If you have ever attended an auction of any sort, and particularly if you have participated in the bidding, you will be aware just how exciting the process can be.

The problem is avoiding being swept up in the excitement and either bidding beyond your means or else bidding up a product so that you buy something for more than it is worth

Many people go to auctions because they expect to get "deals", and that is why many dealers will attend, hoping to get cars (if it is a car auction) or antiques (if it is an antique auction) at prices that will enable them to resell at a profit.

Their motives might be different from your own and you may run into any one of the following:

• The Shill:
  This person is planted in the crowd, and there may be more than one of them. Their job is to get the ball rolling and to hike the price by making bids to create some competition. They are not interested in purchasing the product on sale. They work either for the person whose object is being auctioned, or they work for the auctioneer.

• The Sheep:
  These are people who, unfortunately, can make an item more expensive to buy than you would like. They attend an auction but are not that knowledgeable about what is on offer. They go for the excitement but get caught up in the bidding. A few people make bids so the "sheep" decide that what is being auctioned must be good because so many others are bidding. They don't really care if they win the bidding - they just want to get involved and have a few moments of adrenaline rush. They are, basically, following the herd and aren't serious participants.

• The Sniper:
  Bidders hate these people with a vengeance! Sniping is a common practice when dealing with on-line auctions as you never have to face other bidders. A "sniper" is someone who comes in at the very last minute (seconds if you are doing on-line bidding) and makes his or her first bid, just when everyone else thinks the bidding is over and the last bidder has, perhaps, made his final and best bid. Provided that the final bid price still makes it worth his while, the"sniper" will come in with his bid.

  This will have a number of effects. It will either beat out the last bid and the "sniper" gets the product, or, in the case of a regular auction, it will start a new round of bidding, with some people being very disgruntled at this last ditch bid. In a real-life auction with a hall full of people, you can be sure that the "sniper" is going to be watched very carefully on future bids in case he pulls the same stunt again. It is not an approved practice at real life auctions, but is acknowledged as an on-line bidding ploy.

  The one advantage of being a "sniper" on-line is that you don't boost the bid price by participating early in the auction. You just bide your time and make a last minute bid hoping that someone else doesn't do the same! There is actually special software that you can purchase that will do the work for you!

• The Dealer:
  This is self explanatory. A dealer is usually there for two reasons. One is to buy merchandise for his store and will bid only up to a level that will ensure his being able to make a profit when the product is resold. The other reason is to look for that hidden gem which is worth a lot more than people think and which will make the dealer a lot of money, if he can buy this treasure at a low price.

  You will often find that dealers are the first ones at private garage sales, even before the official start time, so that they can look for the $20 painting which turns out to be an Old Master. It has happened! Dealers are motivated by profit and won't buy something if the bidding goes too high.

  The exception will be if the dealer is bidding on behalf of a client who has expressed interest in a particular vehicle and is prepared to pay more than the dealer would in order to acquire it.

• Your average Punter:
  These are your regular members of the public who attend auctions to watch what is going on and maybe bid on a few items. They can be swept up in the excitement of the bidding, which may push prices higher than they should be, but if they manage to buy something that appealed, they will go home happy.

  If you are one of these, and are bidding on a vehicle whether at a live auction or on-line, do some research. If you are in the U.S. you can check the web site of Kelley Blue Book which will give you an idea regarding current prices.

  If you do bid on-line and are successful, remember that there may be shipping charges added to your costs, plus, in the case of a vehicle, you might have to travel a long way to collect it, drive it home (don't forget to get it insured before you pick it up), and maybe pay some taxes at the border if you cross from the U.S. to Canada or vice versa.

Happy bidding!

---