It’s not often that penny auctions offer cars. In fact, we can probably count with both hands, the number of cars that have been sold in penny auctions over the past year. Not taking into consideration the marketing value of these new cars for penny auctions, we’ve yet to see a penny auction site make a profit on any of their car auctions. The winners have always gotten a deal on a brand new car.
In May of 2009, 1 month after RockyBid opened, they sold a 2010 Honda Insight to one lucky winner in Pennsylvania, the auction end price was only $1.24 (124 bids were placed by all bidders)!
Last November, when Beezid auctioned a Kia Soul they received 2,656 bids, this is much less than what some sites get for iPods and other desirable electronics.
Snaglo’s Jeep Wrangler closed early this month and only received a total of 3,075 bids in addition to the auction seat price.
In September of last year, Swoopo’s Chili Red Mini Cooper Convertible sold for $3,939.36, the winning bidder won with 2,655 bids and paid a total price (bids + auction end price) of $5,532.96 + a $550 delivery charge. 32,828 bids were placed.
Recently opened penny auction ZoogBoo.com has also just started to offer car auctions with a 2010 Camaro SS, the clocks will start when their secret reserve price has been met.
UK penny auction MadBid has auctioned off a couple of cars over the past year, including a Fiat 100 and a Ford Fiesta.
Now Beezid is set to auction their highest priced item yet, and perhaps the hottest car sold in a penny auction, on April 30th, a 2010 Ford Mustang GT.
“BEEZID members have been asking us to put up bigger and more exciting auctions, and we’ve listened! Auctioning off a new 2010 Ford Mustang GT is another example of how BEEZID.com users shop smart, spend less, and have fun. We are looking forward to handing one of our BEEZID bidders the keys to their brand new sports car!” says Max Bohbot, President of Beezid.com.
The Mustang auction will start this Friday, April 30th, 2010 and will run daily from 12:00pm EDT to 3:00am EDT, and will be paused nightly from 3:01am EDT to 11:59am EDT until someone wins.
There’s been some buzz lately in our forum about car auctions, some are discussing whether or not a penny auction site solely for cars would be a good idea. Join in on the discussion! Have you bid on Beezid.com? What have your experiences been with them? Let us know! We value feedback from our readers as this helps all penny auction bidders weed out the scam penny auctions from the legit ones. We can’t wait to talk with you in our penny auction forum.
Photo Credit: http://www.flickr.com/photos/zselosz/ / CC BY-SA 2.0 *This is not the actual car to be sold on Beezid.*
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john January 21, 2011, 3:15 am
“We’ve yet to see a penny auction site make a profit on any of their car auctions”
“In September of last year, Swoopo’s Chili Red Mini Cooper Convertible sold for $3,939.36, the winning bidder won with 2,655 bids and paid a total price (bids + auction end price) of $5,532.96 + a $550 delivery charge. 32,828 bids were placed.”
If each bid on this item was a $.01 (penny) and there are 100 penny’s in a $1 then to figure out how many true bids were placed on the item you would multiple the final auction sold price times 100.
(Example: Final price = $55.70 x 100 = 5,570 bids)
$3939.36 ( Final Price ) x 100= 393,936 bids
Knowing this we can calculate how much was made from the auction by multiplying the total bids by $.60 ( the average amount a person pays per $.01 bid ), this can be more or less depending on the auction site.
393,936 ( bids ) x .60 ( cost per bid ) = $236,361.6
Now add in the amount the person paid for the item:
$236,361.6 + $3,939.36 = $240,300.96
A fully loaded 2010 mini cooper is around $38,000.
$240,300.96 – $38,000 = $202,300.96 ( total profit )
It is true that the person who bid and won the Mini Cooper did in fact get an amazing deal. Although this is rare because bidding can last for extremely long times and some sits use “shill ” bidders which are bidders who work for the site to drive bidding wars. The true winner of penny auctions are those who host them. I do agree you can get great deals or many items for well under retail value and even if the penny auction company loses money on a particular item them make up for it with people continually bidding and losing as well as upgrade memberships which bring in monthly revenue.
d July 14, 2011, 9:07 am
These auctions are investigated and audited by WHAT authority?? The timing of bids must be viewed, certainly the use of the company IP address by the winning bidder on the Camero is NOT a recommendation for this site…