The Digital Transformation Lag in Collector Auto Auctions

The collector auto auction industry is at a crossroads, with traditional auction houses lagging in the adoption of digital platforms, a delay that could cost them dearly as online competitors like Bring a Trailer (BAT) gain momentum. Ron Sturgeon, a veteran in the auto auction space, highlights the reluctance of major auction companies such as RM Sotheby's and Bonhams to fully embrace online auctions, despite the shifting demographics of car collectors towards younger, tech-savvy buyers.

Sturgeon points out that the hesitation to invest in digital platforms, which could cost between $2 to $5 million for a world-class site, is a significant barrier. This reluctance is contrasted with the success of BAT, which started in 2007 and has since become a formidable force in the online auction space, selling around 150 cars daily. The recent sale of a Mercedes 540k for over $2 million on BAT, with minimal fees compared to traditional auctions, underscores the efficiency and appeal of online platforms.

The article also mentions other newcomers to the online auction space, such as Cars and Bids and Supercar Blondie, but notes their limited impact compared to BAT. The acquisition of BAT by the Hearst Auto Group signals a strong commitment to dominating the online collector car auction market, backed by significant financial resources.

Sturgeon warns that traditional auction houses risk being left behind if they do not quickly adapt to the digital transformation sweeping the industry. The success of BAT demonstrates that high-value cars can indeed sell online, challenging the notion that live auctions are the only viable platform for such transactions. The article concludes by questioning who will step up to compete with BAT, as the window for serious competitors to enter the market may already be closing.