Market Intelligence
One step forward. Almost two steps back
The article discusses the decrease in online auction sales at RM Sotheby's and the reasons behind it, such as competition from specialist sites, oversupply, and a lack of interest in online auctions compared to physical ones. The author analyzes the results of the last two auctions, where only around half of the lots were sold and the turnover was significantly reduced. The average price per car sold was also limited due to the absence of million-dollar cars. The article highlights specific cars from the auctions, such as a 2015 Ferrari 458 Speciale A and a 1965 Griffith Series 200, that sold within their estimated price range, and a 1972 Intermeccanica Indra Coupé that sold for less than its estimate. The author questions whether RM Sotheby's is losing its grip on the competitive and unprofitable sector of online auctions.
It would appear that the strength of RM Sotheby’s in online auctions is slowly diminishing. There are undoubtedly a number of factors at play here: on the one hand, the significant competition from specialist sites (the most recent: The Market, which has been incorporated into Bonhams), then probably an excess of supply – let’s face it: it’s difficult to organise one auction per month full of fantastic cars – as well as the fact that many hope that, starting from Amelia Island at the end of the month, we will return to organizing physical auctions for the most prestigious events. The question arises as to whether RM is relinquishing its grip on this sector, which is as competitive as it is unprofitable: the big million-dollar cars do not exist here and the commissions are reduced to a minimum.
The last two auctions were held on 17-25th March and 21-29th April, and we can hardly say the results were exciting. During the first event, out of 90 lots on offer, just 52 were sold (57.78%) while in April, out of 60 lots on offer, just 33 (55%) changed hands with 14 offered without reserve. A useful lifesaver... Turnover suffered the same fate: in March it was €4,363,670 ($5,259,597) out of a potential €7,486,400 ($9,023,470) while the most recent auction, with an estimated €4,001,500 ($4.823,068), only managed to generate a “paltry” €1,823,000 ($2,197,588), all of which translates to 58.28% and 45.56% respectively.
