I emailed Bat the following to try to understand why so many consignment sales by dealers were labeled "Private Party Sale" by Bat. This was precipitated by the recent BaT auctions of the E3 3.0Si and the E9 CSL
BaT,
I'm a long time BaTer...since 2011, before it was even an auction site. I've thoroughly enjoyed it almost every day for the past 12 years. A truly excellent concept and an even better execution. I have sold a few cars using BaT. The process to sell was well defined and documented. My auction specialists were always helpful and kept in constant contact with me throughout the submission process and the auction itself. BaT has been a great source of entertainment for me over the years.
I have one suggestion. There seem to be more and more consignment auctions that are identified as "Private Party" auctions. Some state in the listing "selling on behalf of the owner", but not all. Sometimes it comes out in the conversation, sometimes it remains unknown. Here are two recent examples...
https://bringatrailer.com/listing/1975-bmw-3-3li/
https://e9coupe.com/forum/threads/1974-3-0csl-on-bat.44154/
I think the use of the term Private Party for these is not open and honest. It leads potential buyers to believe that the owner drafted the description and will be answering the questions and addressing potential buyer concerns. A dealer is a dealer no matter if he holds the title or not. In fact, there are probably more consignment dealers in the collector car market than dealers who are on the title.
Thanks for considering this change. I think it would help show that BaT always does the right thing.
This was BaT's response...
Hi Dick,
Appreciate you reaching out to share this feedback. It's always great to hear from longtime BaT followers like yourself and we're glad to hear that you've had good selling experiences on the site.
To clarify, a private party designation in the essentials box is simply meant to indicate that the vehicle in question is being sold/handled as a literal private party transaction. Keep in mind that anyone can sell as a private party (even a dealership) as long as they have the vehicle titled in their name (or in the name of their business). That said, anyone selling as a private party must have the appropriate documentation to do so, and we do require them to provide legal documentation that shows that the vehicle is titled in their (or their business's) name. As with any private party transaction, we also require that the post auction payment be made directly to the titleholder - this is especially important for circumstances in which a seller is listing a vehicle on behalf of the owner, and if that is the case, it's typically something we call out in the first paragraph.
While the laws and regulations vary slightly from state to state, dealers, however, generally have the ability to sell a vehicle (and accept payment for a vehicle) without having to title the vehicle in their (or their business's) name. Ownership is usually transferred by something called a "dealer reassignment form". If a seller is selling as a dealer, they must clearly indicate that they are doing so and they also must present a valid retail dealer's license - we generally do not allow dealers to sell on a wholesale dealer's license.
With all of that in mind, we always encourage bidders to contact sellers with any specific questions regarding the title status, payment details, or specific ownership questions. As a car enthusiast like yourself knows, ownership history is a really important consideration before buying any vehicle, so it's important that bidders establish a level of comfort prior to bidding.
I hope this helps shed some light on our approach here, but thanks again for sharing your concerns and we appreciate the continued support!
Best Regards,
So, I'm a little confused (as usual).
It seems that BaT explained why dealers that are on the title to the vehicle can list it as a private party sale...and maybe also those whose states allow the use of a "dealer reassignment form?" This isn't what I asked and raises even more red flags for me.
It doesn't explain why a dealers that have been consigned cars by an owner to sell also often list them as Private Party Sales.
I need some help understanding BaT's answer, and responding in a way that from a hobbiest standpoint, a dealer is a dealer is a dealer.
Thanks!
BaT,
I'm a long time BaTer...since 2011, before it was even an auction site. I've thoroughly enjoyed it almost every day for the past 12 years. A truly excellent concept and an even better execution. I have sold a few cars using BaT. The process to sell was well defined and documented. My auction specialists were always helpful and kept in constant contact with me throughout the submission process and the auction itself. BaT has been a great source of entertainment for me over the years.
I have one suggestion. There seem to be more and more consignment auctions that are identified as "Private Party" auctions. Some state in the listing "selling on behalf of the owner", but not all. Sometimes it comes out in the conversation, sometimes it remains unknown. Here are two recent examples...
https://bringatrailer.com/listing/1975-bmw-3-3li/
https://e9coupe.com/forum/threads/1974-3-0csl-on-bat.44154/
I think the use of the term Private Party for these is not open and honest. It leads potential buyers to believe that the owner drafted the description and will be answering the questions and addressing potential buyer concerns. A dealer is a dealer no matter if he holds the title or not. In fact, there are probably more consignment dealers in the collector car market than dealers who are on the title.
Thanks for considering this change. I think it would help show that BaT always does the right thing.
This was BaT's response...
Hi Dick,
Appreciate you reaching out to share this feedback. It's always great to hear from longtime BaT followers like yourself and we're glad to hear that you've had good selling experiences on the site.
To clarify, a private party designation in the essentials box is simply meant to indicate that the vehicle in question is being sold/handled as a literal private party transaction. Keep in mind that anyone can sell as a private party (even a dealership) as long as they have the vehicle titled in their name (or in the name of their business). That said, anyone selling as a private party must have the appropriate documentation to do so, and we do require them to provide legal documentation that shows that the vehicle is titled in their (or their business's) name. As with any private party transaction, we also require that the post auction payment be made directly to the titleholder - this is especially important for circumstances in which a seller is listing a vehicle on behalf of the owner, and if that is the case, it's typically something we call out in the first paragraph.
While the laws and regulations vary slightly from state to state, dealers, however, generally have the ability to sell a vehicle (and accept payment for a vehicle) without having to title the vehicle in their (or their business's) name. Ownership is usually transferred by something called a "dealer reassignment form". If a seller is selling as a dealer, they must clearly indicate that they are doing so and they also must present a valid retail dealer's license - we generally do not allow dealers to sell on a wholesale dealer's license.
With all of that in mind, we always encourage bidders to contact sellers with any specific questions regarding the title status, payment details, or specific ownership questions. As a car enthusiast like yourself knows, ownership history is a really important consideration before buying any vehicle, so it's important that bidders establish a level of comfort prior to bidding.
I hope this helps shed some light on our approach here, but thanks again for sharing your concerns and we appreciate the continued support!
Best Regards,
So, I'm a little confused (as usual).
It seems that BaT explained why dealers that are on the title to the vehicle can list it as a private party sale...and maybe also those whose states allow the use of a "dealer reassignment form?" This isn't what I asked and raises even more red flags for me.
It doesn't explain why a dealers that have been consigned cars by an owner to sell also often list them as Private Party Sales.
I need some help understanding BaT's answer, and responding in a way that from a hobbiest standpoint, a dealer is a dealer is a dealer.
Thanks!