Quote:
Originally Posted by HighPlainsDrifter
Hi,
I think there are a number of rich guys that scheme to buy cars and sell them in a couple years for higher prices. They do not pay taxes on the difference. So say they buy it for $400,000 and sell for $550,000. they have a $150000 profit and do not pay capital gains on it.  The bad thing is the average guy is outpriced from a cool car.
perry |
The strategy fails often enough. When I sent my Ford GT to BJ they really thought it would be a 400+K car. It was the last auction they entertained reserve and I'd asked for it but in a conference call with Steve and my rep they were convinced it would get over my reserve as it was the only Heritage at the auction. They promoted the hell out of it - lots of press featured it first in the articles and press releases and the car made the cover of the auction catalog. The car was in a string of other cars that did go for their expected number or higher. (By now, they are really good at estimating the prices.) I can't fault BJ for promoting it.
Anyway, mine went for 290K - 160K under estimate. No logical reason. One remote bidder and one guy in Craig's skybox were the remaining after the people that think it was a 10K car.
The buyer shipped it to the Mecum auction in Florida a few weeks later. It didn't sell for much more. Now "regulars" at Mecum do get a break on the commission and since the buyer at BJ was in Craig's skybox, he might have gotten a break on the buyer's commission. But if the seller had to pay full commissions on both BJ purchase and Mecum sale, he lost money. If he didn't pay any on either end he might have made 20K.
The lesson is that auctions are a crap shoot...
Also, a lesson was had when Carroll's Supersnake was sold. The first time it was bought by Ron Pratte for 5M. When Pratte liquidated his collection it sold for $5M.