How open bidding and proxy bidding works for a car with a reserve price

When you bid on a car with a reserve price, if your proxy bid at least meets the reserve, it will automatically increase to meet that price.

Example: ABC Motors lists a car with a starting bid of $1,000 and a reserve of $10,000.00. Emily logs in and bids $1,500. The current system bid increases to $1,500 but the reserve isn’t met. If nobody else places a bid, Emily does not win the auction.

Peter places a proxy bid of $15000. The current bid increases to $10,000 (the amount of the reserve) and the reserve is met. If nobody else places a bid, Peter wins the item at the price of $10,000.

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Posted on: August 10, 2014