On the website, the price you see includes the buyers fee so subtract 10-12% from the price you see to get the actual block sale price.So im curious how BJ works. Using this bronco for an example.
- What does the seller end up with? (as far as $ with the sale price of 161k)
-What fees does it cost to run a vehicle through?
-Is there a reserve?
- With the new tax law, I assume you will have to figure in an income tax now too?
- On-site Buyer's Premium: 10%
- Absentee Buyer's Premium: 12%
- On-site Automobilia Buyer's Premium: 15%
- Absentee Automobilia Buyer's Premium: 17%
As a seller I believe the commission is 8% plus you pay $900-1400 to consign your vehicle. You send in the info and they write you back with a day and time slot. They wanted to put mine in a Wednesday slot and after 2 emails they said they would do Friday morning for $900.
Nearly everything is no reserve. I've been to the Scottsdale auction 18 years in a row and cant think of more than 3-4 cars that had a reserve. If you don't like the current bid, you can bid on your car and just pay the commissions to get it back. I've seen that happen a lot.
The guy I talked to that sold a Bronco for $100K did not get taxed on his sale so I dont know when the IRS steps in.
Barrett Jackson is taking home 18% on every vehicle so they made $35M in commissions alone. Then factor in food, drinks, ticket sales and vendor booth fees. I imagine they make $40-50M over the 7 day auction.