Kirkham alert !!l

[twobjshelbys]

Originally Posted by MOTORHEAD

I just now went back and read how the buyer pays the 5%
Thanks for the explanation,

The method they use is different from the auto auctions but not too different from eBay. The auto auctions (Barrett Jackson, Mecum) you buy the car from the auction house which is a licensed auto dealer in the state in which they are doing business. The seller endorses the title to the auction house and the auction house is the seller of record to the buyer. There is little chance the buyer defaults since the money is collected within a few hours of the hammer falling.

BAT (and eBay) depend on the auction winner being truly motivated. It's almost free to walk away from a eBay auction. BAT makes that tax 5% or 5K. If the buyer gets cold feet his max cost is the 5% number collected by BAT but there is no guarantee that the seller will see the money (or sell the car) since the transaction is between buyer and seller. I don't know if they've had fraud yet, but there certainly is the opportunity for it.