I couldn’t do a newsletter without giving you the daily leaderboard on the key metrics. It was a much better day for Collecting Cars selling 17 cars. Let’s see if they can keep this upward momentum.

PCarMarket, Hemmings and others didn’t make the leaderboard as they all sold less than 5 cars. That being said PCarMarket sold the top 2 most expensive cars of the day, highlighted below, congrats

 Poll Results: In a yesterday’s poll conducted among you our newsletter readers, we asked the question, "Do you think it's misleading for Hagerty to show the buyer premium in the final sale price?" I was overwhelmed by an unprecedented influx of responses to the poll. In fact I’ve never had so many votes/comments and emails.

The results are that with 66.67% of participants voting "Yes" at the time of writing. This poll has garnered an unprecedented level of engagement, showcasing the strong opinions surrounding this topic.

Buyer Premium Impact on Insurance Premiums and Seller Perception:

Many readers have pointed out the potential impact on insurance premiums when the sale price includes the buyer premium. As Hagerty is the largest collector car insurance company, this connection raises concerns about a conflict of interests? Higher ‘shown’ sold prices = higher premiums.

Additionally, showcasing higher sale prices may influence potential sellers' perceptions, making them more inclined to list their cars with platforms that appear to achieve higher prices.

 The Case of Physical Auction Houses: Some readers highlighted an important distinction between physical auction houses and online platforms. Traditional auction houses, such as RM Sotheby's and Barrett-Jackson, typically include the buyer premium in their sold prices. This practice has been long-established in the physical auction world. However, with the rise of online auctions, different norms and practices have emerged.

Hagerty's Current Practice: To be fair, Hagerty does show the sale price and the buyer premium when you click on the sold price. However, this approach doesn't fully address the wider concerns regarding insurance implications and inflated sale prices. It is essential to foster transparency in auction practices, ensuring that buyers and sellers have access to accurate information and a fair understanding of the total costs involved.

 Buyer Premium Variability: It's important to acknowledge that buyer premiums are not always fixed percentages. In the online auction world, there can be room for negotiation and flexibility.

Some platforms may even offer incentives or discounts to secure a deal. (it happens even with the biggest platforms). By automatically including the buyer premium in the sale price, platforms may not accurately reflect the actual total cost for the buyer. This variability should be taken into account when considering the transparency of auction practices.

 In My Opinion: I strongly believe that transparency should be the core value of any online auction platform. While traditional auction houses, such as RM Sotheby's and Barrett-Jackson, include the buyer premium in their sold prices, the online market has developed its own norms.

Platforms like Hemmings, for instance, provide an all-inclusive price but specify that it includes the buyer's fee. (do you know how long it took me to find a sold listing??? A post for another day )

This transparency is commendable and provides a clear understanding of the total cost. However, in the case of Hagerty, the current practice of showing the buyer premium only when you click on the sold price doesn't alleviate the concerns raised. It is my suggestion that if they truly want to show the higher price including the buyer premium, they should display it as a separate line item (without having to click anything extra) stating the sale price and the buyer premium separately.

 Conclusion: The debate surrounding Hagerty's approach to including the buyer premium in the sale price is multifaceted. It raises concerns about insurance implications, inflated sale prices, and the overall transparency of auction practices. While there are arguments for and against this practice, one thing remains clear: transparency and accurate representation of costs are vital to maintaining trust and integrity in the online auction industry.

Below are just a few of the many many viewpoints we received..