Understanding the Kiko Classic Car Auction

by: John Shapiro

UPDATED FEB 10, 2010.

A Classic Car Auction will happen for the first time at the Cleveland Auto-Rama March 20, 2010 under the scrutiny of classic car owners around the Buckeye state and beyond.

Dick Kiko Jr., chief executive officer of Kiko Auctions based out of Canton Ohio said, “Since Ohio law changed in June of 2008, to allow consignment of classic motor vehicles, specifically classic cars 26 years and older, to be auctioned will are very excited to bring a classic car action as part of the Cleveland AutoRama”.

Kiko is no stranger to the auction block as they’ve been in the auction business since 1945, begun by Russ Kiko, Sr. and who’s 7 sons and numerous family members have kept the business strong, generating over 1200 auctions just last year.

The idea of where to hold the classic car auction came to Kiko when they read about the Cleveland Auto-Rama at the I-X center and thought what a perfect venue combining a huge classic car enthusiast base and easy access for buyers and sellers from all over the Midwest & East not to mention Ohio is 3rd in the nation in collector car title holders.

"We fully expect attendees and sellers from not only Ohio, but Michigan, Pennsylvania and West Virginia too", said Kiko.

Cruisin’ Times sat down with Dick Kiko, Jr. for lunch and an interview. I admit I didn’t get much eating done, but did find out a lot of things that I just didn’t know or had mis-construed and there's a special discount in it for those who read this entire story!  

Cruisin’ Times: This is an exciting time, and we’re glad to be a part of it.

Dick Kiko Jr.: Well first let me say that being involved with you guys and the Cleveland Auto-Rama and our new staff headed up by Mike Patterson and our marketing staff with Heather Marks - I'd say we’ve got the “A” Team at our disposal.

Cruisin’ Times: Thanks, as long as I don't have to cut my hair like Mr. T.

Kiko: What hair?  Just kidding, guess I'm buying the burgers.

Cruisin' Times: First let’s explain the difference between an Absolute auction vs the Reserve.

Kiko: Ours is of the  “absolute” variety and that means, no reserve.  Many people have mixed ideas of what a "no reserve auction" is, but in a nut shell it means every vehicle will sell to the highest bidder, no matter what.  But before you give me that look, John, you have to understand the dynamics of what goes on in one of our auctions and how we make sure the attendees in the bidding area are composed of “quality bidders”.

Secondly understand that every vehicle no matter what year or condition, will always reach it’s “true market value” - not a “pie in the sky value”, as with other auctions.   

Cruisin Times: So it seems that it’s all about getting the right audience?

Kiko: Well, audience might not be the right word.. that’s just a group of on-lookers that will be standing outside the bidders area, what we want are quality bidders and are they passionate about collector cars and if so do those bidders have money!  

Cruisin’ Times: So how do you go about getting those bidders?

Kiko: First, we’re kinda like you, we are also in the publishing business and have our own auction newspaper called the “Auction Press”, obviously nothing the extent of your mag, but the point - it goes to 30,000 people, so we're constantly keeping those readers aware of what we're doing all the time, of course we have our website which is updated frequently too.

Next we invite select bidders who are composed of classic car dealers from all over the U.S. who are obviously looking to replenish their inventory or just looking for something interesting, we keep in touch with auto museum directors who are looking for specific pieces, we're in touch with large private collectors who are trying to find that "missing piece" to their vast collections, individual collectors - both here in the US and oversees, who have called us to find them a specific hot rod, muscle car or antique vehicle and by the way those people are willing to pay top dollar and of course theirs the collector, like you and me who may have sold their previous car and are now looking for a new "toy" or a car nut who's kids have grown up and now he or she wants to get the car that they used to have back in high school". 

Cruisin’ Times: So what you have is a very competitive situation going on.

Kiko: Exactly, and as I look out of the sea of bidders, it’s like a big pot of stew, so to speak, of all those people I just described, and so when a particular car comes up on the auction block our auctioneers literally bring that pot to boil.

And just imagine, as the auction progresses, each car, because of those bidders, actually cause a car to reach or go beyond it’s “true market value”- it' really amazing. 

Cruisin’ Times: ....like cream always rising to the top.

Kiko. You got it John... and of course the more bidders there are, the greater the chance going beyond the “true value”.

Cruisin’ Times: ... and that’s when we see the “bidders war”.

Kiko: ...and judging from many of the cars we have already consigned, I think there's a definite possibility that’s going to happen, I can just feel it!

Cruisin’ Times: Let’s touch on the costs or fees involved.  What’s going to happen, say if I want to become an official bidder?

Kiko: Well, let’s dispel another misconception.  This is not just a couple of guys raising their hands and then dumping out at the last minute.  All bidders are “pre-qualified” for available funds to insure a quick and complication free sale.

First, in order to be a bidder at the Cleveland Auto-Rama you’ve got to establish a line of credit which is $2,000. via a credit card.  Now hold on... obviously if you buy a car, that’s deducted from the total amount and if you don’t buy a car, your credit card isn’t charged.   It’s just a way to establish credit and way to say you’re serious about being there - it's just held in limbo so to speak.

There's also a $50 bidder's registration (which has been reduced from
$150.) required to register for bidder's packet. Bidder's registration includes (2) bidder's circle seating passes and up to (2) additional seating passes can be purchased for $10 per pass with each registered bidder.

So, as you can see, those people in that arena are really, very serious about our auction.

Cruisin’ Times: What about viewing all the cars that are up for auction?

Kiko: First you can jump on our website at KikoClassicCars.com and you can view all the cars as we update them.  But as for the show, when the doors open on Friday afternoon at the Cleveland Auto-Rama, all our cars will be parked inside the Auto-Rama, actually only a row over from where your Cruisin' Times Mini Trade fair and booth is located and these cars can be looked at by anybody, you don't have to pay anything, it's just as if they’re part of the show cars and the same for Saturday up 'til the gavel strikes at 1pm!  At which time only registered "bidders" will be allowed into the bidding arena.   However, spectators (non-bidders) can see the actual auction going on, you just can't sit in the area disignated.

Cruisin’ Times: Well let’s talk about how to become a seller what do we have to do to get a car into the auction?

Kiko: It's real simple, but remember you've got to do this before the auction, but basically there's a $200. sellers registration fee along with a graduated commission fee that’s based on the selling price of your car which starts at 10% and can literally go as low as 5% depending, again on how much your car sells for, the higher the price the more the commission drops.

Cruisin’ Times: Well here comes our burgers, so it’s time to cut the interview short - I’m as serious about eating as you are auctioning cars!  But while I eat... tell 'em about the surprise!

Kiko: Well, seriously John we really appreciate this interview and I'd like to thank you and your readers ahead of time and I hope we've cleared the air about how we operate and what is to be expected at our upcoming auction.   I’d also like to say that I’ll personally offer anyone who calls our office to sell their car, $50 off their sellers registration fee of $200 making it $150.... simply say you want the Cruisin’ Times Magazine Sellers Discount.

And let me again says, thanks to all of you and we look forward to March 19 & 20th for the first Classic Car Auction at the Cleveland Auto-Rama!”

Cruisin’ Times: You just did that 'cause you don’t want to buy dessert!    Hold him to it folks, you know how I like dessert!