Nebraska BMW Dealer Tries to Back Out of eBay Auction

If you’re an auto dealer, and you let your salespeople list vehicles on eBay, perhaps they should know a little bit about how the auction site works before they start accepting bids.

Husker BMW of Lincoln, Nebraska listed a brand new BMW M3 Sedan on the site at $60,000. They were obviously hoping that their listing would attract a frenzy of bidders who would in turn push the price into the six figure range - not uncommon for this vehicle.

Well, their hopes were dashed when a California man ended up winning the auction for the listed price - $60,000.

Now here comes the awful part - the dealer won’t honor the auction price.

Shortly after the end of the auction, Ken Tanisaka, the auction winner, received a call Husker BMW telling him the auction was a mistake, and that he wouldn’t be allowed to purchase the car at that price.

The dealership argument that the listing was a mistake doesn’t hold much water, however. The auction history shows that the lister changed the “Buy It Now” price twice during the listing’s run. This shows that the auction was being actively managed by the dealership - no mistake here.

By listing the car on eBay and allowing this man to bid on it, they have effectively entered into a contract with him for his purchase of the vehicle. If the tables were turned, and he won the car for - oh, let’s say $85,000, and then tried to back out of the deal, Husker would probably cry foul and threaten legal action.

Much of this drama has unfolded on an Internet message board, M3Post.com. Read through the thread over there for more details and opinions. As of Sunday evening (March 23rd), it appears that the buyer may initiate legal action against Husker BMW, to force them to honor their end of the deal.

What do you think, was the dealership in the wrong? Should they honor their auction’s price?

Let them know what you think: sales@huskerautogroup.com

Or call them at: (866) 520-7950

6 comments ↓

#1 dc boy on 03.24.08 at 3:13 pm

The dealership is very much in the wrong here, and I hope they get their butt handed to them.

I will call them here in an hour or so when they open and let them know I think they’ve made a huge mistake.

Talk about the lost potential for good PR here - they could have honored the deal and imagine what good press they would have received.

#2 Quilla on 03.24.08 at 3:15 pm

EBay’s terms are very clear here - he won the auction, fair and square. Sorry, Husker (or should I say Huckster) BMW - you’re in the wrong.

I hear that MSNBC might pick this up. If it gets off the blogosphere and onto national news, it’s all over for the dealer.

#3 danny on 03.24.08 at 3:16 pm

Want to make sure you’ll sell your item at a predefined price? Set a reserve! Morons.

They’re legally obligated to sell the car to him now.

I sent them an e-mail - hope they lose their franchise over this.

#4 BuzzLightyear on 03.28.08 at 12:45 am

He’s getting the car! As of this afternoon, I think almost all the i’s were dotted and t’s were crossed. Check the link to M3Post - he’ll probably have the title in hand by tomorrow.

#5 poppa on 03.28.08 at 12:48 am

Yup, he will have it soon. Internet anger FTW!!

#6 BigBadJohn on 03.28.08 at 12:48 am

Cool how many sites have picked up on this, the viral effect was amazing.

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