The collector auto auction industry is at a crossroads, with traditional auction houses slow to embrace the digital transformation that is reshaping how collector cars are bought and sold. Ron Sturgeon, a veteran in the auto auction space, highlights the reluctance of major auction companies like RM Sotheby's and Bonhams to fully commit to online platforms, despite the clear shift in buyer demographics and expectations.
Sturgeon points to Bring a Trailer (BAT) as a pioneer in the digital space, having started in 2007 with a focus on combining a love for cars with the efficiency of online auctions. BAT's success, including the sale of a Mercedes 540k for over $2 million, underscores the potential of online platforms to handle high-value transactions with significantly lower fees than traditional auctions. This model not only benefits sellers and buyers financially but also aligns with the preferences of a new generation of collectors.
Despite the evident advantages, many established auction houses remain skeptical about the viability of online-only sales for high-end collector cars. This hesitation, according to Sturgeon, may cost them dearly as BAT continues to grow its market share, backed by the Hearst Auto Group's recent acquisition and investment. The disparity in transaction costs between traditional auctions and platforms like BAT is stark, with the latter offering a more economical and accessible option for both buyers and sellers.
The industry's slow adaptation to digital trends raises questions about its future competitiveness. With newcomers like Cars and Bids and Supercar Blondie attempting to carve out their niche, the pressure on traditional auction houses to innovate is mounting. However, as Sturgeon notes, the window for serious competitors to challenge BAT's dominance may already be closing. The collector car auction market is ripe for disruption, and those unwilling to adapt risk being left behind in an increasingly digital world.
For more information on the evolving landscape of collector auto auctions, visit https://bringatrailer.com.
