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Why the car leaves unsold at auctions and how to enter into negotiations on it?

流 れ ー “nagare” (literally “flow”, “leak”), so are indicated at auctions, those cars that were not sold.

Car was unsold at 480,000 jpy

Often it is necessary to explain why, when our client has a bid for example of 100,000 yen, a car leaves not sold at auction, say for 60,000 yen and how then you can buy this car. Therefore, I decided to write this post. All biddings (except for "urikiri bidding" -bidding without hidden price) are divided into two stages: 1) bidding before the hidden price and 2) bidding after the hidden price. The hidden price on a car is known only by the auction system, which controls the bidding and the seller of the car. Also, the seller himself can control the sale process and press the “urikiri” button (hidden price) when he decides that he is ready to sell the car at the current price.

We, the buyers, find out that the auction reached a hidden price for the “売 切 り” (urikiri) light bulb and we understand that the car will definitely be sold to the one who last presses the joystick. If at the first stage of bidding, that is, at the stage where the “Urikiri” bulb has not yet lit up, there remains one who wants to buy a car, the car leaves not sold. At the first stage of bidding, at least two buyers must participate in the bidding. If we take our example above, if for the sum of 58,000 yen (where the step is 2,000 yen), we last clicked on the joystick and no one else pressed, and the hidden price was say 80,000 yen, then the car will leave unsold for 60,000 yen. That is, we, being one bidder, cannot sit and click until the price reaches the hidden one. It is this moment that is always difficult to explain to customers who resent why a car is not sold for 60,000 yen at a rate of 100,000 yen.

If the car is not sold, then it is possible to enter into negotiations. There are two nuances that you need to pay attention to when we talk about negotiations at the auction (後 商談) - this is the time when you can enter into negotiations and at what price you can enter into negotiations.

The time when you can enter into negotiations. Basically, on most stocks, negotiations can be entered into before the auction closes, on the current trading day. There are auctions where you can enter into negotiations only within an hour after the car has gone unsold for example, auctions of the KCAA group, but there are auctions where the time period is only 30 minutes. There are auctions where they do not give opportunities to enter into negotiations and immediately put up a car at a blitz price. In any case, if you plan to enter into negotiations, you should try to be the first to submit an application, since auctions consider applications not by the highest bidder, but by the order of filing.

The photo above shows an example when a car is not sold and you can enter into negotiations within 10 minutes after the end of the auction.

The price from which bidding begins is set by auction. Some exporting companies establish non-existent rules for their customers to facilitate their work. For example: to enter into negotiations, you must add at least 30,000 yen, to the price for which the car was not sold, etc. The price for which you can enter into negotiations, the company exporter sees on the site or recognizes by call. All auctions of the USS, TAA, CAA group show on their website at what price you can enter into negotiations. For some auctions, such as JU groups, you need to call the auction to find out how much the negotiations start.

An application for negotiations is submitted through the site at some auctions, or by fax at other auctions. The application shall indicate the lot number, car, year, the price at which the buyer wants to purchase a car, the name of the manager and his phone number. Usually, within an hour, sometimes more, an employee of the negotiation department calls back to the phone specified in the application and gives the car at the price indicated in the application, or calls the seller’s price for which they are ready to give the car. If the auction is large, it gives one chance, that is, either you pick up the car at the price indicated by the seller, or you refuse it. With some small auctions it is possible to conduct longer negotiations. I will give an example with the JU CHIBA auction, when we traded in three stages:

The car left was not sold for 120,000 yen. Negotiations began from 140,000 yen. I called the client, told him that I could enter into negotiations and received from him the maximum price of 210,000 yen for which you can buy a car. The client asked me to enter into negotiations from the minimum price, i.e. 140,000 yen. We sent the fax to the auction and after a while, the auction employee called me back and said that the owner of the car wants to give it for 280,000 yen. To which I replied that our client is ready to give only 210,000 yen. The auction employee replied that he would again speak with the seller. A little later, he called back and said that the seller was ready to give the car for 250,000 yen. I replied that I would speak with the client and call back. The client agreed and we took the car. I repeat that this is only possible with small auction houses, since large auctions provide only one chance. Another important nuance is who your company is an exporter, as in large companies, there is no time to monitor all these negotiations and, accordingly, they behave like large auctions: “if it works, it works, but no it doesn't.”

In large companies, there is a separation of the departments of “buyers” (purchasing) and sales managers, and negotiations with the auction are not carried out by your manager, but by buyers, that is, it turns out if a large company does not restrict or generally does not reduce the negotiation process, there will be a lot of red tape. Imagine that the buyer received a call from the auction, then passed the information to the manager, who in turn passed the information to his client and then the reverse process went on. It is even more difficult when the manager is located in, say, a satellite office in Vladivostok. For this reason. large companies restrict the possibility of negotiations by strict and often non-existent rules in the realities of auctions.

Some tricks that buyers should know when entering into auction negotiations. If your manager says that this auction provides one chance to negotiate, then I recommend that you enter not from the starting price of the negotiations, but from the price closer to the price for which you want to buy a car and then you throw the “headache”, as I call this nuance, seller. I will give two examples:

1) Start bidding 100,000 yen, the seller is thinking of selling a car for 150,000 yen, you want to buy a car for 160,000 yen. You enter into negotiations not from 100,000 yen, but from 140,000 yen. When the auction calls the seller on your behalf, he should already be thinking whether to give the car 10,000 yen less or not. Thus. You throw the "headache" on the seller and if he still turns out to be a tough nut, then you still have a chance to buy a car.

2) The same situation with the topic in the same numbers, but you are already entering into negotiations from the start of 100,000 yen. In this case, the seller does not hesitate and immediately calls his price and then it becomes your headache to pick up a car at that price or not.

With small auctions, where phased bidding is possible, I recommend that you always enter into negotiations from the start (if your exporter, of course, allows this) and only then raise the price.

You need to know that when buying a car in negotiations, the auction fee grows. The auction fee is different in each individual group, it also varies from the auction section and the method of purchase. To make it clearer, I’ll just write the approximate figures: buying a car live, participating in the auction house 6,000 yen, buying the same car for negotiations 17,000 yen. But again, the numbers are approximate, because in order to write the exact numbers, it is necessary to explain all the nuances of all auctions.

When a car is not for sale and negotiated, and the owner intends to sell it, the car can be set at a fixed price. At different auctions, such cars are called IPPATSU RAKUSATSU, ONE PRICE, ONE CLICK, but the meaning remains the same, you buy a car at the price indicated on the site. This purchase method deserves a separate post. therefore, we dwell only on this information.

In the photo above, a car that was immediately set at a fixed price after it left unsold.


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