Kruse Auctions

[Steven B.]

I heard from some friends in Fort Wayne and Auburn that a buyer is being sought. Uncertain of the validity but have no reason to doubt.

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Indiana Revokes License of Kruse Auction House
By PAUL STENQUIST

Labor Day auction is an important event in the Auburn, Ind., area. Dave Wolff, assistant to the mayor of Auburn, said in an interview that he had heard that efforts to save the Kruse event were under way and that the Auburn Cord Duesenberg Festival would still take place on Labor Day weekend.


A version of this article appeared in print on June 6, 2010, on page AU2 of the New York edition.

[Tom S.]

Re: Kruse Auctions

I have had enough of the auction scene myself. I am begining to think all of these jokers are dishonest. What did it for me was last year at Bloomington, I had several cars that I was interested in and bidding on bid up. When I questioned the auctioneer I said who bid against me? The answer was that guy over there. I said what guy and each time he had disappeared? I had my son tape it a reviewed it I know who the mystery man was.I am all done. Tom

[William C.]

Re: Kruse Auctions

At many auctions, the auctioneer has the option of locating "phantom" bids under the consigners reserve price to try to stimulate a "real" bid. I believe this is buried somewhere in the fine print of the consignors package, but not necessarily communicated to the prospective buyers.

[Terry M.]

Re: Kruse Auctions

I watch a show about Automobiles on HD Theatre -- some guy in Connecticut who buys and sells at high-end auctions. He frequently mentions that the auctioneer has the option of placing bids up to the consignors reserve. I thought it was standard practice, but I don't go to auctions -- I only learn from TV and the Internet.

[William C.]

Re: Kruse Auctions

Interesting that one of the cars he was involved in was a Cobra that ran thru Mecom's auction, an it was not bid to reserve, He asked who the high bidder was and the answer was "no-one, just fishing up to the reserve" Pretty telling, and like you I expect it is pretty common at a Reserve auction. Barret Jackson has a different twist on the same line, at the "No Reserve" the owner can bid on his own car, but also pays full commision if he buys it back! Auction house wins any way you cut it!

[Harmon C.]

Re: Kruse Auctions

If the seller wants 28k the auction house runs the bid up to 24k and then looks for a real bid of 25k at that point the seller is ask to lower his reserve to 25k and the car is sold. If the car sells for more than the reserve you need two real bidders. It is spelled out in the fine print so it is legal.

[Dick W.]

Re: Kruse Auctions

At many auctions, the auctioneer has the option of locating "phantom" bids under the consigners reserve price to try to stimulate a "real" bid. I believe this is buried somewhere in the fine print of the consignors package, but not necessarily communicated to the prospective buyers.

The Uniform Commercial Code (UCC), which has been adopted by 49 states deals specifically with the practice. By law, in an auction with reserve, the auctioneer may bid up to the point of reserve, at that point he is prohibited by law from running the bid any further.

For more on the rules, UCC 2-238 is the section dealing with auctions.

[Dick W.]

Re: Kruse Auctions

This is not the first time Dean has run afoul of the licensing board. It has not all come out and it will not be pretty when it is all said and done.

Dean Kruse has brothers and nephews in the auction business and they run very straight up and reputable auction firms. I am sure his shady dealings have hurt them.

On the comment that the buyer can bid on his own items, that is only if it has been announced prior to the auction starting. I do know that BJ had one bidder escorted out of the sale and was banned for running the bid up on his own vehicle. Little know fact is that they have a photo of the seller, and when his vehicle comes up, the photo comes up on the screen. They will not knowingly accept a bid from the owner

[Steven C.]

Re: Kruse Auctions

The Uniform Commercial Code (UCC), which has been adopted by 49 states deals specifically with the practice. By law, in an auction with reserve, the auctioneer may bid up to the point of reserve, at that point he is prohibited by law from running the bid any further.

For more on the rules, UCC 2-238 is the section dealing with auctions.

Dick, unless the code has been re-arranged (understanding that Article 9 has been revised) since I was in graduate school, the text you cite within the UCC is located in:
Article 2
Part 3 General Obligation and Construction of a Contract
Section 2-328 (not 238); Sale by Auction

[Dick W.]

Re: Kruse Auctions

Dick, unless the code has been re-arranged (understanding that Article 9 has been revised) since I was in graduate school, the text you cite within the UCC is located in:
Article 2
Part 3 General Obligation and Construction of a Contract
Section 2-328 (not 238); Sale by Auction

Oops! Can get a little dyslexic by the end of the day

[Barry H.]

Re: Kruse Auctions

Tom, Read the "fine print" in the Auction papers. Quote: The Auction (insert your auction company) reserves the right to BID, in the sellers behalf, up to the reserve price. You will find this in most auction papers.
Thus you don't need 2 bidders to make a sale, just you & the house.
Barry Holmes

[Clem Z.]

Re: Kruse Auctions

i always wondered about those so called "phone call bids".

[Tom S.]

Re: Kruse Auctions

Legal or not I have seen some really shady stuff going on the last few years at auctions. I'm done.

[William F.]

Re: Kruse Auctions

Are any of these auctions on the up and up? Who has a good reputation(if any)?

[Tom S.]

Re: Kruse Auctions

None that I know of. I think some are just worse than the others.