Old School
Pierre Hedary
 
StarTech 2015
Sorting Out an Auction Purchase
 
For those of us with the means but not lots of leisure time, buying a classic Mercedes-Benz at auction can seem like a great way to satisfy our desire for ownership without going through the time and trouble of restoration. Auctions help take the uncertainty out of the transaction, as they handle the difficulties and present the car at a forum where buyers can choose what they pay. If price exceeds budget, simply stop bidding: No buyer has to deal with a shady, obnoxious seller.
 
Auctions are ‘as is, where is’
 
Unfortunately, many people who buy at auction presume they are going to get a perfect, no-needs car for the premium paid. Nowhere in any of the auction company’s paperwork is this implied, but when buyers pay a premium price for a car, they feel entitled to perfection.
 
What the paperwork does say is that the car is offered “as is, where is,” barring a major discrepancy in identification that the auction company didn’t detect when it approved the consignor’s vehicle for sale. There is rarely an opportunity for a test drive or mechanical inspection. Unscrupulous sellers know that as long as a car is cosmetically presentable, they can get away with offering a car with mechanical issues that will usually go undetected until after the hammer falls and a buyer has signed the paperwork on the auctioneer’s clipboard.
 
What to do after the sale    
 
If one of these possibly poorly sorted beauty queens follows you home, your first step is to figure out what you’ve got, and then decide whether you want to sort it out or just sell it at a loss and move on.
 
After signing the delivery driver’s receipt, work always begins with an overall inspection. Make sure the brakes work, lights illuminate, fluids are filled and the engine runs for 10 minutes without stalling or overheating. Shut the engine off and see if it restarts (a typical Mercedes problem). Check tires and suspension, and then, if it passes, go for a test drive; on that test drive, record every symptom or near symptom you experience, even if you’re not sure what it means.
 
When you’re sure the brakes work after some rigorous tests, wind the car out and see if it overheats. Mercedes vehicles with 6-cylinder engines are prone to overheating with the a/c on, especially in stop-and-go traffic and engine speeds exceeding 4,000 rpm.
 
Once your drive is done, look the car over and make a list of less important items that don’t check out. Always prioritize: mechanical items over cosmetic and comfort. It’s very common for inexperienced car parents to overemphasize appearance over substance. For example: it’s tempting to repair a broken radio when fresh ignition components are needed.
 
What’s it going to cost?      
 
When bringing this mystery mobile to your mechanic (very few people who buy at auction are likely to sort a car themselves), make sure the mechanic is qualified; use customer referrals. Then sit down and discuss your vision and intention for the car. While you need to know a shop’s hourly rate, it’s most important that you establish its capability.
 
Don’t try to force a servicer into a commitment, especially by asking for a “ball park” estimate over the phone; mechanics are fixing other people’s mistakes and short cuts. Finding a mechanic you can trust, who displays a holistic understanding of all the car’s mechanical systems, is more likely to result in a better car in the end. What is it going to cost?
 
How much should you be prepared to spend to sort out a car? The reality is that what a car generally costs to check and, if needed, repair the typical issues that afflict that particular model varies from model to model and has little to do with the market price for that car in excellent condition.
 
These cars are labor intensive and good technicians deserve to be paid for the time they spend sorting out what started as an impulse buy. They should return a car to you that is without serious excuses and will drive under all kinds of conditions: That’s why you chose a Mercedes in the first place, right?
 
Below is a table illustrating the market value for the average (Condition 3) car sold at auction, and the likely total cost to sort it out completely, based on conversations with other shop owners in our MBCA community.
 
What’s noticeable in this table is that while the price range for cars in an average Condition 3 vary considerably, from $3,500 to nearly 10 times that, the typical cost of sorting out a car doesn’t vary nearly as much, since most of the work is common to all Mercedes-Benz models, and shop rates don’t vary, regardless of the underlying collectability of that particular model.
 
A realistic plan
 
The good news is that you don’t need to do everything at once. With the garagiste’s list of all the things that are known to be wrong, or might be wrong based on secondary symptoms, you can work out a plan for a “rolling restoration,” getting to know and enjoy the car in the process while smoothing the hits to your budget.
Make sure you both agree to fix any safety issues the car may have first, such as problematical brakes or a starter. Any other major concerns, such as an iffy timing chain that might leave you stranded beside the road, or worse, should be dealt with at the same time. Next you can tackle the mechanical issues that take away from the pleasure of driving, such as shocks, springs, and motor mounts, but aren’t potentially terminal.
 
Finally, move on to the comfort, convenience and cosmetic items, such as upholstery, air conditioning and wood finish.
 
Communication is required here, and it’s always best for owner and shop owner to confer regularly to see where the project is going. The shop owner should be able to give you a preliminary estimate for the time and cost for next step in the process. You do need to keep in mind that sometimes the estimate will be for the cost of opening up the patient car to determine what’s wrong, with a firm estimate for complete repairs only possible once that’s been determined.
 
Doing it the right way
 
With this advice in mind, you might want to avoid an auction buy in the first place.
 
Learning from the experience of most classic-car collectors, it’s always better to buy from a private individual where you have the opportunity to inspect the car thoroughly before making a commitment. Fly in, test drive the car, have it inspected and then negotiate the price based on its needs.
 
After a buy, keep in mind that additional unknowns are going to surface, so don’t be upset if this is the case:  Remember that happiness is a state of mind based largely on expectations, rather than a byproduct of material goods. And of course, when you look at the car you’ve bought, focus on the car’s strengths and the characteristics that attracted you to Mercedes-Benz and this particular model in the first place.
 
Average Costs to Sort Out Desirable Mercedes-Benz Automobiles
Model                 Years           Price Range              Typical Sorting Costs    Time Estimate
280SL                  1968-1971       $55,000-$75,000     $10,000-$30,000        12 months       
280SE/SEL 4.5   1972                   $7,000-$15,000     $15,000-$25,000       6-8 months      
450SL                  1972–1980        $7,000-$12,000     $10,000-$15,000       3-5 months      
300D/240D         1982–1985       $3,500-$10,000       $8,000-$16,000     6-12 months      
190SL                  1956–1963    $75,000-$120,000     $25,000-$40,000   12-18 months      
280SE 3.5 cabrio 1971            $250,000-$300,000     $30,000-$40,000         12 months      
280SE 3.5 coupe 1971                $60,000-$90,000     $30,000-$40,000         12 months
190E 2.3-16        1985–1987        $5,000-$10,000       $7,000-$15,000         12 months
 
Condition 3 Car at Auction
Shop Rate of $90/hour
Data based on experience of garagistes in MBCA community