Latest / BREAK/FIX the Motorsports & Vehicle Enthusiast Variety Show / Pit Stop: Auction Pro Tips with John Kraman (Patreon Special Re-release)

Transcript

Pit Stop: Auction Pro Tips with John Kraman (Patreon Special Re-release) · BREAK/FIX the Motorsports & Vehicle Enthusiast Variety Show

• 0:00
  We always have a blast chatting with our guests about all sorts of different
• 0:03
  topics, but sometimes we go off the rails and dig deeper into their
• 0:07
  automotive and motor sports pasts.
• 0:09
  As a bonus, let's go behind the scenes with this pit stop mini.
• 0:13
  So for some extra content that didn't quite fit in the main episode, sit back
• 0:17
  and enjoy and remember to like, subscribe and support break fix on Patreon.
• 0:24
  Well, let's drop this thing into fourth and talk a little bit more about Kom
• 0:29
  itself and the different auctions.
• 0:30
  You as a commentator, as you mentioned earlier, have to travel all over
• 0:33
  the country to different events.
• 0:34
  Obviously mecham's biggest event of Year being Kissimmee.
• 0:37
  There's lots of others, Monterey, Harrisburg, Las Vegas
• 0:41
  with the motorcycles only.
• 0:42
  Things like that.
• 0:43
  How do you, as a commentator, make them all feel different, make them unique?
• 0:48
  There's always the variables.
• 0:49
  You've never know what kind of car is gonna show up.
• 0:50
  Sort of like a box of chocolates, right?
• 0:52
  But when you're preparing for these events, how do you get focused on the
• 0:56
  different geos that you're stepping into?
• 0:58
  Fortunately for us, it takes care of itself because each of our own individual
• 1:03
  auctions has its own personality.
• 1:05
  And let's take two extremes that you mentioned.
• 1:08
  We'll take our Kissimmee, Florida auction.
• 1:10
  Now we're keep in mind, we weren't Kissimmee twice.
• 1:12
  We were there in July for what we call our summer special, but that's a
• 1:15
  fraction of the size of our big auction.
• 1:17
  World's largest collector car auction.
• 1:19
  It's in January, Kissimmee, Florida, which is Orlando by the way.
• 1:22
  That's a monster.
• 1:23
  That is an event that is a bucket list item for so many car enthusiasts.
• 1:27
  Just to be able to go to that and experience 4,000 cars crossing the
• 1:32
  auction block over a period of almost two weeks, it's just incredible.
• 1:36
  It is so big.
• 1:37
  And so much fun and it's continuing to grow and grow and grow each year.
• 1:41
  Then let's transition over to talk about our Monterey California auction.
• 1:45
  That's our traditional auction during Monterey Car Week.
• 1:47
  That's obviously mid-August every year.
• 1:49
  It's our smallest individual auction guy.
• 1:52
  It's only 600 cars.
• 1:53
  Of that 600 cars over three days, we will have the highest per
• 1:57
  car average of any Mecu auction.
• 2:00
  And I tell you this contrast of these two, because each of our auctions has
• 2:04
  their own distinctive personality and purpose, and part of what we do in
• 2:08
  setting up a day's lineup of cars.
• 2:11
  Keep in mind, typically our shows are six hours long.
• 2:14
  We'll explain at the top of the show.
• 2:15
  I will.
• 2:16
  Okay.
• 2:16
  Here's what we're gonna see today.
• 2:18
  Based on our experience, this is what we can look forward to, these types of cars.
• 2:22
  And of course, I just have to say, so much of what we do are cars that are
• 2:26
  in that entry and mid-level category that are affordable to a lot of people.
• 2:30
  And that's fun to see people come and buy a car that they wanted.
• 2:33
  And then two, three years later, we see 'em back.
• 2:35
  They're selling it, you know, they're selling the, uh, ssss 3 96
• 2:38
  and they're buying G t o r 4 4 2.
• 2:40
  And then they're gonna do the same thing in a couple years, 25, 30, $40,000 cars.
• 2:44
  Maybe they're getting their money, maybe they're making a little bit,
• 2:47
  maybe they're losing a little bit, but they're having fun experiencing
• 2:50
  a variety of different cars.
• 2:52
  There's some auctions that are better suited.
• 2:53
  For, call it the casual enthusiast, and then there's some that are suited
• 2:56
  more for the stuff on the high end and other auctions that we have that span
• 3:01
  the entire spectrum of car collecting.
• 3:04
  It's easy for us to be able to understand now after doing this on TV for 16
• 3:09
  years to know really what to expect.
• 3:11
  Always a few surprises, but it's pretty easy for us to manage that.
• 3:16
  We're coming up to Monterey here pretty quick, aren't we, John?
• 3:18
  Monterey's right around the corner for us.
• 3:20
  You know, I, I remember going to Monterey and it was always fun.
• 3:23
  You do a lot of foreign cars at Monterey, you know, and Mecu has gone from
• 3:26
  that, uh, mussels and more to pretty much, you know, you want anything.
• 3:30
  You want a ferra, no problem.
• 3:31
  You want a Bentley, no problem.
• 3:32
  You want a Mustang, no problem.
• 3:34
  They'll get it for you.
• 3:35
  What can people expect when they go to Monterey?
• 3:37
  Obviously it's a smaller auction than what say Kissame would be.
• 3:41
  What can they expect when they go to Monterey?
• 3:43
  Monterey?
• 3:43
  Strategically, we've been able to craft that.
• 3:46
  To suit a specific purpose, first of all is in the title
• 3:49
  says a lot, the daytime auction.
• 3:51
  We know at Monterey during car week, there are a lot of events to
• 3:55
  attend, and a lot of those events are social events, and a lot of those
• 3:58
  events are in the evening hours.
• 4:00
  So as the daytime auction, what we do is.
• 4:02
  We wanna make sure that we get a full day's auction action in, but
• 4:05
  yet still will allow people to go out and do other things in the course
• 4:09
  of the afternoon, into the evenings.
• 4:11
  So we limit it to 600 cars, 200 cars per day.
• 4:14
  The auction will start at 10 o'clock.
• 4:15
  We'll be done by about three o'clock in the afternoon.
• 4:17
  It's the only auction like this too.
• 4:19
  We'll have more Ferraris.
• 4:21
  Than Camaro's, we'll have more Porsches than Mustangs.
• 4:23
  Doesn't happen in any other Mecca auction.
• 4:26
  Remembering one of the auctions I went to, it was a massive
• 4:29
  tent and it was just filled with these F forties, xj two twenties.
• 4:33
  I mean, it was just mind blowing.
• 4:35
  And I remember going to a couple of our subscribers later on that day,
• 4:38
  and they were Ferrari collectors.
• 4:40
  I remember telling them, did you see the tent at Monterey?
• 4:42
  At Mecu?
• 4:43
  What do you mean?
• 4:43
  The tent?
• 4:44
  And I said, oh dude, you've gotta get over in there and see this tent.
• 4:46
  They've got like five F 40, they have F fifties, they have Enzos, they have xj.
• 4:50
  Two 20, they have this.
• 4:51
  I'll never forget that.
• 4:52
  Look, MECU.
• 4:53
  I'm like, yes, MECU, you've gotta go over there.
• 4:55
  One thing I've always loved about mem, it's always been
• 4:58
  a real family friendly event.
• 4:59
  Is there a fee attached to go as a spectator?
• 5:02
  Do you know that?
• 5:03
  Is there a fee?
• 5:04
  Yeah.
• 5:04
  Tell you what, if you buy tickets@advanceatmecom.com, it's $20 kids.
• 5:09
  12 and under free.
• 5:10
  If you wait for the day of the auction and you just walk up and
• 5:13
  you wanna buy a ticket, it's $30.
• 5:15
  That gives you full access to come into the auction grounds.
• 5:18
  Look at all the cars.
• 5:19
  We've got seating available for those folks that are not bidders that just
• 5:23
  want to sit and watch the action, there are no areas off limits to
• 5:26
  spectators, with the exception of the area right in front of the stage.
• 5:31
  We've got seats and grandstands for everybody.
• 5:33
  The feedback that we get for folks that aren't necessarily buyers, not necessarily
• 5:37
  sellers, Although a lot of folks get there and they see a car and they immediately
• 5:40
  go over and sign up to be a bidder, that's always a lot of fun to watch that go down.
• 5:43
  But the feedback we get, folks say a couple things.
• 5:45
  They say, number one, it's the best car show that we've ever attended
• 5:49
  because the cars are moving.
• 5:50
  There's the, the sound and the excitement, all of which is
• 5:53
  intentional in the bidding environment.
• 5:55
  That's all meant to stimulate our senses, our sense of competition.
• 5:59
  Urgency is stress, and just as a spectator, not somebody.
• 6:03
  Necessarily buying or selling is still very exciting to experience that.
• 6:07
  You watch 'em.
• 6:07
  You see people sit there.
• 6:08
  They sit there for hour after hour, kind of spell bound in the zone with
• 6:12
  us as less than every two minutes.
• 6:15
  There's a completely different car rolling onto the block that you see hear about,
• 6:19
  see whether it sells or doesn't sell.
• 6:21
  And what that dollar number is, and boom, right behind it is
• 6:24
  another car completely nonstop.
• 6:27
  We love spectators.
• 6:28
  We encourage it.
• 6:29
  Some auction companies do not.
• 6:31
  They want bidders only.
• 6:32
  We're just the opposite.
• 6:33
  We love the energy, the enthusiasm, the support, the
• 6:36
  excitement of having big crowds.
• 6:38
  To come in and just enjoy what we do with the thought, I guess in the back
• 6:42
  of our mind that maybe someday these folks will be a customer, maybe not
• 6:45
  at this auction, but down the road.
• 6:46
  But more than that, it adds so much to the experience for all of us to
• 6:50
  see people that are just there for the love of the automobile, not buying
• 6:53
  or selling, you know, going into that, what are some of the benefits
• 6:56
  to buying and selling at auction?
• 6:57
  It might sound like a stupid question, but literally what
• 7:00
  are some of the benefits of.
• 7:01
  I want to buy something or I want to sell something.
• 7:04
  There are other choices to both buy and sell a collector vehicle other
• 7:08
  than within the auction environment.
• 7:09
  But it's funny that over time, over a course of many years,
• 7:12
  again, BComm Auctions has been doing this for 36 years now.
• 7:16
  There is a, I guess, a reputation and a culture has developed as it
• 7:21
  being a full service satisfying.
• 7:24
  Fun to attend, fun to participate in, to go to an auction, pick out a car or
• 7:29
  two, buy a car, or if you're a consignor, to sell a car and not have to jump
• 7:35
  through so many hoops that you might have to, especially as a seller, if you're
• 7:39
  gonna sell on high-end collector car.
• 7:42
  Can you imagine a kind of.
• 7:44
  Inquiries you're gonna get from brokers and people that want to trade and all
• 7:49
  these stories that you're gonna hear.
• 7:50
  You can sign your card on Mecom auction.
• 7:52
  You don't give it another thought.
• 7:54
  We handle all of the drama, all the bidders, all the promotion.
• 7:58
  We handle literally everything from A to Z.
• 8:00
  We only need to know who to hand the check to when the smoke
• 8:02
  clears if they sell their car.
• 8:04
  That's it.
• 8:04
  That's all we need to know.
• 8:05
  So there's a big benefit to a seller, obviously for that purpose.
• 8:09
  We make it easy, we make it convenient, and we have a
• 8:11
  reputation for getting top dollar.
• 8:13
  So it's really kind of a win-win situation on both ends.
• 8:16
  Similar from the buyer's side, from the standpoint that it's.
• 8:20
  One, stop shopping.
• 8:21
  It's a superstore.
• 8:22
  It's not hunting on the internet.
• 8:24
  Traveling all over the place, spending money only to find out that
• 8:27
  a car's not what it was described as.
• 8:29
  Being disappointed and doing that two or three times and
• 8:31
  you begin to get disillusioned.
• 8:33
  Come to Amcom, auction.
• 8:34
  Get there day before the car or cars that you're interested in.
• 8:36
  Cross the block.
• 8:37
  Look at it at your convenience, at your leisure.
• 8:40
  There's gonna be a ton of cars to look at.
• 8:41
  Even if you decide not to buy any cars, you're still gonna stick around and have
• 8:45
  a good time, meet some people, and maybe just as importantly, maybe be exposed some
• 8:49
  cars that you hadn't really thought of.
• 8:50
  Learn about another car, or a body style or a color or an option.
• 8:54
  Maybe possible even change a direction on what you're collecting Strategy might
• 8:59
  be by being exposed to hundreds and in most cases, Thousands of collector cars.
• 9:04
  It's fun, it's easy, it's convenient.
• 9:07
  People see it on television.
• 9:08
  They want to do it well.
• 9:09
  I wanna sell my car.
• 9:10
  I saw it done at, I wanna be a buyer.
• 9:12
  I wanna be like they are.
• 9:14
  And it's just over the years guys, it's just snowballed and
• 9:16
  snowballed to the point where we're number one in the world now.
• 9:20
  There's just nobody else that's gonna come up from behind us and take over because
• 9:24
  our foot is to the floor right now.
• 9:26
  We're not backing off the gas.
• 9:27
  Frank Mecu is one of Dana Mecca's four sons.
• 9:30
  He's been slowly but surely and strategically taking over for his
• 9:33
  dad, Dana Mecu, who's still our president and still our visionary
• 9:37
  and still the guy that's in charge.
• 9:39
  But Frank has really been taking on.
• 9:40
  We have a new generation of Mecu family member that's gonna continue to take this
• 9:45
  company and move this company forward.
• 9:46
  And I'll tell you gotta give.
• 9:47
  I've worked with Frank side by side with him for years.
• 9:49
  Give him all the credit.
• 9:50
  For acknowledging that these European cars, both vintage and contemporary,
• 9:55
  from Ferraris to Lamborghinis and beyond, that this is gonna be a big
• 10:00
  part of Mecu Auctions going forward.
• 10:02
  And it has, but it's taken nothing away from the core of what we all
• 10:05
  started from, which was Muscle Cars.
• 10:07
  Corvettes and fifties, CHRO and Finn era cars.
• 10:10
  Heck of an organization, guys.
• 10:12
  But one of the things that comes to mind, and you guys bring it up quite
• 10:15
  a bit, and it's very important in the hot rod scene and the American classic
• 10:18
  car scene in the collector scene here in the United States is this concept
• 10:22
  of numbers matching, which is a little bit foreign to the import market.
• 10:26
  Now, B M W has gone overboard where they put the VIN on every panel and every
• 10:31
  part in the car, and that's a little bit.
• 10:33
  Too far to the extreme.
• 10:34
  And so how important is this concept of numbers matching in the auction world?
• 10:39
  That is probably the number one topic at different car shows, especially if
• 10:47
  there's judging there, where people are really wanting to kind of understand
• 10:52
  how that works, how it ties into the value, the desirability of the car.
• 10:55
  And I will just have to say that with as much attention
• 10:59
  that there is on those terms.
• 11:01
  And we'll use your term numbers matching here.
• 11:03
  There really is no hard definition for it, and I'll explain that numbers.
• 11:08
  Matching simply means that the date codes on a major part and that the part
• 11:12
  numbers are correct for the year, make, model and build date of the car itself.
• 11:19
  But that doesn't mean the original to that car, and that's
• 11:22
  where it gets a little sticky.
• 11:24
  Original.
• 11:25
  And numbers matching don't necessarily mean the same thing.
• 11:28
  A lot of times numbers matching is perceived as original.
• 11:33
  Lemme give you an example.
• 11:34
  Guy buys a 1967 Corvette.
• 11:36
  It does not have an engine.
• 11:37
  Has no engine in it.
• 11:38
  What does he do?
• 11:39
  He goes out and he says, well, I want to get a date coded, correct part numbered
• 11:44
  engine cylinder heads, intake manifold, distributor carburetor, fill in the blank.
• 11:49
  And he goes out and he researches that.
• 11:50
  And there's companies and places out there that are selling all kinds of stuff, and
• 11:54
  they're actually publishing these numbers out there so you can sort through it.
• 11:56
  When the smoke clears, he's got a numbers matching.
• 11:59
  Engine in his car, but he doesn't have the original engine.
• 12:02
  Now you mentioned about B M W putting the VIN or a derivative of the VIN
• 12:07
  on a variety of different parts.
• 12:09
  Corvettes, other cars have done that too.
• 12:10
  Not to that extreme, but of course oldest trick in the book
• 12:13
  is re stamping those numbers.
• 12:16
  On an engine block, in particular, the stamp pad where they would stamp on at
• 12:20
  the factory, they would go ahead and they would stamp those numbers on there.
• 12:23
  That stamp pad could be cleared off of a number and it can be re stamped.
• 12:26
  So it's not illegal to stamp the VIN on a block.
• 12:29
  It would be illegal or fraud to say that that's the original engine when
• 12:34
  the perpetrator purposely did it.
• 12:36
  He could say this was a restoration block.
• 12:39
  We installed it during the restoration and we've tamped the original VIN on it.
• 12:42
  Full disclosure, how important is it to buy a car that's fully documented,
• 12:47
  ironclad with an ownership chain and a judging chain going back many
• 12:53
  years where in likelihood none of this trickery was performed on?
• 12:57
  I mean, there's a lot of those cars out there thanks to folks like M C a
• 13:01
  Mustang Club of America on that end.
• 13:03
  F C A RA Club of America, Porsche Club of America.
• 13:06
  Bloomington Gold, G T o a A Poky Pontiac Open and Club
• 13:09
  International goes on and on.
• 13:10
  They go a long way to help people understand what might be considered
• 13:14
  to be original, what might consider to be numbers matching.
• 13:17
  There's guidebooks and there's all kinds of things out there to help
• 13:19
  somebody work through all of that.
• 13:22
  But the bottom line is, is original cars with a great pedigree where you
• 13:26
  know the main components are original to the car, are the most valuable
• 13:29
  and sought after cars, doesn't mean a car's not good if it doesn't have it.
• 13:32
  It doesn't mean that at all.
• 13:34
  It just means that investment grade A-list collectors will try to seek out
• 13:39
  the best of the best, and those would be cars with the history, the prominence,
• 13:43
  the documentation that this car is exactly what you think it's, you said
• 13:47
  it doesn't mean it's not a bad car.
• 13:49
  Right.
• 13:49
  Would I be right in assuming too?
• 13:51
  Let's just stick to the Corvette Porsche thing with numbers matching.
• 13:54
  'cause that audience seems to be very, very particular
• 13:57
  about getting numbers matching.
• 13:59
  All original.
• 14:00
  They want the best of the best of the best of the best.
• 14:01
  Yep.
• 14:02
  All true.
• 14:03
  If you are just a young guy, you've always liked Corvette, you've always
• 14:06
  liked Porsche, you just want that car.
• 14:08
  He is been in a wreck, the engine's been replaced.
• 14:10
  It's all kind of.
• 14:12
  Original, it's the right equipment.
• 14:14
  Would you discourage somebody younger with a limited finances who happens upon
• 14:18
  a Corvette or happened upon a Porsche or whatever it might be, and tell them,
• 14:23
  you know, you might wanna save some more nickels and dimes and wait for that
• 14:26
  perfect numbers matching all original car.
• 14:30
  Or would you just say, yeah, that looks like a great car.
• 14:32
  Yeah, it's been wrecked, but you can enjoy it.
• 14:34
  You can get out there and have some fun.
• 14:35
  Very fair.
• 14:36
  You know I said as part of that description, I said a couple
• 14:39
  of key words and that was.
• 14:40
  Investment grade A list look right.
• 14:43
  A vintage Porsche, A vintage Corvette that has an excellent pedigree.
• 14:47
  Well, guess what?
• 14:48
  That's not a driver.
• 14:49
  Yeah, you could maybe drive it on and off of your trailer, drive it in
• 14:53
  and out of the garage, maybe drive it around the block in your neighborhood
• 14:57
  just to exercise it once in a while.
• 14:59
  But that's not a car that you're gonna get in and drive and enjoy.
• 15:02
  A car that doesn't have the original engine, a car that has been repainted.
• 15:05
  There's an unlimited amount of times an engine can be changed,
• 15:08
  A car can be painted, a car can be restored, and they're cheaper.
• 15:11
  Those are the cars that you wanna buy and drive and enjoy.
• 15:15
  And honestly, without any agenda at all, a.
• 15:18
  It's those buyers.
• 15:19
  It's those enthusiasts that are getting out and experiencing what
• 15:22
  it's like to be behind a wheel.
• 15:24
  The controls of these vintage cars, that's where the real enjoyment is.
• 15:27
  The big collectors with the fancy garages, with all their
• 15:30
  cars, with all their displays.
• 15:32
  Hey, that's great.
• 15:32
  They sit there, they bring their friends over, they watch the ball game while
• 15:35
  they're gazing at all the beautiful cars.
• 15:37
  But that represents really a small portion of what the heart
• 15:40
  and soul of car collecting is.
• 15:41
  It's about folks that wanna buy something they can drive and enjoy
• 15:44
  without worrying about it too much.
• 15:46
  Still worry about it, just not as much.
• 15:49
  And there's the flip side of this.
• 15:51
  I only bring it up because there was a program I watched recently where
• 15:54
  somebody actually took a numbers matching C two Stingray convertible, stripped
• 15:59
  it down and turned it into an ev.
• 16:00
  And I think a part of all of us inside.
• 16:03
  Died that day and you're like, why would you do that?
• 16:07
  And to Don's point, take another C two that's been wrecked or that was
• 16:10
  in parts or in shambles, especially if you're gonna strip it down to
• 16:13
  the chassis and start over again.
• 16:15
  It's like, why a numbers matching car?
• 16:17
  Sell that and then buy something else.
• 16:18
  You'll have money left over.
• 16:19
  It also brings up the question of rest mods, and you see a lot
• 16:22
  of those on the auction block as well, tasteful or otherwise.
• 16:25
  What are your thoughts on rest mods?
• 16:27
  Wow, a lot going on there, Eric.
• 16:30
  So what we have learned, I would say over the past maybe 10, 12 years,
• 16:33
  is the popularity and ultimately the acceptance of the rest Mod Pro touring.
• 16:39
  Day Two replica.
• 16:41
  We can even put in there more about that in just a moment where cars are being
• 16:45
  modified to suit, uh, individual's taste.
• 16:48
  Typically, not always, but typically those cars that are being modified, whether
• 16:52
  they're cudas or challengers or chargers or Corvettes or Camaros or Mustangs.
• 16:57
  Pick your flavor.
• 16:58
  Typically they are base model cars.
• 17:01
  Not the high trim levels, not the high horsepower versions,
• 17:04
  not with the original engines.
• 17:05
  And it's somebody taking a car, a project and taking it and
• 17:09
  turning it into something that they want, what their vision is.
• 17:11
  And we've learned a few things about that recently, and that is, If those cars are
• 17:14
  done well, if they're done tastefully, they could bring some pretty big money.
• 17:18
  People say, well, why do RESTOMOD cars bring more money than a say,
• 17:21
  like a restored unmodified car?
• 17:24
  And in certain cases they do.
• 17:25
  And I'll say it's easy cost.
• 17:27
  If you do a Resto mod, you're buying a $25,000 engine, you're
• 17:30
  buying a $10,000 transmission, you're buying a $15,000 chassis,
• 17:34
  you're buying 5,000 worth of breaks.
• 17:36
  The list goes on and on and on and on.
• 17:38
  All the modified parts that you buy, and then the labor to craft and make
• 17:41
  all of that happen versus restoring.
• 17:44
  A car from the 50 60 seventies primarily that are relatively simple
• 17:48
  cars, simple and robust cars to build, lightly modified, but to build
• 17:52
  basically back to stock standards.
• 17:54
  It's a huge part of the collector car market.
• 17:56
  It's a huge part about, of what we see on the auction block.
• 17:59
  Lifelong car guy.
• 18:01
  I'm totally 100% fine with it.
• 18:03
  With the exception of taking cars with their original drive drains and pulling
• 18:08
  those out and modifying the cars to the point where they can't be ever put back
• 18:12
  to stock, I mean, anything is possible.
• 18:14
  When I hear the stories where a guy took a really great car to begin with
• 18:17
  and did a bunch of modifications, It kind of gets me cranked up a little bit.
• 18:21
  If it's a car that was a project and you see it in pictures and it sat in back of
• 18:24
  a barn forever and it was a derelict car ready for the junkyard, and now it's a
• 18:30
  $300,000 Resto mod, that's a showstopper.
• 18:32
  Much in favor of that car getting a second life to a slightly younger demographic, by
• 18:37
  the way, than the folks that are coveting.
• 18:40
  What's the heart of the collector car market?
• 18:42
  50 sixties and seven early seventies cars to a slightly older demographic
• 18:46
  that have a tendency to go more towards.
• 18:48
  Either original cars or just lightly modified cars based on any changes you may
• 18:55
  have seen in audience at these auctions.
• 18:57
  The older generation tends to appreciate the more pure, the more original
• 19:02
  form, more than a modified car.
• 19:05
  I'm guessing you would say that the younger generation is more interested
• 19:08
  in a car that's much more drivable, fuel injection, disc brakes, power steering,
• 19:12
  that kind of stuff, right on you?
• 19:14
  Absolutely.
• 19:15
  Once again, you hit the nail.
• 19:16
  Right on the head.
• 19:18
  And first of all, let's define what a younger buyer is.
• 19:20
  Might we think that a younger buyer is a 20, 30, maybe 40 year old guy?
• 19:24
  Probably not.
• 19:25
  I consider to be in, from what we see in our bid registration
• 19:29
  records is a 50 year old guy is really kind of a younger buyer in.
• 19:34
  The collector vehicle or, yeah, there's some people that are younger than that,
• 19:38
  but that seems to be about the transition point for a lot of us, where hopefully
• 19:43
  your kids are raised, they're out of college, your career path is established,
• 19:48
  or your business is established.
• 19:49
  Hopefully you're at the point in time in your life where you can kind of
• 19:52
  start enjoying the things that you're passionate about, whether it be a summer
• 19:57
  home on a lake somewhere, or an RV to go travel the summers and the state parks.
• 20:02
  Or owning a cool car.
• 20:04
  We all know how strong the collective car market has never been
• 20:07
  stronger, never been more robust.
• 20:09
  The crowds at the auctions, the results of the auctions, our sales price per
• 20:13
  car continue to go up, up, up, up.
• 20:15
  No end in sight for any of that.
• 20:16
  There's a huge excitement.
• 20:18
  There's a huge.
• 20:19
  Demand for cool cars right now doesn't really matter what year or what
• 20:25
  type of car you're talking about.
• 20:26
  It seems like there's an audience for everything out there.
• 20:28
  Frankly, it surprises me, but it also pleases me and it makes me happy that it
• 20:32
  looks like down the road when I'm gone.
• 20:34
  The coveting, collecting, maintaining, driving continues to be something that
• 20:39
  I don't think Americans want to give up.
• 20:41
  And just a final thought to this, you gotta give a shout out to those
• 20:44
  companies out there that are supplying the reproduction of aftermarket
• 20:48
  parts to keep these cars going.
• 20:49
  Without them, this phenomenon would not be happening.
• 20:52
  And the best example that I can think of is the current craze
• 20:55
  over Broncos 15 years ago.
• 20:57
  Yeah, there was, you'd see a Bronco once in a while, but thanks to the
• 21:00
  aftermarket coming on board, making every single part, you could build a
• 21:03
  Bronco out literally from parts outta the parts catalog with no original.
• 21:07
  Yeah.
• 21:07
  Bronco.
• 21:08
  They're pretty simple vehicles.
• 21:09
  C 10 Chevy pickups are another good example of that.
• 21:11
  Corvettes and Mustangs were the first two that started.
• 21:14
  The aftermarket company's been around since the seventies on those vehicles.
• 21:18
  It's these aftermarket companies that allow us to restore these
• 21:21
  cars, modify 'em, and enjoy 'em, and it's giving second and third life.
• 21:26
  To a lot of vehicles, but there's many, many, many.
• 21:29
  This is not a pitch for any of the companies, although National Parts Depot
• 21:32
  sponsor mecu, but they make a ton of stuff and their catalogs are free, by the way.
• 21:36
  But you just gotta give a shout out to all those guys, all the aftermarket folks out
• 21:39
  there doing anything from wiring harnesses to sheet metal to A to Z soup to nuts.
• 21:45
  It's funny, John, you bring up the aftermarket, the reproduction
• 21:47
  parts, et cetera, and in another part of the conversation you brought
• 21:51
  up how big the collective market is right now for collector cars.
• 21:55
  I think they go hand in hand.
• 21:56
  Absolutely.
• 21:57
  The availability of the parts makes it possible for guys who maybe
• 22:01
  have no skills in rebuilding a car.
• 22:04
  Now maybe they've got a shot because they can buy the part.
• 22:07
  Put it on the car and they're pretty much done thanks to companies like
• 22:10
  National Parts Depot, et cetera.
• 22:12
  There's no doubt about it.
• 22:13
  We need them.
• 22:14
  They need us, but we need them as well.
• 22:16
  You know, those of us that have worked on cars, worked on projects, understand
• 22:20
  how critical and important that is, and.
• 22:22
  We're in a really good place right now.
• 22:23
  We're in a really good place with a lot of great options to be able to
• 22:28
  sort of express our desire, whether it be a certain body style, but yet
• 22:32
  we don't want an old school power plant suspension or brake system.
• 22:35
  There's options out there.
• 22:37
  All I ask is, is anybody consider doing it to a project car that needs a lot and
• 22:42
  maybe missing its original drivetrain as opposed, you know, the donor car
• 22:45
  being a really good original car.
• 22:47
  That's not what I like to see.
• 22:49
  I like 'em all.
• 22:50
  That's the bottom line.
• 22:51
  Just choose carefully on your donor listening to this.
• 22:53
  They're inspired.
• 22:54
  They're gonna go to Monterey.
• 22:56
  They wanna sell something or they wanna buy something.
• 22:58
  What would be their first step?
• 22:59
  Well, let's take it from the sell side first.
• 23:01
  You've got a car that you wanna sell.
• 23:03
  I want everybody who might be listening to understand that we don't
• 23:06
  discriminate against low price cards.
• 23:07
  You've got a five or 10,000 car, we'll welcome it.
• 23:10
  Now, you're not gonna see that car run at two o'clock on Saturday
• 23:12
  afternoon, but we're gonna have time and a place to put all collector cars.
• 23:17
  Of all price ranges, we do not discriminate.
• 23:19
  We do not turn anybody away unless you don't have a valid legal title
• 23:25
  and the car must have a VIN tag on it.
• 23:27
  That is a legally affixed legal VIN tag.
• 23:30
  And in today's world of cell phone cameras, we have everybody send
• 23:34
  us a copy on your cell phone of your title and of your VIN tag.
• 23:38
  Before we get too far into the consignment process, we make sure that the car's
• 23:41
  legal for us to sell absolute first step.
• 23:44
  100% of the times is you give Mecom options a call.
• 23:47
  You talk to one of the consignment experts, consignment agent, and you
• 23:50
  discuss the car with that agent to make sure that we're all operating on the
• 23:53
  same page, especially when it comes to a realistic expectation of value.
• 23:58
  Guys, that is a huge point.
• 23:59
  We don't want people to consign a car, either the car doesn't bring what
• 24:03
  they want and or the car doesn't sell.
• 24:05
  We don't want that.
• 24:06
  And it's always a hard balance between being realistic with somebody
• 24:09
  about what we think the car's actually gonna bring, where that
• 24:12
  might be discouraging, the entry.
• 24:14
  And for those folks where we could say, oh sure, let's give it a try.
• 24:17
  Let's get it in.
• 24:18
  And next thing you know, you got all these cars and you haven't
• 24:20
  made the sellers realistic, but you have a lot of cars on the lineup.
• 24:23
  That's a very, very fine line.
• 24:25
  So having that dialogue, Early on with the Lincoln consignment apartment is
• 24:29
  critical to make sure that we think the car is up to the expectations of
• 24:35
  the seller within a certain window.
• 24:37
  I mean, if we think the car's worth 30,000 and a guy thinks
• 24:41
  it's worth a hundred thousand dollars, that's gonna be a problem.
• 24:44
  But if the guy thinks it's worth 50, we think it's worth 45.
• 24:47
  That's not a problem because nobody can call a car within 10 to 20%.
• 24:51
  Either way, the collector car market is not that predictable.
• 24:53
  Even with comparables that people use on our mecom auction website, that's easy
• 24:57
  to use to be able to look at past sales.
• 25:00
  Even with that, the average age of a car, ACOM auction is 50 years old.
• 25:04
  They were all created equal when they were new.
• 25:05
  Whether they're not all equal now.
• 25:07
  Some are stock, some are modified, some original, some are color changes,
• 25:10
  some are engine changes, some aren't.
• 25:12
  There's a thousand different variables and we're well versed in it, and
• 25:15
  we'll counsel objectively with a potential buyer to make sure that
• 25:19
  they understand what our thoughts are.
• 25:22
  The consignment process is pretty straightforward.
• 25:24
  You pay an entry fee to get it in the auction and.
• 25:26
  Fee will vary from say, $500 to $1,500 per car, depending on the value of the
• 25:31
  car, the day it's gonna run, the time it's gonna run time and a place for everything.
• 25:35
  And then if the vehicle does sell, we collect a 10% commission.
• 25:37
  If it doesn't sell, you've only paid the entry fee.
• 25:39
  You take the car home.
• 25:40
  Now, insider pro tip, if you sell a car, no reserve at Acum Auction,
• 25:44
  meaning absolute sale, that commission rate at 10%, it's cut down to 6%.
• 25:48
  You say four points.
• 25:50
  An expensive car, that's a big deal.
• 25:51
  And I'll tell you another tip.
• 25:52
  The vehicles that run across the Mecom auction block at no reserve.
• 25:55
  They get a lot of attention and the more bidders you have on any individual
• 25:59
  lot, and this is true on any type of an auction, the higher the price is gonna be.
• 26:02
  So you're seeing more and more to make them auction.
• 26:04
  You're seeing more and more vehicles being offered at no reserve, but yet
• 26:07
  the bulk of the cars that Consigner wants that protection of a reserve,
• 26:10
  being in control of that price, not having to take less than they want.
• 26:14
  There's no risk at all with it.
• 26:15
  But those no reserve cars stand up and we've seen a big increase.
• 26:19
  You guys as viewers of the show might have noticed that where there's more and more.
• 26:23
  Individual consignments and collections all the time that folks enter no
• 26:27
  reserve and save four points, talking about a couple million dollars
• 26:30
  worth of cars in a collection.
• 26:31
  That's a lot of money.
• 26:32
  The no reserve cars, yes, they're gonna sell because that's that,
• 26:36
  but do you notice those cars generally bring more money than not?
• 26:39
  If you have a reserve of, say, just for a number, $25,000 reserve, 25,000,
• 26:45
  the bidding peters out around $20,000.
• 26:47
  Let's say a car goes in same car, no reserve, it blasts over $25,000.
• 26:52
  Is it better to sell without a reserve?
• 26:54
  Let me just tell you from my personal experience in two ways.
• 26:57
  Number one, from being a Mecu auction customer, I've sold cars and
• 27:01
  motorcycles at mecu and memorabilia.
• 27:03
  We do that too.
• 27:04
  Schwinn Stingray Bikes, as an example, I've sold.
• 27:06
  I've always entered no reserve.
• 27:08
  That's my personal strategy.
• 27:10
  At a reserve auction because I feel like those entries really stand out.
• 27:14
  They get extra attention.
• 27:15
  I tell that to a potential consignor and I advise and I counsel them on that.
• 27:20
  And I would say half of 'em say, man, I agree with you.
• 27:22
  I get it.
• 27:22
  I understand I'm gonna go that way.
• 27:24
  And then there's those say I'm just not comfortable with that.
• 27:26
  Great.
• 27:27
  We'll go ahead and enter with a reserve.
• 27:29
  Just be aware that if you want 25,000 and the high bid is 20,000, Using your
• 27:34
  example, you will have that ability to take that reserve off and sell a car.
• 27:38
  You're not stuck to that number if the timing is right.
• 27:41
  But to give a final point to your question is how do you know?
• 27:45
  Is it the exact same car that runs through within minutes of each other
• 27:48
  to the same bid audience that's not familiar with the other car?
• 27:51
  I don't know how you get too comparables to be.
• 27:54
  I just have to base it on my experience of sitting there calling the action at Mecca
• 27:58
  Margins on TV for the past 16 years for being employed with Mecu since 2 0 0 6.
• 28:03
  Being involved in thousands of decisions from folks, no reserve
• 28:07
  versus reserve collections individual cars doesn't really matter.
• 28:11
  And I will just say this, I'll say this publicly, I've said it before, never
• 28:14
  had anybody come back disappointed that they went the no reserve decision.
• 28:17
  I'm not trying to talk to anybody to no reserve.
• 28:19
  It's a viable option.
• 28:21
  I believe that it works at a reserve auction.
• 28:23
  I believe in it.
• 28:24
  Not for everybody.
• 28:25
  Not everybody wants to take that chance.
• 28:28
  That's why, you know, 75% of all the cars we sell do have a reserve.
• 28:32
  Shifting gears here a little bit.
• 28:33
  You've been in the auction world for quite a little while.
• 28:36
  Is there any one thing or any two things that have really
• 28:39
  shaken up the auction world?
• 28:41
  Any events that have happened, or any changes that have occurred that have
• 28:45
  really made the auction world the oh wow.
• 28:47
  Moment.
• 28:48
  I think it's honestly the visibility.
• 28:50
  It's the fact that collector car auctions and even other automotive shows, the
• 28:55
  build it shows and all that that are so popular right now, all of that has put
• 28:59
  car collecting auctions, all of that.
• 29:02
  It's put that into the public mainstream, and I think it's really helped not only
• 29:06
  mecom auction, other auctions as well.
• 29:09
  And I think it's helped the collector car industry in general as it
• 29:13
  began kind of as entertainment.
• 29:15
  And now it's a way to sort of chronicle and document and promote what
• 29:19
  happens at a collector car auction.
• 29:21
  And as we all know, it's exciting.
• 29:22
  It's stimulating.
• 29:24
  There's the X factor there.
• 29:26
  So people say it's the cars or it's the sound, or it's the
• 29:29
  auctioneer banter, it's the pricing.
• 29:31
  The bottom line is, is it's all of that.
• 29:33
  It's this cocktail that's just magical.
• 29:35
  Now not everybody can pull it off.
• 29:37
  Whether it be on television or not, not everybody can pull that
• 29:40
  off the way that Mecom does.
• 29:42
  I hate to be bragging, but we've got the best auctioneers, the best auction
• 29:45
  team, I think the best TV crew in the business, and I'm not talking about
• 29:49
  me by the way, it all conspires to make people say, man, this is fun.
• 29:53
  This is cool.
• 29:54
  I.
• 29:54
  I wanna be a part of it.
• 29:55
  And it's just snowballed.
• 29:56
  And it's grown.
• 29:57
  And it's grown.
• 29:59
  And as I said earlier, it's not going anywhere.
• 30:01
  This market is strong.
• 30:03
  This market is here to stay.
• 30:04
  Especially maybe as we transition towards a future where we don't
• 30:07
  have as many choices in ice.
• 30:10
  Internal combustion engine choices.
• 30:11
  There's still many segments of the population that have an emotional
• 30:15
  attachment to these vehicles, to these power trains, to these power
• 30:18
  plants, and I don't see it going away.
• 30:20
  I don't see it going away in new vehicles for a long time, and I certainly don't
• 30:24
  see a big CRA or a big transition to alternative power ev in vintage vehicles.
• 30:29
  A w onesies or twosies, they'll be out there from time to time, but.
• 30:33
  Man, we do 35,000 cars a year, and here it is, 2023.
• 30:37
  I'm not seeing it yet.
• 30:38
  You've mentioned several times, John, having been with Mecu for
• 30:41
  nearly 20 years, you've seen cars come and go in the thousands, in
• 30:45
  the tens of thousands at this point.
• 30:47
  But what else?
• 30:48
  Have you seen in the evolution of auctions, and let's talk
• 30:52
  a little bit about RAR and on time and things like that.
• 30:55
  Yes.
• 30:56
  Let's talk about the transition or the addition of what we call absentee bidding,
• 31:02
  which would either be telephone bidding.
• 31:04
  Or internet bidding, or another way, which is actually called proxy bidding, where
• 31:08
  you can in advance let us know what your maximum bid would be on a particular lot.
• 31:13
  Let's say you're not available to attend the auction in person or be
• 31:15
  on the phone or be on a computer.
• 31:17
  You could give us a proxy bid.
• 31:18
  You can also be on the telephone and you can also be on the internet.
• 31:22
  And I'll have to say that we're coming out of what I call the pandemic era.
• 31:25
  Now we have learned and we have transitioned as a company.
• 31:29
  Being known as a very exciting live auction company, but we have improved
• 31:33
  our hardware and software over a period of time to be able to accommodate
• 31:37
  all types of this absentee bidding.
• 31:39
  And it's been huge.
• 31:40
  It has added a tremendous amount to the accessibility about what we do.
• 31:44
  Covering the action on the TV show.
• 31:46
  You see it, we talk about it.
• 31:47
  We put the camera at the internet bidder, we put the camera at the phone, bidders.
• 31:52
  We even have got microphones where you can even hear what they're
• 31:54
  saying to the potential buyer on the other end of the line.
• 31:57
  And we try to cover that and bring everybody into the experience.
• 32:00
  That has been a huge part of our growth and our accessibility.
• 32:03
  And the other part of it is what you mentioned, it's not all about collector
• 32:06
  cars, it's about tractors, it's about motorcycles, it's about road art,
• 32:11
  which that's our trademark name for.
• 32:13
  Anything that might be automotive related from oil cans, dealer displays,
• 32:18
  gas pumps, vintage toolboxes, neon signs, vintage porcelain signs.
• 32:24
  I mean, the list is massive if that market is huge.
• 32:29
  Automotive memorabilia is a phenomenon right now.
• 32:33
  The prices are wild on that stuff, and Mecom Auctions being an auction
• 32:39
  company that specializes in the sale of collector vehicles but is wide
• 32:43
  open for anything that might fit in with that, that might go hand in hand.
• 32:48
  It's gotten to the point where we'll have memorabilia at our auctions.
• 32:53
  We'll have memorabilia.
• 32:55
  Specific days, sometimes at our auctions, our Kissimmee auction and our Indianapolis
• 33:00
  auction, or two in particular that do.
• 33:01
  And then we've got what we call Mecca on time right now where we're
• 33:04
  always running an auction nonstop.
• 33:06
  There's one, one running right now where it might be smaller items.
• 33:10
  It could be like right now there's a big one.
• 33:11
  I just got a email notification where we're doing a bunch of.
• 33:14
  Die cast cars.
• 33:15
  So if you're a die cast car fan, go to become.com, click on online
• 33:19
  and see what they've got out there.
• 33:20
  And I also wanna stress that it's really easy to get signed up as
• 33:22
  a bidder for any of this stuff.
• 33:24
  Whether you want to come to an auction, or whether you want to just
• 33:26
  bid online or bid on the telephone.
• 33:28
  We don't make people jump through hoops.
• 33:30
  We're very trusting in a lot of ways.
• 33:32
  It's very simple and straightforward.
• 33:34
  And once again, you can do it online or you can call our office, talk to somebody
• 33:37
  there and get all your questions answered.
• 33:39
  And we love to hear from people.
• 33:41
  We love to help people.
• 33:42
  And steer them in in the right direction.
• 33:44
  But we never put any pressure.
• 33:46
  We never tell people what doesn't come from our hearts.
• 33:49
  We're too visible.
• 33:50
  We've been in business for too long.
• 33:51
  There's too much at stake to be creative.
• 33:53
  We try to give everybody the best service.
• 33:55
  Bottom line, that we try to treat everybody like we'd
• 33:57
  like to be treated ourself.
• 33:58
  And I just gotta tell you guys, that strategy, once again is
• 34:01
  really paid off for this company.
• 34:03
  We're on one heck of a roll.
• 34:05
  We.
• 34:05
  Blasted through the pandemic era, not everybody was able to hold auctions.
• 34:09
  We did, we pivoted.
• 34:10
  We found a way to do it through masking and social distancing
• 34:14
  and getting special approval from various counties and organizations
• 34:18
  to help us figure out a way to do it.
• 34:20
  And even through the pandemic.
• 34:22
  We've experienced record years after record years.
• 34:26
  We're just, you know, it's incredulous.
• 34:28
  The support for the collector cars and for us as a company that's still providing
• 34:33
  the ability for folks to buy and sell and spectate and enjoy or watch our TV
• 34:38
  show and hopefully enjoy looking at the cars, even if you're not gonna buy one.
• 34:41
  Obviously we encourage that as well.
• 34:43
  Number one rated show on MotorTrend.
• 34:45
  Are you gonna be at Monterey?
• 34:46
  Yes, I will.
• 34:47
  We are doing, uh, TV on Monterey is gonna be Friday and Saturday will be
• 34:51
  10:00 AM to 2:00 PM So that's a short day for us, only four hours each day.
• 34:56
  That will be on MotorTrend TV and on MotorTrend Plus, which is their
• 34:59
  streaming service, by the way.
• 35:01
  And yeah, I'll be there.
• 35:02
  So hopefully we'll get a chance to see you guys.
• 35:04
  Do you have a schedule yet on.
• 35:05
  When you're gonna be there and Eric are, are you going?
• 35:08
  Yeah, we'll be there.
• 35:09
  Mm-hmm.
• 35:09
  I will be in tow.
• 35:10
  We'll be public on the 12th, but yeah, we'll be there literally from
• 35:13
  the 12th to the 21st, so we have a real long haul in front of us.
• 35:17
  Do you know what day you're gonna be at NICU yet?
• 35:18
  What days are you there?
• 35:20
  I remember back in the day, it used to be you started around Wednesday on setup.
• 35:23
  Was that right?
• 35:24
  Or Tuesday on set up, something like that.
• 35:25
  Let's see.
• 35:26
  I look at the schedule.
• 35:26
  The auction will go the 17th, 18th, and 19th.
• 35:29
  That's Thursday through Saturday.
• 35:31
  We're gonna be on tv, the 18th and the 19th, but on Thursday the 17th, that's
• 35:36
  the setup day for the TV side of it.
• 35:39
  The auction will be going on.
• 35:40
  The auction's got a full day of auction there, so I'll be out.
• 35:43
  If you guys are out on Thursday, let's get a chance just to hang out a little bit.
• 35:46
  Sounded good.
• 35:47
  Nobody sells more than Mecu.
• 35:49
  Nobody.
• 35:50
  Mecom Auctions is the world's leader of collector car vintage and antique
• 35:54
  motorcycle and road art sales hosting auctions throughout the United States.
• 35:59
  The company had specialized in the sale of collector cars for more than
• 36:03
  35 years now, offering more than 22,000 lots per year and averaging
• 36:09
  more than one auction per month.
• 36:12
  Mecom Auctions is headquartered in Walworth, Wisconsin, and since 2011
• 36:17
  has been ranked number one in the world with the number of collective cars
• 36:21
  offered at auction, and is host to the world's largest collector car auction
• 36:26
  held annually in Kissimmee, Florida, as well as the largest motorcycle auction
• 36:31
  held annually in Las Vegas, Nevada.
• 36:34
  Mems Road and Mecu on Time.
• 36:36
  Divisions offer a wide variety of collectibles for live and online auctions.
• 36:41
  You can learn more and follow Mecu and their upcoming events@www.meum.com,
• 36:49
  or you can follow them on social at Meum Auction on Facebook at
• 36:54
  Mecom Auctions on Instagram.
• 36:57
  At mecom on Twitter and at Mecom Auction on YouTube.
• 37:08
  If you like what you've heard and want to learn more about gtm, be sure to
• 37:11
  check us out on www.gt motorsports.org.
• 37:15
  You can also find us on Instagram at Grand Tour Motorsports.
• 37:18
  Also, if you want to get involved or have suggestions for future shows.
• 37:22
  You can call or text us at (202) 630-1770 or send us an email at
• 37:28
  crew chief@gtmotorsports.org.
• 37:30
  We'd love to hear from you.
• 37:32
  Hey everybody, crew Chief Eric here.
• 37:35
  We really hope you enjoyed this episode of Break Fix, and we wanted
• 37:38
  to remind you that G T M remains a no annual fees organization, and our goal
• 37:44
  is to continue to bring you quality episodes like this one at no charge.
• 37:49
  As a loyal listener, please consider subscribing to our Patreon for
• 37:52
  bonus and behind the scenes content, extra goodies and G T M swag.
• 37:57
  For as little as $2 and 50 cents a month, you can keep our developers,
• 38:01
  writers, editors, casters, and other volunteers fed on their strict diet of
• 38:06
  fig Newton's, gummy bears, and monster.
• 38:08
  Consider signing up for Patreon today at www.patreon.com/gt motorsports.
• 38:16
  And remember, without fans, supporters, and members like you,
• 38:20
  none of this would be possible.