When deciding to sell or buy a car, choosing the right auction platform is crucial. Both online and traditional car auctions offer distinct benefits, but knowing how each operates can help you make the best choice. In this article, we explore the key differences between online and traditional car auction companies, and why we, Trade Classics, stand out as one of the most trusted names in the online auction space.
1. Understanding Car Auction Companies
Car auctions have long been a popular method for buying and selling vehicles, particularly classic and performance cars. With the rise of online auctions, sellers and buyers now have more options than ever before. Both traditional and online auctions have their place in the market, but they differ in how they operate and the value they offer.
2. The Benefits of Online Car Auctions
Online car auctions offer a convenient and far-reaching platform for sellers and buyers alike. One of the key advantages of online auctions is the broad audience they can attract. Unlike traditional auctions, which are often limited to a specific geographic location, online platforms can reach a global audience, increasing the visibility of your vehicle. The top online auctions are us of course (Trade Classics) and Pistonheads, Collecting Cars, Car and Classic and Bonhams Cars Online – the big five. Of course there are other online players like Evoke Classics, TOCCA and Paddle Up, however, they simply don’t have the reach that we and other top / more established companies do – without the audience / reach it means sale rates and bidding will be much lower, meaning lower chances of sale.
Here at Trade Classics, we’re one of the longest-standing and most trusted online auction companies, started in 2017 and offer unparalleled reach. We go beyond our own platform / 72k followers by advertising auctions across major online channels such as eBay, Pistonheads, Motors.co.uk, Cazoo, Facebook, and Instagram. This cross-platform promotion ensures that your car is seen by a diverse and engaged audience, maximising its exposure and ultimately increasing the chances of a successful sale.
3. Traditional Car Auction Houses
Traditional car auction houses remain a staple in the automotive world. With live bidding and in-person inspections, they offer a more interactive and hands-on experience for buyers and sellers. These auctions are popular with enthusiasts who enjoy the excitement of live events. However, traditional auctions can be more localised, and the logistics of transporting a vehicle to the auction house can add extra time and cost. The top traditional car auction companies are: Mathewsons, Morris Leslie, Anglia Car Auctions, SWVA Poole, Barons, DVCA, Brightwells, Classic Car Auctions, HH Classics, Iconic Auctioneers (Silverstone), Historics Brooklands and Bonhams.
4. Fees and Commissions: A Key Comparison
One of the most important factors when choosing an auction platform is understanding the fees and commissions involved. Traditional auction houses often charge substantial fees, with commission rates reaching up to 30% of the final sale price. This can significantly reduce the amount of money a seller takes home from the sale – for example Iconic Auctioneers take 24% of the sale, meaning far less money for the seller and way more expensive for the buyer.
In contrast, we offer one of the lowest commission structures in the industry. With a flat 7.2% commission (6% + VAT = 7.2% inc VAT), sellers retain more of the final sale price. This makes us a cost-effective option for those looking to maximise their return on the sale of their vehicle.
5. Why Trade Classics is a Trusted Auction Platform
We have built a reputation as one of the most trusted and reliable online auction companies. Specialising in classic and performance vehicles, we have been at the forefront of the online auction industry for years, providing a seamless and professional experience for both buyers and sellers.
One of the standout features we have is our extensive advertising network. No other online auction company advertises across as many platforms, ensuring that each auction reaches the widest possible audience. By promoting auctions on eBay, Pistonheads, Motors.co.uk, Cazoo, Facebook, and Instagram, we maximise visibility, offering sellers the best chance of achieving a successful sale at a fair price.
For sellers, this combination of broad reach and low commissions makes us a smart choice. Whether you’re selling a rare classic or a modern performance vehicle, we provides the support, exposure, and expertise needed to get the best result.
Conclusion
Choosing between online and traditional car auction companies depends on your specific needs as a buyer or seller. Online platforms offer unmatched reach and cost-effective fees, making them an attractive option for sellers looking to retain more of their sale’s value. Traditional auction houses provide a more in-person experience, but with much higher commissions and geographic limitations.
Please see the comparison chart we complied below – it shows you what each auction company takes in fees / commissions based on a buyer paying an all-in price of £50,000 for a vehicle.
**Compiled September 2024**
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