Re: [MV] government liquidation (LONG)

From: Neil E. Amrhein (neil@compu-powr.com)
Date: Thu Jan 24 2002 - 05:32:50 PST


Earl is making some good points here. However, human nature is to get
comfortable with what you know, and when that changes, many people resist
it. I think everyone is over-reacting a little.

I work for a company in a transitional state. The old market is slowly going
away, and we are being thrust into new and unknown situations. The GL
employees probably feel like they have been put into a shark tank. My boss
just passed around a short book called "Who Moved My Cheese?", to try and
help make our employees aware of negative behavior and resistance to change.
Has anyone read it? It's worth the hour or so reading time.

Let me start by saying this: As a collector, I have yet to buy anything from
GL. With that said, I wish to post me opinions on the issues brought up by
Earl. He seems to have posted the most comprehensive list. Anyway, my $.02:

>
> 1. I can't inspect the trucks. (no personnel/access on bases)

#1 is a valid gripe. Personal inspection is the only way to go. The dealers
and collectors on this list know their stuff and can determine, best from a
personal inspection, the value (to them) of an auction lot.

> 2. You don't post photos of the trucks. (ok, sometimes right before the
> sale)

#2 is not so valid (with exception to being combined with issue #1). DRMS
hardly EVER posted photos. If they did, it was a treat. However, this wasn't
really necessary because you *could* inspect the lots. As has been said, the
lack of access cannot be blamed solely on GL. Furthermore, I have seen *very
few* lots that did not have a picture posted before the sale actually
opened. For instance, sale #602 doesn't open until 2-4. If you are going to
make a decision based on pictures alone, how long do you want? I am usually
chomping at the bit to see the pictures as well, but if they're posted by
opening date, I've got a few days to make up my mind. That's a long time.
Even under DRMS, the first day of inspection was only a few days before bids
had to be submitted.

> 3. You don't give a description of the trucks. (running, parts missing,
> etc.)
> 4. You don't give any kind of condition. (fair, good, poor)

#3 & #4 -- I don't think their descriptions are any worse than DRMS
descriptions ever were. They do give the condition code from the government
and a picture (which, as we know, is worth a thousand words). Personal
inspection is still the best way to go.

> 5. You won't load, or help load non-running trucks.

#5 is a big problem. If you are charging a 10% buyers premium on everything
you sell, you should be able to afford people and equipment to assist
loading it.

> 6. You set minimum bids of a "THOUSAND DOLLARS" on trucks that
> you won't describe, and I am not allowed to see. Buy the way, a lot
> of trucks straight from the army are not worth a thousand dollars. Only
> after someone has re-installed the cannibalized parts, repaired the
> motors,
> and generally used two or three trucks to build one, do they become
worth
> the few thousand dollars that they sell for retail.

#6 needs more explanation from GL. I noticed the minimum bid requirement on
trucks in AK, but I think the condition code was E7, which ain't all that
bad. We won't know for sure until the pictures are posted. Remember, they
are "buying" this stuff from the government and then selling it to us. Does
anyone know what they pay the government for these trucks?

> 7. You change the bid opening dates at will.

#7 is a problem, as well. This was not a problem under DRMS. If the website
was down, you'd better show up in person or fax/mail a bid quickly. Perhaps
they need a 1-800 number for bidders to call and place bids?

> 8. You remove items for unexplained reasons. (Better deal to a
> brother-in-law?)

#8 is not really valid. I saw many items withdrawn from DRMS sales. DRMS
never gave me a reason for withdrawing any items. They're not making side
deals. Even if they were, the purchaser is probably a member of this list.

> 9. You add other "ambiguous cost" (35.00 buyers premium) What the hell is

> that?

#9 -- This is the change we all hate so much. They are a company interested
in making a profit, not giving deals. I thought it was 10%, where did the
$35 figure come from? Nevertheless, MANY auction houses follow this
practice. 10% buyers premium is pretty standard stuff. Most of us are just
spoiled by DRMS and EBay experiences. Ebay does charge the seller, by the
way, but not 10%.

> 10. You collect taxes that you are NOT authorized to collect.
> 11. You are collecting sales taxes. YUCK!

#10 & #11 -- I'm not sure what unautorized taxes GL collects, but I assume
this refers to the "double taxing" that we've heard about from list members.
I don't know much about this. I would ask this: If you buy a new car outside
of your home state, how do you not get charged that state's tax AND your
home state's tax? Or do you? I have never done this to know. Anyone?

> 12. You provide worthless form 97's. (gov-liq as buyer)
>

#12 -- As David Doyle asked: "Has anyone tried to get a title?" Someone
posted saying they were able to do so.

> I realize yours is a new business, and in so you will have a few
> growing pains. In your case I hope you GROW FAST. For now I will exercise
> the old faithful "BUYER BEWARE" option and "AVOID YOU LIKE THE PLAGUE".

It is a very wise decision to be cautious. Unfortunately, many of our dealer
friends on this list need to buy these trucks to make a living. They have no
choice but to deal with GL. They are the ones who are suffering far worse
than the collectors. They are the ones whose noses will probably get
bloodied the most. Any of us who don't purchase until the process is fined
tuned will be indebted to them.

--Neil



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