MARKET LEADERBOARD

💰 The figures shared below don’t count any other sales such as car seats, memorabilia etc..

I only include websites that have sold 5+ cars in the chart below. Which means Hagerty, Hemmings and many others did not sell 5 cars yesterday!

Two days ago, the online auction scene saw an impressive surge with total sales exceeding $7 million, distributed across seven distinct platforms. However, the excitement tapered off yesterday as sales dipped to around $5.5 million, a figure that, while significant, aligns with the lower end of typical Tuesday earnings in this sector. Remarkably, nearly $4 million of these sales were solely attributed to the platform BaT.

After a remarkable 10-day streak of high-value transactions, Collecting Cars, another notable player in the market, experienced a quieter day without any sales hitting the six-figure mark. This pause highlights their recent streak of lucrative deals. In contrast, Car & Classic, a fellow UK-based company, capitalized on the day with two sales (one highlighted below) each breaking into six figures. This industry is fast-paced, leaving no room for rest!

Clicking on the image will lead you directly to the listing. An interesting aspect of yesterday's top 5 sales is their distribution across three distinct auction platforms

This 2023 Chevrolet Corvette Z06 Coupe 3LZ, sold yesterday for $149,000 on BaT, is a striking example of value retention in the current market.

I had an intriguing discussion last night about the merits of paying above the MSRP for a car. In the case of this specific vehicle, it's challenging to purchase one directly from a dealer, and BaT appears to be the go-to place to find it.

An analysis of this year's sales reveals that all transactions have been above MSRP. However, comparing these sales is complex due to the different options each car has, which affect the sale price.

For instance, this car had an MSRP of $142,000, and its sale price yesterday was $149,000. This outcome is favorable for the seller who enjoyed the car for six months and then managed to recoup his investment.

Speaking of the six-month period, if the car isn't held for at least that long,(which it was) the warranty becomes void, which makes the seller's decision even more astute.

From the buyer's perspective, this purchase was a good deal. Market prices have decreased compared to a month ago, so paying just $7,000 over MSRP seems reasonable. In this case, both the seller and the buyer seem to have made beneficial decisions.

In a marketplace where innovation is key, Randy Nonnenberg and Bring a Trailer (BaT) stand out as the epitome of pioneering spirit and market leadership. Embodying the essence of Oscar Wilde's observation that "Imitation is the sincerest form of flattery that mediocrity can pay to greatness," BaT's influence is evident in the emerging trend of similar auction sites. This phenomenon underscores the profound impact Randy's vision has had on the online car auction industry.

In our exclusive interview, we dive into Randy's journey of transforming BaT from a concept into a trendsetting platform. We discuss how his leadership has not only driven BaT to the forefront of the industry but also inspired a wave of competitors, validating BaT's innovative approach. Randy shares insights into the challenges and successes that have shaped BaT's path, highlighting the importance of community engagement, transparency, and maintaining high-quality standards.

We also explore BaT's strategy in an evolving automotive landscape, marked by technological advancements and shifting consumer preferences. Randy's foresight in steering BaT through these changes, while keeping its core ethos intact, reveals much about his visionary approach.

Join us in this engaging dialogue, where we uncover the dynamics of Randy Nonnenberg's leadership and how his entrepreneurial spirit continues to propel Bring a Trailer forward in the competitive world of car auctions.

TDV: Hi Randy, can you walk us through a typical day for you at Bring a Trailer? 

RN: The two things I try to keep consistent every day are browsing BaT listings where I interact with the BaT Community in the comments, and interacting with our remote team through virtual chat groups, Zoom calls, and direct messages. The team, and their ability to push the product forward, are what really gets me out of bed in the morning. The remainder of my days are highly variable, from travels to connect with partners to prepping cars for events to mapping out future opportunities. I'm typically in our San Francisco office two or three days per week when I am in town.  

TDV: Taking a step back in time, when you first launched Bring a Trailer, what was the original vision and plan for the platform? As you look at the immense growth and success BaT has achieved over the years, does it surprise you? Were there specific moments, challenges, or "wobbles" that you faced along the way? How did you navigate through them, and were any of these challenges pivotal in shaping BaT's journey to its current industry-leading position?

RN: I think the entire industry has been surprised by the huge appetite for a community-driven auction marketplace like BaT. My co-founder and I thought it was needed, but we had no idea whether it would work, and the auctions that everyone thinks of as the current BaT were not even dreamed up until 4-5 years into the project. So anybody who says they knew BaT would be a success at our inception in 2007 is crazy! There was no real business concept at the beginning, it was just a system to help me forward my ideas and internet car research to others. Revenue opportunities were tripped across later on. We have faced plenty of challenges along the way, from tech strains to hiring challenges, to skepticism and criticism from industry veterans. When you invent something new, some will cheer for you and some will cheer against you. Both groups kept us motivated.

TDV: With BaT consistently selling over 600+ vehicles a week, it's clear you're at the forefront of the online car auction industry. As the market leader, how closely do you monitor emerging platforms and competitors? Are there specific threats or challenges you foresee that could potentially challenge BaT's position as the industry's number one?

RN: I used to follow all the copycat sites obsessively, but at this point with over fifty of them having come or gone it would be pretty exhausting to monitor them all. I still love scanning the internet for cars for sale, so I browse other auctions weekly to see which cars they are getting and to keep tabs. In general, I'm much less threatened by them than I was five years ago when they first started popping up. As for market leadership, the threats depend on how you define leadership. If you are talking solely about volume, then someone could far surpass us tomorrow with a robotic AI website that blasts out 3000 auctions. That wouldn't be leadership in my view, as our goal is for leadership in community vetting and transparency. Those are what lead to positive seller and buyer outcomes, which is why we started BaT Exclusive listings in the first place, and we have chosen to grow at a more conservative pace to keep the BaT Community engaged. Our team leads in those areas and that is what has led to BaT's growth... more like a locomotive than a rocketship. I've loved seeing the market embrace such positive attributes.  

TDV: BaT has earned a reputation for being selective in the cars it chooses to auction, ensuring a curated experience for its users. As you look towards growth targets, such as achieving 150/200/250 listings per day, do you anticipate adjusting your selection criteria to incorporate some of the vehicles you might previously have turned down? Alternatively, do you see the growth in auction listings coming primarily from attracting new customers who might not yet be familiar with BaT?

RN: We don't plan on changing our selection criteria much. No growth aspirations should make us accept bad cars or bad sellers. There has long been many opinions of what constitutes a 'BaT car.' We love challenging the norms and keeping people guessing with the BaT Daily Email and what they see every day on the site. We've been amazed at the number of new users that sign up every single day here 15 years into our operation. Daily users added is at an all time high, and sometimes we wonder where they are all coming from! But that is the impact of giving buyers and sellers positive outcomes... they tell their friends and it multiplies.

TDV: The past six months have witnessed a decline in prices in the industry, which has led to a drop in sell-through rates as sellers maintain high expectations. Yet, BaT consistently stands out with a high sell-through rate despite these market challenges. How has BaT managed to maintain this consistency? Is a high sell-through rate the primary metric you emphasize, or are there other key performance indicators you prioritize to ensure BaT's success in a shifting landscape?

RN: Our curation team does an amazing job of balancing quality and sale rate while accepting as many customers as possible. It is the same team we have had in that role since the earliest days of auctions and they are aces. In my view, sellers and buyers should know that the chances are in their favor that their item will sell, so rates down in the 30% and 40% range are really problematic. But at the same time a super high sale rate in the 90% range means you are likely being too restrictive and turning away interesting listings. It is a balance.

TDV: The recent launch of the BaT App has been a fantastic addition, and it's evident that many users find immense value in it. As technology continues to shape our experiences, what other technological trends do you foresee influencing both the BaT customer base and the automotive auction industry as a whole? Are there specific innovations or tech shifts on the horizon that you're particularly excited about or that you believe will be game-changers for the industry?

RN: Yes, we are really excited about the app and the positive feedback about it. Thank you for the kind words! This first version is really the foundation that we wanted to make public to learn from, and I'm most excited about the community-oriented features that we can add to it in the coming months. It will also aid with navigation and alerts now that there are so many great listings on BaT at any given time. As for tech, we are excited to see how listings and community discussions evolve and how more information about the vehicles can be displayed within the listing.

TDV: While BaT and other online platforms have seen an uptick in high-value sales, this year there's been a notable rarity with only one sale surpassing the $2 million mark on BaT. How do you interpret this in the broader context of the physical vs. online auction landscape? Given the traditional dominance of physical auction houses for these ultra-high-value transactions, do you envision online platforms, including BaT, further penetrating this segment in the future? Or do you believe there are inherent advantages to the physical auction format for such sales?

RN: I think our capped fee model makes a ton of sense for the 7-figure cars, and we saw a lot of that activity in 2022. With the 2023 economic and car market slowdown, there are a lot of those cars being held instead of transacted as much as last year. They will flow again eventually, and consumers always tend to gravitate towards lower fee models.

TDV: Currently, BaT has a commendable fee structure with a cap set at $5k, which many appreciate for its clarity and fairness. However, as the market and the platform evolve, there's always room for reassessment. While no buyer necessarily wishes for an increase, some I've spoken to express understanding if adjustments were to be made, provided they remain reasonable. Do you foresee any potential changes to the current fee structure, particularly with regard to the capped amount, in the near future? How do you strike a balance between ensuring BaT's sustainability and growth while maintaining a fee structure that's palatable to your user base?

RN: You are right, we are still charging the same fees that we debuted in 2014. Not many businesses can say that! We are debating the right way to evolve it, but as you can see from our track record, we tend to do that only very conservatively. We've liked adding a la carte pro photos and white glove services along the way as options with no pressure. If and when we make any changes, we definitely want it to still be a great value for the users. We get the feedback that right now it is almost too good to be true given the BaT Community engagement and audience reach.

TDV:  In my writings for The Daily Vroom, I've often highlighted a unique aspect of BaT's approach: when a sale doesn't finalize through the platform, BaT connects the seller with the highest bidder, and I surmise that many of these introductions lead to successful transactions off the platform. It appears there might be a revenue opportunity being left on the table. Given that many buyers I've interacted with seem open to a fee for such facilitation, have you considered introducing a mechanism to assist and benefit from these post-auction deals? How do you view this potential avenue for added value and revenue for BaT?

RN: We've considered many of these things over the years. You are good at zeroing in on interesting aspects of the business! We have had sellers that insist on sending us fees after an RNM listing finds them a buyer. In the early days we never wanted to insist on it because it felt too much like other auctions and car dealers that would hound a seller for a fee that they may or may not have deserved. We wanted to be very different from that. But as years have marched on it has become clear that many deals happen right after BaT listings end in RNM. There is an opportunity to be involved in some way there that feels genuinely fair, I think. if done right, I think it would be accepted or even appreciated.

TDV: Back in June 2020 when Hearst acquired BaT, there was significant speculation and concern among enthusiasts about potential inundation of ads and a change in the core ethos of BaT. Yet, in reality, BaT has flourished, expanding its offerings with new features, content, and events. Looking back, do you ever feel that perhaps the decision to sell came too early given the trajectory BaT was on? Can you shed some light on the value Hearst has added to BaT's operations? And when it comes to ideation and execution, how is the decision-making process structured? Does Hearst have the final say, or does the original BaT team maintain autonomy in steering the platform's direction?

RN: We had a few dynamics that meant that 2020 was the right time, and many think that Hearst owns the whole thing but my early team and I are still partial owners and it has been a great outcome for all of us. It might have been great if we held on longer, but it easily could have gone less great as well, so we feel fortunate it went this way. Hearst has helped us recruit and manage a much larger staff, build out our engineering capabilities, and reach new audiences across their brands. They are the majority owner, so they could flex that power if they wanted, but they have been a smart partner and have let us maintain consistency like avoiding invasive advertising, as you mentioned. It works well and they have great ethics, which is rare in the cases of many of my friends who have gone through similar acquisitions.

TDV: BaT has fostered a vibrant community of enthusiasts who, beyond the auctions, are avid consumers of content related to the automotive world. Many questions I've fielded revolve around the potential for BaT to further enrich the community experience. Given the vast pool of passionate followers, is there a plan in place to provide more in-depth content, perhaps diving deeper into the histories, intricacies, and narratives behind the cars? How do you envision further tapping into this opportunity to engage, educate, and enthrall the BaT community with compelling content moving forward?

RN: There are lots of opportunities here, but I really like our in-person events even more than digital content. With our product on a screen, the experiential component of driving and wrencing and connecting face-to-face is a super important element that can be missing. My favorite thing we do is our Alumni Gatherings where we get to see the cars and the people in person. It is also a great place to produce great content, if that is your thing! You should come to one in 2024. The cars are from the website but all visitors are welcome.

TDV: As the automotive landscape undergoes significant shifts, have you observed any pronounced trends in the types of cars being listed on BaT, particularly with the increasing focus on sustainability and electric vehicles? Furthermore, how do you envision the impact of upcoming government legislations on electric vehicles influencing the BaT marketplace and the choices of its community in the near future?

RN: I love watching the car industry, as I worked for BMW for 10 years directly after college during some of their best years. I think that electric cars can be great fun and we have a category for them on BaT. It is crazy what early Tesla roadsters are bringing on BaT. I bought my first one a few months ago to test out the whole experience. We used it to shuttle visitors at our most recent Alumni Gathering at Laguna Seca. Nobody complained about being chauffeured in it! I think electro conversions and collectible EVs are here to stay, but I don't think the full switch to electric will happen as soon as some people and governments think. I'm a huge fan of freedom and I hope we get to drive our fun cars for many years to come.

TDV: As BaT continues to evolve and set benchmarks in the online car auction space, many are curious about the road ahead. Can you share some insights into what the next 12 months might look like for BaT? And looking even further, do you have a broader vision or specific milestones you're aiming to achieve in the years to come? How do you see BaT further distinguishing itself and innovating in the ever-evolving automotive auction landscape?

RN: Even as more and more listings are added to BaT, there is still ever growing demand. The main challenge as site volume increases in the future will be to keep each listing special and discoverable. We have some exciting ways to do that and it will be a continual evolution. We aren't standing still and as long as we maintain the transparency and community we are famous for, the road ahead will be very exciting.

Thanks for your interest in BaT and this industry! You remind me of when I was a one-man-show at BaT staying up nights to get the BaT Email out on time. It was stressful but great fun. I wish you success. Thanks for your focus on transparency among these auctions... it is not as common as it should be!