Consignment auction policy???

[winchman]

Hi,

Well, It looks like my family and I will be relocating to the North Phoenix, AZ area and that means I have to sell my tractor. /forums/images/graemlins/frown.gif My local dealer is having a huge consignment auction in two weeks. He has this aution every year and tons of people attend. I stopped by and asked how this auction works. He says that they would get 10% of what my package sells for. He also says that I can set a reserve price and if it is not met the tractor goes home with me and I owe him $35.
I'm thinking I would add 10% to what I want out of it and see what happens. If it doesn't sell, I'm only out $35 and my gas for hauling it over. Am I missing something? Is there anything I need to do to protect myself from anything that I'm not aware of? I'm not up on how auctions work and would appreciate any advice or comments. Does the buyer pay tax? Who pays me? Thanks in advance!

winchman

 

[cowboydoc]

You aren't missing much. That's pretty much how they work. The only thing you're missing is that at auction it's pretty much sold as is. That means the value won't be as great. If you're thinking of adding value by going to the auction I wouldn't waste your time. You will probably get 10-50% less than what you originally wanted for it. Put an ad locally and try and sell it. Go to the place you bought it and ask them what a fair price is. Get online to some of the auctions and see what they've been brining. This will give you a ballpark of your asking price.

 

[Bird]

Richard (Cowboydoc) has it right; not a problem to sell that way except for the fact that it may not bring nearly as much as you expect. And of course, that's assuming you have a reputable established dealer (and it sounds like you do). There have been a few instances of fly-by-nighters taking items on consignment, selling them, and disappearing with the money.

 

[winchman]

cowboydoc,

Thanks for the reply. I did have a guy tell me that sometimes these compacts bring more than they are actually worth. He said it just depends on the crowd and who is there. I figured at worst $35 and a twenty mile round trip that it might be worth it.


Thanks,
winchman

 

[Anonymous Poster]

Make sure you ask how long it will take to settle up if your tractor sells. A lot of auctioneers don't settle for 30 to 45 days.
If you're going to need the tractor, or a similar sized one at the new place, you'd be better off to haul the tractor than you will selling and buying again.

 

[winchman]

Bird,

This dealer has been having this auction for at least 15 years. I'm still amazed at the amount of people that show up. Thanks!

winchman

 

[winchman]

Franz,

I did not know to ask that. Thank you! I'll be sure to ask.
Where I'm moving, I may not even need a push lawn mower.

Thanks,
winchman

 

[thcri]

I would ask the dealer on how everyone is paid. A tractor of you size or anyones I guess would be a great loss to see the tractor go down the road and for you to get a bad check. I would make sure there is some type of money order or who guarantees the money. I would think since the dealer is making a commission he would guarantee it somehow but that could be in that fine print.

murph

 

[WVBill]

"Sounds" good - but get it in writing.

 

[cowboydoc]

Yep that story gets floated around from the west coast to the east coast. Having been to more auctions than I care to remember it's the exception rather than the rule. It rarely, ever happens. Yes once in awhile but usually not at these kind of auctions.