Couple of observations:
First he's asking 12.5K, nobody has paid 12.5K. I can ask any amount for a car but it's only worth what someone is willing to pay.
For example, go to ebay and search for 5.7 or 6.1 hemis. You'll find them all day long. Watch a bunch of listings for weeks on end, then record the ACTUAL sale price. I did this for over a year before I bought my 6.1L Hemi. I can tell you that if you pay more than $1500.00 for a truck 5.7, $2500.00 for a car 5.7 or $4,500.00 for a 6.1 you paid too much. Why do I know this, because this is the price these things actually sell for, not what someone is asking. I've seen people ask 7K over and over again for a 6.1L Hemi or 5K for a 5.7, guess what they just sit there. ASKING AND GETTING ARE TWO TOTALLY DIFFERENT THINGS.
Second if the first seller sold the car in a single day for 7.5K that might have been considered a fast sell and good price to buy. Maybe he "gave" it away because "momma needed an operation." The reality is the longer a seller is willing to sit on something the less he has to negotiate. This is a double edged sword, as I saw the same part at Pomona Automotive Swap Meet three thrips in a row. Originally offered for 100.00, I countered with 50.00. He came down to 80.00, I went up to 70.00, but neither would budge. Found a similar part a few isle over, for $60.00. Saw it for 75.00 next trip and finally 50.00 for the trip after that.
Third, this guy may lose his *** on the car. He might sit on the car for a year and have to dump it for 7K and take a 500 dollar loss. He not only would lose the 500 he's also had the opportunity cost of the 7.5K being tied up for a year.
Fourth, the buy it now price may simply be an attempt to "anchor" the price. This is when a buyer or seller throws out a high or low price to fix in the other party's mind a price, thus by throwing out 12.5K it makes buyers who get for 8.5K think they stole it.
Fifth, my wife and I watch "Pawn Stars" all the time and routinely see people take 1/2 for what something is worth. Most people would say, why would anyone do that? Well, for all we know the guy has tried to sell the thing for a year and this is his best offer. Or, Rick will sit on that item for two years before he sells it. Remember, "A bird in the hand..."
Sixth, thanks to ebay, craigslist, and the internet in general the market is far more liquid than it has ever been. For example, I would like a 4 speed center console. If I wanted one badly enough, I could have one on my doorstep in a week, and I wouldn't even have to get off my fat *** to get it. Compare this to even twenty years ago. I would have to spend hours on the phone, or going to swap meets, or reading the recycler every week in the off chance someone would list it for sale. Or buy a copy of Hemmings every month and then spend more time on the phone, and hope the guy on the other end wasn't lying before driving. Thanks to the internet linking buyers and sellers is far easier than it ever has been.
This ease of connecting buyer and seller is beneficial to all of us in the long run. No longer do you have to take some low ball price from someone down the road. You now have what is essentially a nationwide market.
Finally as for ruining the hobby. If you think the price is too high don't buy. Also keep in mind that we are all subject to dad disease. This is the disease where all your pricing remains static. Thus, when I take my kids to the movies I think every time, "When I was a kid a matinee was two bucks, now they want nine bucks for a matinee, what a rip off!" Which you follow up with, "Get off my lawn!!!"
Regards,
Joe Dokes
