Anyone have experience with Gateway Classic Cars?

Jcpstrat

Jcpstrat

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My white ’74 is for sale on this forum but I got a call yesterday from “Gateway Classics Cars” and they said they wanted my car for their showroom in Louisville, Ky, USA. I’m only about an hour away from Louisville but personally have never heard of them. I’ve already had to deal with multiple car scams out of Las Vegas but GCC seems different, even though they’re basically a consignment business.

Some internet research came up with quite a few dissatisfied buyers, mainly due to having problems with the car after buying it and getting little or no help from GCC, but I can see that happening and think checking it out really good before buying is the buyers responsibility. Didn’t find much info. from sellers other than GCC wanting them to lower the price after awhile.

Thought I’d check in here to see if anyone has dealt with them and what you’re overall impression/experience was! Thanks
 
Yes RD I'm presently working on stripping all the rest of the paint off the body of the '67. Stripping hood turned out to be horrible as there were 3 different colors of paint on it and no telling how many actual layers. I didn't make much progress before giving up and have taken the rear valance panel to a media blasting place to see how that looks and then may have them do the hood. I'll be checking out this Gateway Classic Car place very carefully before making any moves with them. Take care.
 
My wife was born in Louisville and we go visit the family there a couple of times a year. Trying to go there in a week for the Derby.

From what I know of them, they take your car on consignment for 90 days. You bring in the car, they inspect the car and establish a market price. If you agree with the price you pay them a consignment/marketing fee ( no idea what it is ). They guarantee you the established market price and then they mark it up and try to sell it ( hence the reason they seem overpriced ). If they don't sell it in 90 days they have you pick it up and your out the initial fee.

If I get down to derby, I'll have to go by the showroom and check it out even though it's in Indiana!
 
Thanks smackYYZ for the info. ... you've filled in some of the missing pieces. Right now the consignment fee is $195 for 90 days in showroom. I have asked them a bunch of questions but haven't got a response yet. From my initial contact it sounded like I just would give them my minimum I would take for the car and then they would mark it up like you said. One of my questions was "What happens after 90 days if it hasn't sold?", so you've answered that question. I've also asked to see a copy of the contract I would be signing if I went with them and a few other ?'s. I'll be glad to share their response if anyone is interested.

Good luck with the derby and hope you've got great weather for that. Been planning to go to the Keenland races here in Lexington but weather so far has been lousy this week and just 2 more days left. :(
 
Here's a follow-up with the answers I got from Gateway Classic Cars. Most of this sounds good to me except for their answer to my question #5, which is exactly why I'm really looking for feedback from anyone who has dealt with them. If I sign a contract, legally it appears they don't have to do anything but they say they will. Will they really do something they aren't legally bound to do anything? Am I being too skeptical?

Q1: Can you send a copy of the contract? They did attach a copy of contract.

Q2: When is the $195 due?

A2: The $195 would be due as the final step before leaving the car with us, as in, after we evaluate the car, and finalize your in pocket price and you have agreed on everything and ready to leave car with us to sell.

Q3: What happens after 90 days?

A3: After 90 days you have a few options. You could renew for another 90 days or you can come pick the car up after day 90 with no other obligations, fees or questions asked. With this option, you have a 7 day grace period to arrange pickup method.

Q4: Am I responsible for getting the car to your showroom?

A4: Yes, you are responsible for travel to our showroom with the car. If you need shipping assistance, we work with local and national shippers that offer discounted rates for customers coming to us, I could always get you a quote.

Q5: If car is damaged while in your possession, how is repair handled?

A5: If the car is damaged in our possession, again a few things could happen. For one, if it is our fault, we will take care of it, in our 17 years we have never had a claim of damage to our cars. But, what you will see in our contract is that we aren’t liable for damages, but that’s only because we cant insure these vehicles because we do not own them. But as stated, we will take care of anything that may happen.

Q6: Will you provide a list of the places you advertise the car? They did attach a list of places they will advertise the car.

A6: Ive attached a file of our current marketing website list.

Q7:What options/requirements are available to the buyer for checking the car out?

A7: If a buyer wants to check out a car, a salesman is required, we lock doors and put do not touch signs on all of our cars, so if assistance is needed, the salesmen will be there to open doors pop hoods etc and be there with buyer while car is being looked at. Also, only way we offer test drives is after a $1000 down payment and purchase contract is already written out by the buyer. Then, the salesmen is the one who drives the car at low speed around our parking lot to make sure major components of car are in working order.
 
Hey John. You are correct. They would have no obligation to make things right if the car was damaged. And what would constitute "their fault'? If someone vandalized the car while it was there, is that 'their fault'? The other thing that bothers me is that they get to set the sale price for your car. If they overprice the car to try and make a killing off you and it doesn't sell, no sweat off their bag of tricks. They still get their $ 195.00. I would be more comfortable asking them how much they actually want off the top if the car sells. If it's reasonable that the car could sell for what you want and their mark up, then ensure they set that total for the selling price.

Just my thoughts.....

Eric
 
I think they aren't in it for just the $195, they are truly in it to earn the bigger margin dollars of the sale, the 195 is to cover their upfront photography and marketing costs.
From what I can see they sell 78% of the cars that get consigned. It appears that they have sold over 10,000 cars so not a bad record. I've read a few of the dealer reviews and there are a few buyers that had some issues but in most cases all the sellers are happy, and seems quite a few are repeat sellers.

Basic premise is they are a high volume Classic sales outfit with no money tied up in inventory, great business model.

There is the liability issue and I understand both sides, that is something your going to have to judge for yourself.

If your happy with the out the door $$ to yourself, you have to ask yourself, what are your chances of getting that price in 90 days yourself? If you think its good, do it yourself, if not, they may be a good avenue.
 
Would your own insurance still be applicable if the car is left on their premises? Maybe if it is a concern talk to your insurer to get some advice. I agree with Eric and Mike that the initial payment would probably cover their up front costs. Knowing all the possible costs up front would certainly eliminate any problems at a later date. I think I would take photographic documentation of the car as it goes in for consignment.

Good luck.
 
All good points everyone and thanks for your input. I have a hard time understanding how they can sell so many cars with what seems like quite high listed prices. Of course it's anyone's guess at what they're cars actually sell for. Not sure what I'll do ... would still like to run over there and check out their showroom and see maybe see how they talk to prospective buyers. If anything new turns up I'll let you know.
 
Their minimum sales commission is $2,500 or 12% of the sales price, whichever is higher. After the sale you do get your agreed to $’s after you provide a good and clear title, which must be done within 72 hrs of being notified of the sale. Fail to meet any of their requirements and you could be looking at some hefty penalties. The bottom line for me is I think I’d rather put my car up for auction on eBay than go with them … just sounds scary to me but I could be wrong. If anyone is interested in seeing their contract or list of places they advertise their cars, just private email me. Thanks
 
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