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Can cheap be expensive

We often get asked whether buying at auctions is really a wise choice. Auctions are trendy and seem like a great sales and purchasing channel for dealers, but recently, they've also become popular with private individuals. The reach is vast, there's no hassle or endless bidding, and often (in the case of online auctions), the car can stay with its owner. Most importantly, the turnaround time is short. This is especially true for online auctions. Traditional auctions tend to have a much longer lead time, both in terms of sourcing and marketing, and are usually physical events.

Selling and buying at auctions depend on the clarity of the information provided. A brief listing with just mileage, year of manufacture, a few accessories, and about 10 photos doesn’t say much. This might be enough for an average ex-lease car, but a detailed photo report with at least 100 pictures of all relevant (and sometimes irrelevant) details, along with a clear description of the car’s condition, can give an excellent insight into a car outside the usual range. If the history of ownership and maintenance or damage records are included, you get a complete picture on which anyone can base their value. Most of the time, you can find all the necessary information online to support the story.

Everyone wants a car with no damage history, maintained to the last mile, and ideally, from the first (Dutch) owner. If it's a special model with low mileage, it’s "perfect".

Unfortunately, such cars are rare. Not in sales and not in auctions. These cars are often cherished by their owners, who either don’t want to sell or want the highest price.

On the other hand, there are cars that have had many owners recently and have an unclear maintenance history. This is often evident from large gaps in (or absence of) maintenance records, tyres with an old DOT code, or B-brand tyres (plenty of tread, but little grip). They’re usually nicely polished and look good from a distance, but fall short when you take a closer look.

For these cars, the viewing day, which most auction houses offer, is a great opportunity. The buyer can assess for themselves what they think of the car. If the price is right in relation to the expected costs, it may not be a bad purchase. The problem often lies in the fact that the owner (if not a dealer) might have a completely different price in mind. Thanks to the internet, it’s easy to get a price estimate.

We were recently offered a car where the owner expected at least 120-140k. That’s what most “average” models were selling for. A quick inspection revealed that: a) the colour wasn’t original, b) the engine ran, but leaked a lot of oil, c) the underside had significant rust in places, d) the paint thickness couldn’t even be measured in some spots, e) the mileage was already quite high, and f) the necessary maintenance had been done, but nothing more (despite all the “overhaul” invoices). It’s a nice car to look at and even to drive, but restoring it to a neat classic would require a serious investment. For a handy person, it might be a profitable challenge, but as an investment, it’s not ideal, as it’s a high-mileage car that will eventually require a lot of money. In short, if the car sells for half the expected amount, that’s already a good deal.

What I’m trying to say is that a well-maintained car may sometimes seem expensive, but it often pays off in the long run. The new owner simply needs to continue the careful maintenance, keeping the car in good condition, and this will be reflected when the car is eventually sold.

We regularly auction real gems — cars from true enthusiasts who have taken great care of them. Last year, we auctioned the Dark Rush collection. All cars had low mileage and were well-maintained at the dealer every year. Preventive maintenance, such as replacing connecting rod bearings (a known BMW issue) as early as 40,000 km, was even done. Not strictly necessary, but it gives the buyer a lot of confidence. The buyer paid a fair price compared to the market, but they bought a car with a clear, worry-free history.

We also auctioned a Porsche 930 Turbo. At first glance, it looked like a great car, but it had a significant gap in its history. However, there was a lot of recent maintenance and overhaul work. It sold for a reasonable price by today’s standards. For the seller, it was a fair price, but for the buyer, it’s a nice car to restore with some love and care.

In short, cheap doesn’t have to be expensive, as long as the buyer understands that the car may need attention to bring it to top condition. On the other hand, the buyer might also accept the car as is, enjoy driving it, and take future repairs in stride. This brings us to another point. Some cars are almost too good to drive — they’re stored away and only taken out for the occasional MOT check. All in the name of increasing or decreasing value.

In general, classics that meet certain criteria (e.g., good brand, sporting success, limited production, and ideally low mileage and few owners) tend to increase in value over time. However, there are also downward trends. Over the long term, things (almost) always improve. But if you’ve just invested a large sum and have to sell because you have something else in mind or need the money for, say, renovations or unexpected expenses, it could go wrong if the market is in a slump.

So, buy a “toy” wisely. This means no bottomless pit (i.e., “it was so cheap”), no borrowed money or your last euro, but buy because you genuinely like the car, find it special, or enjoy driving it. A return is nice, but it’s not guaranteed. Insurance, storage, maintenance, and tax will always be recurring costs, unless you have the space and stop driving it, of course.

Buying at an auction is exciting, but remember: use your wits and, when in doubt, go see the car before bidding — especially if the description is brief. Sometimes it’s disappointing (everyone has their own standards), but often it’s not so bad because the details that are listed are usually overlooked or seem insignificant at first glance.

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