What exactly is a reserve?
A reserve is a confidential minimum price that you set together with Octane before the auction begins. If bids do not reach this price when the auction closes, the car will not be sold. The important difference from other platforms: at Octane, the reserve remains completely invisible to bidders throughout the entire auction. Bidders do not know what the reserve is, and they cannot see whether it has been reached. Only after the auction ends does it become clear whether the car has been sold or not.
How do we set the reserve together?
At Octane, you do not determine the reserve alone. Our team discusses with you what a realistic floor price looks like, based on comparable sales, the current market, and the specific condition of your car. This conversation matters: a reserve set too high leads to an unsold car, while a reserve set too low offers little protection.
The process
- You discuss your expectations with the Octane team
- We share our market assessment based on recent results
- Together you arrive at an amount both parties support
- The reserve is locked in before the auction starts
Why is the reserve invisible?
On some auction platforms, bidders can see whether the reserve has been met. Octane deliberately chooses full confidentiality. This has several advantages. Bidders are not discouraged by an indicator showing the reserve has not yet been reached. All bidders bid based on their own valuation of the car, not based on a signal about the reserve. And it prevents strategic behavior where bidders wait until the reserve is met before bidding seriously.
Advantages of a reserve
A reserve offers concrete benefits for sellers who want certainty:
- Protection against a disappointing final result
- The certainty that your car will not sell below a specific amount
- More peace of mind during the auction, knowing there is a floor
- No pressure to accept whatever the market offers at that moment
Potential disadvantages of a reserve
Honesty matters, so we also discuss the downsides:
- A reserve can limit the number of bidders if buyers suspect the price is high
- There is less excitement compared to a no-reserve auction
- If the reserve is too high, there is a real chance the car will not sell
- After a failed auction, it can be harder to relist the same car
When is no reserve a good idea?
A no-reserve auction often attracts more bidders and creates more dynamic energy. It signals to buyers that you are serious and that the car will genuinely be sold. This works particularly well for cars with a broad audience, models with strong demand, and cars with a well-predictable market value.
The risk, of course, is that the car sells for less than hoped. But in practice, we often see that the excitement of a no-reserve auction actually leads to higher final prices, because more bidders participate actively.
Setting the right reserve
A good reserve is not your dream price or the amount you once paid for the car. It is the absolute minimum you are willing to accept. Consider the following guidelines:
- Look at recent sales of comparable cars on Octane and other platforms
- Be honest about the condition and any issues with your car
- Take current market conditions into account
- Think of the reserve as your floor, not your expectation
- Discuss your considerations openly with the Octane team
What happens after the auction?
If the reserve has been reached when the auction closes, the car is sold to the highest bidder. Octane then guides the rest of the process: payment, handover, and transport if needed. If the reserve has not been reached, the car is not sold. In that case, we discuss options with you: re-auction with an adjusted reserve, offer the car as no-reserve, or choose a different strategy.