Beware of the online auction halo effect

Brief

Back in the day, you wanted to buy a Porsche from guys named Max Hoffman or Al Holbert. They were known in the community for different reasons; Hoffman was an early Porsche booster who influenced factory decisions from New York, while Holbert was a grassroots racer who rose through the ranks of both the motorsports community and the car business, with his dealership receiving allocations of some of the most sought-after new Porsche models. Literally, car purchasing decisions were made based on the proximity to guys who had close relationships with the factory. 

That afterglow was powerful. It got to a point that people saw it a badge of honor to say they owned a Holbert car. To this day, a Holbert license plate frame will net you several hundred bucks on eBay. However, putting too much faith in a vendor or an enthusiast icon can overshadow what is a rotten car at its core. That recently happened with a Range Rover Classic that sold for $25,000 on Bring A Trailer but popped up on the private market after the sale fell through on BaT.

First of all, the sale didn't proceed because a shill bidder ran up multiple auctions and flaked on more than one. That's a story for another day. The seller, a private party that sells a few times each year on BaT, was connected to a private buyer via someone who I can only assume is a casual broker (there are lots of these popping up in the online auction era.) The broker negotiated a sale for the final bid price for the 1995 Range Rover County Classic SWB of $25,000 and the deal closed seemingly after the no-sale on BaT. 

As the screenshots that accompany this article show, the Rover was delivered with numerous issues, not the least of which was an apparent head gasket failure that caused the truck to run hot once it reached highway speed. Apparently, the seller didn't allow the PPI to include on-the-road driving, only a cold start and whatever operational speed was used to move it in and out of a service station bay. Obviously, this should have been a red flag - but for all but the most pessimistic buyers, the BaT effect can instill confidence that is grounded in nothing other than the prolonged existence of the platform.

"It's been around for years and everyone gets a great price - that must mean I'm getting a great car!" Wrong. The platform has always existed to benefit the seller with all liabilities placed on the buyer. Some of you may be saying, "Well, duh - it doesn't matter how you buy a risky enthusiast vehicles, it's your responsibility to assess its condition" - and I would say you're correct. However, when you buy via a forum or a craigslist ad, there's an awareness that you're on your own. It's up to you to trust your gut and your internal moral compass whether the seller is a decent human being. If you're a novice at this or perhaps typically insulated from vehicle purchases, the comment section on BaT can feel like all the validation you need. 

A few things about this particular truck: one, if you watch the videos, it's pretty obvious the seller is going out of his way to keep the temperature gauge out of view. Every driving video has the frame stopping in the middle of the cluster with the fuel gauge visible, but you can't see the temperature gauge on the left side. Also, there was a bit of foreshadowing via a comment that asked why the overflow tank was empty; the seller responded with a nothingburger answer about the fact that he uses Evans brand coolant. Some potential warning signs, for sure, but if you don't have a sixth sense about things like a seller not allowing for an actual test drive during a PPI, those clues will fly over your head. It reminds me of one of my favorite scenes from The Wire, when Commissioner Burrell reminds his cohorts how ruthless the streets can be: "It's Baltimore, gentlemen. The gods will not save you."

By the same token, a BaT auction does not sterilize your purchase. It can go wrong a thousand different ways. And as the unfortunate buyer of this Range Rover found out when he asked his broker to propose a solution with the seller of a $5,000 refund and he'll go away (well short of the $10,000 -$15,000 in estimated repair costs), the seller responded that he had no money and the proceeds were already spent. 

It's enough to make one wish that we still did our deals with the likes of Hoffman and Holbert.