Selling car at eBay – The luck factor

Before returning to Karachi, I sold my car at eBay. The entire process was a very interesting experience and it raised many questions and answers in my mind regarding luck, planning, strategy, and chance. I shall try my best to explain my experience in words and present the same questions before my readers for an open discussion.

In the first week of December 2004, I posted the advertisement for my 1993 Toyota Camry at various bulletin boards around my school, as well as on the web. Unfortunately, I did not get any response. As a result I decided to sell my car through ebay. I had been looking at similar auctions and had a very good idea of how to sell cars and what price to expect. So I posted my car with best possible description and pictures. I was optimistic that I would be able to sell the car at a decent price. Being the smart-ass I am, I used the reserve price feature to make sure I get my least expected money from the auction. The reserve price was $2250, and the market value of the car was $2750. Now all I had to do was answer the questions from the bidders and wait patiently for the seven-day auction to end and watch my car go, and pray.

If you have watched ebay auctions enough, you probably know that most auctions get most bids during the last day, specifically during the last couple of hours. I have won many auctions in past by bidding in the last minute and I have lost many items just because somebody else bid higher than me moments before the auction ended and I couldnt do anything.

Two days before the end of my car auction, the bid had reached upto $1925. I was getting plenty of feedback and things were looking good. I was hoping that the bidding will easily end above my reserved price and I shall be able to take home a hefty check.

After two days, I was highly surprised when the auction ended only at $1925. That’s right. There wasnt a single bid in the last two days, which is very unusual for ebay. The highest bidder did not meet my reseve price, and I was unable to sell the car. My first attempt to sell the car had failed miserably, despite all my research, planning and experience with ebay.

I was short of time, so I decided to re-list my car at ebay, but this time for 3 days only, and without a reserve a price. I was ready to get rid of the car at any price as I didnt have enough time to negotiate for a better deal. I was a little fed up of this whole thing.

This auction was ending on the christmas night, and that’s why I wasnt hoping for much, becuase most people spend christmas day with their families and friends, exchanging gifts, and not bidding for cars on ebay. Or so I thought. I knew my timing was not so good but I had no other option as I was flying for Karachi in a week.

Once again, I was really surprised, and delighted to see my car go at $2325. Higher than my previous closing price and beating my previous reserve price! The bid had increased from $1825 to $2325 during the last 12 hours. Not only I was glad but I was also confused and amazed by it.

Once calmed down, I started thinking about it. Why the car was not sold at first attempt? Was the reserve price too high? Was the description not attractive enough? Were the pictures of the car not so illustrative? All these factores were under my control and I did my best in them, yet the car did not sell. Was it just because I was unlucky at that time? No one bid for the car during the last two days. I could not control that. This is how auctions work. You can only hope that someone will bid for the item you are selling. So in the end the luck factor plays a major role even if your description and everything else is perfect.

My second attampt had better results than my first. Even though I used almost same description and exact same pictures for my car, I was able to sell the car at a higher price. And my fear that due to chirstmas there wont be too many bids was proved to be baseless. Again, was I just luckier during my second attempt? Did the timing had to do anything with it? Did the winning bidder miss my previous auction? Or did he start looking for a car after I re-listed the item? Was the fact that it was a 3-day auction attracted more bidders? One has to study ebay auctions in greater detail to be able to answer those questions. Till then I would keep on thinking that I was just unlucky to not sell my car at first time.