Thank you to everyone who contacts me daily, highlighting the popularity of the leaderboard feature in The Daily Vroom. Your feedback is always appreciated!

Today, we welcome a new contender to the leaderboard – Autohunter. Congratulations on joining this competitive field! For those unfamiliar with them, Autohunter is part of the Collector Car Network, which owns Classiccars.com. They have eight auctions ending today, so do take a moment to check them out.

If you’re wondering why your favorite platform is not on the leaderboard, its because they sold less than 5 cars yesterday.

The Launch of Sotheby’s Motorsport: A New Era in Car Auctioning

A groundbreaking joint venture has just roared into the auction space, sparking a whirlwind of curiosity and speculation. RM Sotheby’s and Motorsport Network have joined forces to launch an exciting new car auction platform, Sotheby’s Motorsport. As we gear up to explore this development, let's take a ride through the potential pros and cons of this new platform based on the current information.

The Unprecedented Partnership: Sotheby's and Motorsport Network

This partnership is unique within the auction world. Sotheby's, renowned for running numerous successful physical auctions, is a titan in the space. Just last year at Monterey, they sold a record-breaking $239,258,340 worth of cars in a three-day period. Meanwhile, Motorsport Network, the world's largest independent motorsport racing and automotive media platform, boasts 30 million monthly site visitors. Acquired by the private investment firm GMF Capital in June, Motorsport Network brings a substantial audience to the table. The question remains, will these visitors convert into buyers and sellers? I also wonder why didn’t Sotheby’s just do it on their own? I’m guessing they think the value add of the Motorsport Network will be significant.

Niche Focus: High-End Cars with 17-Digit VINS

In their press release, Sotheby’s Motorsport stated their focus on cars with 17-digit VINS (from 1981 onwards) and priced between $100k-$1m,, which is very specific! This approach is no doubt strategic, aiming to protect Sotheby’s physical auction brand. However, it restricts their market to a specific niche, which might limit their customer base. They do believe it’s a substantial niche. Let’s wait and see…

Superior Service: High Hopes or Reality? ️

The new platform boldly claims that it aims to offer a superior level of service, confidence, and client satisfaction than what is currently provided by many online auction sites. (is that a dig at other platforms or just a fact ) But does it deliver? Let's dig into the specifics:

1. Third-Party Inspection Reports  : Each listing will come with an inspection report by AAG or Lemon Squad, paid for by the auction house. (around $200) While these reports can be helpful, they might not be detailed enough for buyers of high-end cars. Lemon Squad reports are all given out to local people who may or most likely may not have specific experience with higher-end vehicles where certain criteria is needed rather than a general checklist.

   However, the transparency and reassurance offered are certainly a positive step.

2. Financial Capability Verification  : Bidders must verify their financial capability, a requirement common to physical auction houses but not yet seen online. This could deter time-wasters, but it might also deter potential buyers who aren't keen on jumping through extra hoops. Bidders on other platforms can buy a $1m without doing this.

   I find this requirement somewhat perplexing While it's understandable for physical auctions, online auctions might pose a challenge. If I stumble upon a car auction today and it's the last day, the process of uploading bank records may not be feasible within such a short timeframe. Consequently, potential bidders may find it too cumbersome and decide to walk away.

3. Assisting Deals Post-Auction  : This is nice, but every platform worth its weight does this.

4. Open Communication  : The platform allows direct messaging between bidders and sellers. While advantageous for buyers, there's a risk of offline deals which could harm the platform's profits. Will they be monitoring this?

5. Payment Handling : A novel feature in the online space, Sotheby’s Motorsport will take payment for the vehicle, not the seller. This could win trust from both parties, but might pose legal and financial implications down the line??

6. Dealing with Material Misrepresentation ️‍♂️: A standard procedure across auction houses, which is basically a water tight Terms & Conditions and then customer service that will do their best to help resolve any issues. A reassuring service nonetheless.

7. Help with Loans/Liens and Finance  : While helpful, other platforms also offer this service. I assume finance will be some type of affiliate play where each recommendation will lead to a financial reward.

8. Transportation Assistance  : A nice touch, though other platforms integrate this into their dashboard. It might appeal to high-end buyers who prefer a hands-off approach.

9. Professional Photography  : A great offering. Other platforms charge for this service, but Sotheby’s Motorsport covers the cost. (around $100-$150)

The Fee Structure: A Double-Edged Sword?

Sotheby’s Motorsport charges sellers a 2.5% fee capped at $25k and a $199 upfront fee. Buyers face a 5% fee also capped at $25k. While the upfront cost is reasonable, considering it includes professional photography and an inspection, the buyer and seller fees are significantly higher than on other platforms.

For a $500,000 Porsche sold on this site, the seller would pay a total of $12,699. On other platforms, they might pocket the whole $500,000, less a small fee. For a $1m car, the seller would get $975,000 minus the seller fee. It remains to be seen whether high-end car sellers will be deterred by this.

For a buyer paying $500k for a car, you’ll actually be paying $512,500 whereas on other sites it would be around $505,000. Will buyers care enough about the extra thousands not to buy a car??

In Conclusion: A Promising Start or a Rocky Road Ahead? ️

Sotheby’s Motorsport offers a clean, user-friendly site with a unique starting price feature. However, in my opinion (which means nothing ) the platform could have introduced more innovative features and ground-breaking technology to differentiate itself from competitors. ( I have a few ideas )

While they're not aiming for mass-market sales, their focus on a niche could leverage their existing client base from Sotheby's physical auctions. Their success could depend on how well they can convert these clients and attract new ones.

As we watch this new venture rev up its engines, I can only wish them luck and eagerly anticipate the trends and sales that will emerge.