESERVE.
I didn't take notes or anything so I am going off memory (And I am not going to say I have a good memory)

Can someone explain what the benefit of having a reserve set so high something doesn't sell? Why auction something off if you don't "really" want to sell it.
Statistically speaking, it appears to me the cars listed with NO RESERVE or low reserve bring in more money and more "bids".

the idea is to get what you want for it.... not "sell it"....

make sense?

So why not start the auction at what the seller wants and let it ride from there?


the idea is to get what you want for it.... not "sell it"....

make sense?

So why not start the auction at what the seller wants and let it ride from there?

Great question...

I think that the idea is that by starting lower than reserve, more than one buyer will begin bidding at the lower figure,with the hopes that one will try to outbid the others at the end of the auction,and reach the reserve.

Its kind of banking on the fact that some folks get caught up in the excitement, and might bid higher than they normally would.

As for me, I almost always use the Buy It Now feature,as opposed to regular auctions with reserves. I have also tried "best offer" style auctions,but the offers received are downright offensive at times.

I figure if someone needs an item we have listed,and the price seems fair, they'd much rather use the "buy it now" feature. :yes:

Its kind of banking on the fact that some folks get caught up in the excitement, and might bid higher than they normally would.

Wouldn't this also work if you started it at the VERY bottom $ of what you expected to get for it?

Guess that depends on what you need for the item. If the low side of reserve is still higher than someone wants to pay, then no.

I'm assuming you're referring to stealbay auctions. My belief is that people set the reserve unreasonably high looking to get the highest possible amount and then send the highest bidder a "second chance" offer at that price. If they set a "buy it now" or a "reserve" and it's met, they are obligated to sell it at that price. By setting the reserve sky high, they may get a higher bid than the item is really worth, which is true most of the time on stealbay from my experience anyway.
The last car I sold on there, I did a "best offer" with a "Buy it now". With a best offer auction, you can set a minimum that you will consider, which weeds out the stupid offers that Bob mentioned. I did get 3 offers at my minimum considered level, but the car sold at the buy it now price and was gone.

My belief is that people set the reserve unreasonably high looking to get the highest possible amount and then send the highest bidder a "second chance" offer at that price. If they set a "buy it now" or a "reserve" and it's met, they are obligated to sell it at that price. By setting the reserve sky high, they may get a higher bid than the item is really worth, which is true most of the time on stealbay from my experience anyway.
So the truth comes out, this is sort of what I was thinking too.

Look at it this way. How many regular classified ads do you look at? Lots and lots right. I know when you are looking at them you are thinking that 98% of them are overpriced. You probably look at 200 ads before you find one that is a good price. So what is the difference if its ebay or a regular ad. You will still think most are overpriced.

Just thought I would comment on this topic. I travel all around the country buying and selling mostly classic chevrolet cars and have found that Ebay is the place to buy if you want to pay "retail." From my research and experience with auctions in Belvedere IL.(mecum), Auburn IN.(kruse), and sometimes barrett jackson,(most of the auctions are no reserve at BJ) you do get more car for the dollar at these auctions. Yes you do pay a buyer's premium on top of sale price, but unless you buy the real highend cars it still would be less than you would pay on Ebay. Most of the bids on Ebay tend to be "feeler" bids and most people bidding do not have the resources to back up their bid. Putting a high reserve on some cars protects the seller from bogus bids. It also gives the seller a little idea on what his/her car might sell for. It is cheaper to pay listing fees on Ebay than to run your car through a traditional auction with a reserve price. Most auction houses will charge just to run through regardless if you sell or not. I still think classified ads is where you can find cars that are closer to "wholesale".

You will still think most are overpriced.This was not the point whatsoever. I did not say what price range I was "watching" or even what type of car for that matter.

Just thought I would comment on this topic. I travel all around the country buying and selling mostly classic chevrolet cars and have found that Ebay is the place to buy if you want to pay "retail." From my research and experience with auctions in Belvedere IL.(mecum), Auburn IN.(kruse), and sometimes barrett jackson,(most of the auctions are no reserve at BJ) you do get more car for the dollar at these auctions. Yes you do pay a buyer's premium on top of sale price, but unless you buy the real highend cars it still would be less than you would pay on Ebay. Most of the bids on Ebay tend to be "feeler" bids and most people bidding do not have the resources to back up their bid. Putting a high reserve on some cars protects the seller from bogus bids. It also gives the seller a little idea on what his/her car might sell for. It is cheaper to pay listing fees on Ebay than to run your car through a traditional auction with a reserve price. Most auction houses will charge just to run through regardless if you sell or not. I still think classified ads is where you can find cars that are closer to "wholesale".
Interesting read, I appreciate the insight.:thumbsup:

I think it's possible that a lot of these are simply for the exposure, free advertising. An ebay listing will expose the car to xillions, and you don't pay unless you sell thru ebay.

I think it's possible that a lot of these are simply for the exposure, free advertising. An ebay listing will expose the car to xillions, and you don't pay unless you sell thru ebay.
I assume this not only to be true, but alot of them may be looking for the "outside" offer. Often times accepting offers privately during or "after".

I thought there are listing fees with each time something is listed? Is there only one fee at the beginning of the first ad and you don't get charged the re-list fee if it doesn't sell or hit the reserve?

I think alot of the cars on ebay have high reserves set to get an idea what people will pay for the car, and if you're crazy enough to meet the ever higher than usual reserve, chances are the seller will be thinking "gee for what he paid for my car I can go out and get another one even nicer"....at least this is my thoughts.

Also from what I have read the reserve is designed to start the car off low without being obligated to sell to help generate more bids. A car that's been started off high has a lesser chance of getting bids.

I think it's possible that a lot of these are simply for the exposure, free advertising. An ebay listing will expose the car to xillions, and you don't pay unless you sell thru ebay.
I tend to agree and further believe that most people are hoping for the "greater fool" theory where someone will want their particular vehicle so badly they'll pay a premium.

I know of someone who used to set unrealistic prices and reserve amounts. He doesn't sell cars, but the concept is the same. He has no intention of parting with the item unless someone is really stupid enough to pay full price. His reason for doing this is to get a reputation for always having the 'really good' stuff for sale. He then hopes that shoppers (buyers) will contact him off-line to ask about other high-end stuff that he may have access to. No listing fees, no cut of the sale price, etc. etc. Some buyers will spend big bucks to snag an item without having to wait for the auction to end or to risk getting sniped in the last few seconds. Now that EBay has made it more difficult for buyers and sellers to contact each other outside of an auction, I don't know how well this tactic works anymore.

The contact is simple on ebay, just list your phone number.

While Im not giant fan of Ebay, I did purchase my car off the website. I was driven to them due to very low numbers of cars being sold locally. I dont think I did bad...bought mine for 16K 4 years ago. The pics in my signature are how i bought it. I do agree that ebay has its faults, but there are some decent deals still t be found there. Just my .02
James

I do agree that ebay has its faults, but there are some decent deals still to be found there. Just my .02
James
I also agree, many deals to be found, like the stuff people buy brand new, never open the box and you can get it for a 1/4 of the new price. (Guilty myself:o)

What do you think about the "reserve" in general? :confused:

While Im not giant fan of Ebay, I did purchase my car off the website. I was driven to them due to very low numbers of cars being sold locally. I dont think I did bad...bought mine for 16K 4 years ago. The pics in my signature are how i bought it. I do agree that ebay has its faults, but there are some decent deals still t be found there. Just my .02
James

I also agree, many deals to be found, like the stuff people buy brand new, never open the box and you can get it for a 1/4 of the new price. (Guilty myself:o)

What do you think about the "reserve" in general? :confused:

You're both right, there are deals there, just not on "collectable cars" like the original subject matter.
I have bought video games and jewelry for my son and wife and gotten good merchandise at reasonable prices.
Ebay isn't all bad, just the special interest vehicle catagory.