Winning a Porsche at Auction, or not... - Part 3 of a Buying Journey

The decision was made; let’s bid on the 1992 Salvage Porsche 911 RS at auction.  The big question when entering any auction is: “How high are you willing to bid?”

The estimate by the Broad Arrow Auction House was that the RS would sell between $150,000 and $200,000.  With the sale of my 1968 911 and collecting the insurance payoff from the total of my 1986 911 Carrera 3.2, I had $200,000 to spend on one great car. 

The Broad Arrow Monterey 2025 Pre-Sale Estimate for the Salvage Title Porsche 911 RS

But it was still spending $200,000 on a salvage title car.  Was this a smart thing to do?

As I started to analyze the situation to determine my maximum bid, I first had to qualify to bid with Broad Arrow.  This is a fairly simple process of getting a letter from your bank/Investment Advisor stating that you have funds available in the amount that is estimated to purchase the car.  In my case, the letter needed to state that $200,000 in liquid funds were available to make the purchase.  The key is liquid funds because you only have 24 hours to complete the transaction after winning the bid.

The car was going to auction at the Broad Arrow Jet Center Auction in Monterey, California during the famous car week.  I had been to car week many times and had previously bid and won a 1967 Ferrari GTC and a 1973 Porsche 911 RSR at the RM Auctions in Monterey.  This time I decided that I would stay home and bid by phone which I had never done.

Ray Shaffer working the floor during the auction.

While the paperwork and approval proceeded, I started to determine what my maximum bid would be.  I spoke with Ray Shaffer, Auction Specialist at Broad Arrow and various other automotive advisors in my world.  The answer was pretty universal; “We don’t know what a Salvage Title collector car will sell for; you can only go by the Auction House estimate.”

In studying previous auction sales this year, it appeared that the market was soft and that cars were just hitting their low estimate.  My hope was that this would hold true with the 911 RS that I wanted and that I would be able to acquire the car for close to the $150,000 low estimate.  Boy, was I naive. 

I eventually decided on a high bid of $165,000.  There is a 12% buyer’s commission by Broad Arrow so the total price would be $184,800.  This price would keep me within my $200,000 budget.

Here is how phone bidding works.  About 15 minutes before the car comes to the auction block, you receive a call from an auction specialist on the floor of the auction.  In my case it was Caroline. This individual is assigned to advise you of the bids and atmosphere in the room so you can gauge and determine how you should be bidding.  I received the call and confirmed who I was and was authorized to bid for the 1992 Porsche 911 RS, lot 110.

The bidding started at $75,000 (generally the starting bid is half of the low estimate) and rose quickly to $100,000 in $10,000 increments and then to $150,000 without me even having a chance to put a bid on the car. 

Auctioneer rapidly taking bids for the 1992 Porsche 911 RS

Finally, I was able to place my $165,000 bid but it was quickly eclipsed.  The interest was high in the car and I realized that if I wanted the RS I would have to go beyond my $165,000 limit.  The next thing I knew I was bidding $185,000 for the RS. Adding in the buyer’s premium, the total cost would be $207,200, just beyond my budget.

My bid of $185,000 being. handled by Caroline on the left.

My bid stalled the bidding for a bit and I thought I might have it.  Then a $190,000 bid came in and Caroline quickly said to me: “Can you go $200,000?  I think that will win it.”  Well, a $200,000 bid is actually $224,000 at the end of the day.  This was well beyond my budget and agreed upon high bid.  There was no time to think, they needed an answer:  Am I going to spend $200,000 (or at the end of the day $224,000 all-in) for a salvage title car? 

$200,000 bid and Caroline sitting down indicates that I have dropped out of the bidding

I passed. I just couldn’t do it as much as I wanted the car.  My one rule with auctions is to not let the excitement and red mist of “winning at all costs” have you overpaying.

The problem in this situation was that I really wanted the car.  In retrospect, I should have spent the money.  I knew it was a good car and not one that I would sell in my lifetime so why did I care that it had a salvage title.  It would become my kid’s problem in settling the estate when that time came.

I have heard from others, that I made the right decision.  A salvage title car will always be questionable even if the factory put the car back together, but I don’t know, I liked the car.

I had broken my one rule in buying: “Don’t fall so in love with the car, so that you can’t walk away.”

I decided I couldn’t walk away and that the pursuit was now on for a clean title 1992 Porsche 911 RS.  They only sold originally in Europe so let’s go to Europe to find one...

Watch for Part 4 of the Buying Journey.

Sold Result of 1992 Salvage Title Porsche 911 RS

View the Broad Arrow Monterey Jet Center auction of the 1992 Porsche 911 RS on YouTube at:  https://www.youtube.com/watch?v=mL0-9U_vPKI

The auction of the RS starts at 32:45.