The more documentation you can provide the better, as this raises confidence in your car in the eyes of those buying. Make copies of all paperwork associated with your vehicle, from its logbook to service history, and include this in a folder within your car.
If your car requires its annual MOT, make sure you get this taken care of before the auction. Enter a few details to sign up to the latest automotive news from Car. Share this blog: Twitter Facebook Email. How much cheaper are cars at auction? Should I sell my car on an auction site? The many talents of the performance estate. About Car. Our media. Please correct the marked field s below. New Reg Limited is a loan broker and not a lender. New Reg Limited has partnered with Warrantywise Limited for the purpose of offering car warranties in accordance with the terms and conditions documented on the warranty check-out page.
Follow us Twitter Facebook Instagram Youtube. Thank you for Signing Up. Rosenkranz and Schmitz comment: ''In the real world, a bidder''s willingness-to-pay does not only depend on his or her intrinsic valuation of the object to be auctioned off, but also on psychological reference points: We all seem to constantly draw comparisons that determine our valuation and thus our willingness-to-pay.
They often include secret reserve prices in combination with public expert estimates. In the light of our study, their practice seems to be in fact not only in their own but also in their sellers'' interests. A publicly announced reserve price is one of many factors that can determine a bidder''s reference point. After all, if there hadn''t been other bidders, the object would have changed hands for the minimum bid, and it just does not feel so good to pay much more than this reserve price.
Moreover, the more potential bidders, the higher should be the reserve price, when taking the ''reference point effect'' into account. The bidders' psychological reference point will also depend on factors that the seller cannot influence, for example, selling prices in auctions of related items or estimates delivered by auction house experts.
If these factors imply a high reference point, then the seller should keep the reserve price secret, because a public reserve price could only reduce the bidders' reference point. The psychological reference point effect implies that the higher the reference point the more are potential buyers willing to pay. When the reserve price is kept secret, the seller''s expected revenue is larger if he or she uses a second-price instead of a first-price auction, which is in contrast to results obtained in traditional studies that ignore the psychological importance of reference points.
This can be agreed to by a seller to encourage bidders. Reserves are designed to let the seller set a minimum threshold for what they are willing to sell the vehicle for. This can protect the seller from losing money on their vehicle, some of which are maintained or customized as an investment.
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