CarsBids is the latest penny auction to launch offering cars. The latest, and perhaps only penny auction that’s still around auctioning cars.
On first glance of this new penny auction we’d surmise that something doesn’t seem right with the high volume of cars up for bid including an Audi Q7, Cadillac CTS, Mitsubishi Eclipse, Kia Soul, Ford Edge, Dodge Charger, Toyota Camry, Ford Escape, Ford Edge, Dodge Dart, Yamaha R1, Chevrolet Cobalt, Chevrolet Impala, Uplander, Ford Mustang and a Mazda 6i Sport to name just a few of their current offerings.
But there is a bit of a catch, CarsBids places reserves on each of their items to ensure that they don’t lose a lot of money. Each reserve is specified on each penny auction.
For instance, the reserve on the Audi Q7 is $849.00 – that means the auction end price needs to be at $849.00 BEFORE the Audi actually has a chance of getting sold to the bidder left standing once the auction clock has ran out. That’s 84,900 bids! 84,900 bids, well more like $84891.95 since the auction start price was $8.03.
CarsBids states an 100% refund of all bids if an auction does not meet the reserve amount.
CarsBids – The only place where you can buy a good car for 100$!!!!!!!! http://carsbids.com ”
They stated the following on our forum, “We just opened CARSBIDS.COM and yes we are for real!!!
Besides cas/suvs/pickup trucks we’ll offer also motorcycles and vintage/classic cars!
We are car people from Chicago and we currently partner few Chicago-land car dealerships.”
What they claim in their marketing both on their website and on Twitter, not really, I mean, of course it’s possible, but as a bidder looking to get a deal on a car, well, how probable would this be? First the Q7 auction needs to take in nearly 84,900 bids before anyone actually has a chance to bid, this means they either need a. a high bidding volume, or b. high bidder volume… then of course someone might be able to then win the car for $100 or even 1 bid. You don’t know. We don’t know. That’s just the nature of penny auctions… so to claim that they are the “Only place to get a car for $100″ well that’s not a guarantee.
SO, knowing that a lot of bids have to be placed before you even have a chance to bid and win, would you still do it?
CarsBids does not state much information about their company on the site, and whether they are a dealer or not.
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