Tricky car auction tricks.

I did not realize the auctioneer could do that stuff.

Out of Balance: Read The Fine Print

By Terry Shea

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December 4, 2025At a live auction in Monterey this past August, an auctioneer seemed to call out, “Sold!” on a 1956 Continental Mark II, dropping the hammer on a $31,000 bid. Almost instantly he accepted another bid and the car ultimately sold to someone else at $33,000, plus fees. Understandably, the moment caused more than a little consternation for the initial bidder who thought he had won the car.

The story, fueled by that jilted bidder’s presence on social media, caused a fair share of consternation for the auction house as well. But here’s the thing about live auctions that every bidder should know, whether they’re in the room, on the phone, or bidding digitally: The auctioneer is pretty much the be-all, end-all boss of the festivities. It’s right there in the fine print.

Mecum’s bidder agreement reads, “The auctioneer will use reasonable judgment in evaluating Bidders’ claims of auction confusion. However, the auctioneer’s determination(s) in these circumstances is/are both final and non-appealable.” Case closed.

Other auction houses have similar wording, surely created and vetted by a team of lawyers. Bonhams’ agreement declares that “any dispute regarding the [HIGHEST BID] shall be settled by the Auctioneer in his or her sole and absolute discretion.” The RM Sotheby’s “condition of business for buyers” document also includes language that gives the person with the gavel “absolute and sole discretion, whether during or after the sale, to determine the successful Bidder, to re-open the bidding, to cancel the sale, or to re-offer and re-sell the Lot in dispute.”

Do you know what else auctioneers can do? They can bid a listing up to the reserve. It’s not unheard of that a sole bidder may be bidding against the house and not even know it. These bids are known as “chandelier bids.” It’s as if the auctioneer is acknowledging a bid in the back of the room that could only possibly have come from the chandelier hanging there. Rest assured, an intrepid auctioneer can likely find another inanimate object to source a bid in the event there are no chandeliers in the room. A wall will often suffice.
In online auctions, bidders have to be on the lookout for “sniping,” when a last-second bid slips in just before an auction ends. When that happens at Hemmings Auctions, we add two minutes to the clock. Ironically enough, that mimics what’s supposed to happen at a live auction, when the auctioneer works the room, calling out “Going once! Going twice!” In that moment, he’s soliciting a higher bid. If he gets that bid, he doesn’t immediately hammer it sold. He works the room again, repeating the process until there are no higher bids.

No-reserve auctions are a blast to watch. Every bid from the first one on is a potential winner. Nobody knows if the sale will be a bargain or have multiple bidders pushing it well beyond expectations and estimates. However, the auctioneer can even place a bid on a no-reserve lot. Early in my career covering the collector car business, I witnessed an auctioneer start the bidding on a no-reserve lot with the words, “The house opens the bidding at $50,000.” That move was a surprise to me and a few of my fellow observers, several of whom were wearing bidder badges.

I soon learned that the practice was not unheard of. A no-reserve lot can be pretty nerve-wracking for a seller. When the auctioneer places a bid on such a lot, he does so on behalf of the auction house, not the seller—that would be illegal—ostensibly offering a guaranteed minimum price that the house is willing to pay.

Back to our frustrated bidder from Monterey. He was no rookie, but a third-generation classic car dealer who knows the market, knows the process and has been through the auction experience plenty of times. To say he was upset at the 180 pulled by the auctioneer would be an understatement, but nothing about what went down was against the law or the agreement he signed.

There’s real money at stake in a collector car auction, so read the fine print—maybe twice....maybe more !

 

sc4ram 18 hours ago A great subject (thanks for tackling it) . So my first question is , if the auctioneer acknowledges a bid on behalf of the House, and it's the winning bid, does the House buy the car? Presuming that is so, how often does that happen? I've been to several of the big (the 2 major Houses that are often broadcast on TV) auctions over the years, (and have watched a lot of them on TV) . First, I'm a capitalist, and obviously these guys aren't in business to give me a crazy low price on a car (that would conflict w/ the seller's interest).

Just to share some experiences, I use to go to a lot more of these auctions when my Car Club provided free or discounted bidders-passes. That perk has disappeared. I've read the terms, as you imply they strongly favor the House. My take is its a "as is" sale, and all that's guaranteed is the title. If u purchase a vehicle you are obligated to get it off the grounds by the end of the day ( I live 90 min away from 2 Auction locations, to arrange a ride/transporter tags etc is probably going to take me longer) .

A few years ago, I noticed a Model A on the docket that interested me. I went to the auction, and by luck, I saw the car drive buy, heard it run, all good. Gave it a closer look in the line up. Asked a attendant to open the hood, upon closer inspection , noticed the water pump was leaking coolant. Also noticed the VIN# on the engine didn't match the stated VIN# on the Auction tag on the windshield. I walked the car lots and came back when the Model A was approaching the block. I saw a older gent hanging around the car. I asked him if it was his, he said no, but he knew the car and it had been owned by a quasi-famous person out-of-State. He vouched for the mechanical condition of the car(which peaked my interest).

The dome light had been left on killing the battery. So they pushed it onto the block, said nothing about the leak, VIN# discrepancy, or notable owner. It sold for the robust top of its market value. That experience makes me wonder, if I had come in there as a binge shopper and bought the car on a whim, I would of had a car that leaks and a challenge transferring a out of state title (which requires VIN# validation by law enforcement), and be obligated to move it in a few hours. Other than I'd assume they'd stand behind the title, contractually I'd have no recourse on anything else. Am I the only one that thinks this way? I see a lot of people buy a lot of cars at these auctions..

 

terraranger informative article Terry, I've seen those 'fake' offers bid the price up at ranch auctions and such. I'll just take myself out at that point, sometimes frustrating the auctioneer and his 'team'. who just made a fake bid.specially the house establishing a bid I think I'd be more inclined to put it on the ''best offer'' column, after all, Hemmings has coverage enough you probably will sell for what the market bears?

 

• Susan1-30 I can relate to that. A few months ago I won a bid on a 1968 Camaro, was congratulated by Hemmings that I was the highest bidder. The next morning I was called and told that there was a “glitch “ in the system & someone else was the highest bidder. TOTAL BS!!
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  Petrosoniak
• Phantom bidding also smells. If there is a reserve, just say so, or start the bidding at that price and see what happens. Or start at a high number, and start coming down. Anything that is less than transparent stinks.