Dubai Business News: A global online marketplace founded by a British car dealer has just broken the online-only world record for a car auction, selling a McLaren P1 for an incredible $1,600,888. No other online-only platform for collectible cars has ever achieved a higher sales price.
Unlike traditional auctions, where cars are transported to a central location and bidders attend in person, Collecting Cars has disrupted the industry with an online-only format that has already notched up multiple world records. Cars stay with their owners, and more than 90% of sales happen without a physical viewing. This is made possible by the technology and knowledge behind the platform, which gives bidders a ‘virtual viewing’ of the car in question; supported by more than 150 photos and comprehensive detail on its features and maintenance history.
Bids entered during the online-only auction are legally binding, and Collecting Cars levies a low buyer’s premium of just 5% (+ VAT for UK buyers), which is substantially lower than traditional auction houses that typically charge 12% or more. Furthermore, the buyer’s premium is capped at £5,000 / $5,000 (+ VAT if applicable). On hammer prices above £1m, this means that the buyer’s premium is 0.6% or less.
The world-record car in question was a McLaren P1, one of just 375 examples built, and with only 433 miles from new. An original US-market vehicle; it was collected from the McLaren factory in the UK by its first and only owner. The car had also covered less than 100 miles since its most recent maintenance, which also included full checks of all electrical and battery equipment, at a total cost of more than $7,000.
The Founder and CEO of Collecting Cars, Edward Lovett, said: “For around 60 years, car auctions have traditionally charged substantial commissions and premiums, often taking more than 15% out of the total value of the deal. We knew there was a better approach, and we have developed a world-class online marketplace for sellers and buyers without the unnecessary overheads, which is breaking records.
“This result shows the game-changing power Collecting Cars now wields in the global market, with online-only auctions that are cost-free and hassle-free for the seller, and which represent outstanding value for the buyer. In this case, the buyer’s premium for the winning bidder was just 0.3%.”
The company, which has sold over 4,700 lots since launch, was founded by British car dealer Edward Lovett in 2019. Lovett was born into the family car business, and in more recent years has provided a private brokerage service, finding homes for some of the most sought-after collector cars in the world. Drawing on his significant experience, he saw the opportunity to develop a dedicated online-only platform for iconic, collectible and sporting cars.
As well as its very low premium for buyers, Collecting Cars offers significantly better value for sellers. The detailed photographic presentation and professional descriptions mean their car is showcased in the best possible way, and it is marketed to a huge captive audience of passionate enthusiasts. Furthermore, there is no listing fee, and they receive 100% of the hammer price.
