Cars that have been at auction - does that effect value?

[Dennis in SE PA]

I am not talking about EBay type auctions where one private seller or dealer sells to a private seller. I am talking about cars that show one or several auction appearances on their carfax/autocheck reports.

One negative I have found - a nice 95 NSX-T that is near me went through the auction process 4 times and has no paperwork, not even a book with stamped service records. I am thinking there must be a deduction of $3-$5 k per appearance at an auction. The car I am talking about has 39K miles, good paint, a CompTech exhaust and intake. Asking price is $44K. It drove great. I am a newbie at this NSX buying process hoping to learn something here.
Thanks,
Dennis in SE PA

 

[Lud]

I wouldn't really say that the auction process per se devalues a car, but it seems a disproportionate number of NSXs that go through auction have issues. It is also an issue if there is no documentation for the maintenance and you cannot track it down on your own.

Obviously the newer cars just off lease are less likely to have issues than the '91 that is on it's 5th auction, but you still need to evaluate the car itself to make a judgement. A 2000 NSX could be a clean NSX just off lease, or it could be a total disaster. A repeat auction 1991 NSX could be a basket case, or it could very well be a nice car dealers have been taking in on trades and didn't want to hold onto, so they've been auctioning it.

I can't see why there would be any deduction PER auction. After it goes through once and you don't have the car's history, that doesn't change with subsequent auctions. The condition of the car is what ultimately matters. You just need to be diligent with your pre-purchase inspection process.

 

[docjohn]

I echo Lud's comments.Also I personaly feel that cars going through auctions like Manheim are kind of orphined in a way.They have left the usual individual owner seller loop.You have to realize that the folks at these auctions are dealers but also wheeler dealers who bring cash and figure they can pollish up or patch up a car and resell for a quick profit,works ok for a civic or neon but an nsx?Bottom line is if you are looking at an auction car the greater responsibility is on you to verify its condition,imo.

 

[JAM]

My .02 is I agree with the above comments as well !
I own an Auto Locating company in NY, and see there are cars that make their way through the auctions for dealers looking for quick profit on hard to find cars, but there are plenty of cars with issues. I know of one NSX with some frame issues that I saw at 6 different auctions in 4 states, from NY, PA, and DC ... now the car is in CA.
I personally don't think the auction history devalues a car, as there are many wholesalers who "farm" cars from auction to auction for a small profit. Also, there are many dealers who use credit to buy a car, and if they cant sell it right away, rather than accumulate interest costs, they resell it at auction. Just use caution, and have the car professionally checked out by both a dealer AND a collision shop!

PS: If you see an Auction history and are interested in finding out where and for how much they have sold ... email me and I will try to get an auction review for you!

 

[Dennis in SE PA]

Thanks guys,

It is the "orphaned" status that concerned me. I try to buy and sell my cars privately. I take care of my cars and want them to go to a good home. Sounds corny to some I know, others feel the same way. The last 2 cars I sold actually sold to the first persons to come and see them. I had them priced right and they were in great shape. I prefer to buy a box stock 95 or newer (gotta have that T top!) NSX from an individual. That failing I would buy from a dealer. As soon as the 911 sells I will be on the prowl seriously.

 

[Joel]

Thanks guys,

As soon as the 911 sells I will be on the prowl seriously.

Another Porsche owner making the switch, eh?!
I'm recently noticing that this incident happens more often than not.