Cars & Bids raises buyer fees after layoffs

The popular online auction site appears to be looking to increase profits amid recent layoffs.

Mar 10, 2025 - 01:24

Cars & Bids, the popular online auction site for enthusiast vehicles, has long positioned itself as a value-oriented alternative to Bring A Trailer, offering lower buyer fees to entice enthusiasts looking for a deal.

But after recent layoffs and business restructuring, the site is taking a different approach. On Tuesday, Cars & Bids increased its buyer fees to match Bring A Trailer’s structure, a move that could reshape its appeal in the competitive online auction space.

The new fee structure

Since its inception, Cars & Bids has charged a 4.5% buyer fee, capped at $4,500, with a minimum fee of $225. Under the new structure, the buyer fee will increase to 5%, with a new cap of $7,500 and a $250 minimum fee. The result? Buyers could end up paying anywhere from $25 to $3,000 more per transaction, depending on the final bid price.

The change eliminates one of Cars & Bids’ primary advantages over Bring A Trailer: lower fees. Previously, a winning bid placed on Cars & Bids resulted in lower overall costs compared to its rival. Now, with both platforms charging identical fees, buyers may start considering other factors when choosing where to bid.

Why raise fees now?

The fee hike follows significant layoffs at Cars & Bids, which cut its entire business development team and reduced staff in community moderation, accounting, and human resources, according to The Autopian. The company appears to be tightening its budget while looking to increase revenue, likely in response to a cooling enthusiast car market and slower auction volume.

Raising the buyer fee cap was arguably overdue, as previously the maximum fee of $4,500 applied to cars selling for $100,000 or more, a relatively low threshold given the rising values of collector vehicles. A few extra thousand dollars in fees likely won’t deter high-end buyers. However, increasing the percentage-based fee and minimum fee could make budget-conscious bidders think twice.

Is Cars & Bids still worth it?

With fees no longer serving as a differentiator, Cars & Bids will need to emphasize its other strengths. The platform is known for its transparency in modification disclosures, a user-friendly interface, and a streamlined escrow service that ensures secure transactions through KeySavvy.

For buyers purchasing sight unseen, KeySavvy can add peace of mind by facilitating payment and title transfer, potentially even reversing deals in cases of fraud.

Additionally, Cars & Bids often features more driver-quality enthusiast cars — vehicles with some imperfections but at prices that reflect their condition. While the cost advantage is shrinking, some buyers may still find better deals on a case-by-case basis.

Final thoughts

With the enthusiast car market cooling off and online auction platforms under pressure to maintain profitability, Cars & Bids’ fee increase is an unsurprising, if risky, move. The question remains whether it will be enough to stabilize the business, or whether it will drive buyers toward its larger competitor.

If private equity backing Cars & Bids loses confidence, the enthusiast car auction landscape could shift toward a Bring A Trailer monopoly, reducing competition and options for buyers and sellers alike.

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