"I found a couple of webisites that have all these things like apple laptops going for under $20 brand new..........i really want one, but the retail price is way out of my budget, and i just want to know how these penny auction things work.....thx"
Not all penny auctions are scams, but I believe the majority of ones selling a lot of laptops are.
Very few legitimate sites have enough users to afford to sell these expensive products more than a few times a week.
Here is how a penny auction is supposed to work (emphasis on supposed to)...
A product, such as a laptop, is put up for auction starting at $0.01
Penny auctions are auctions where you buy your bids, and as you bid the price goes up by a set increment (usually a penny) and more time is added to the timer.
The winner is the last one to place a bid when the timer reaches zero.
The retail price, let's say is $500.00.
The auction hopes the item will receive enough bids to cover the cost of the item, and make some profit.
For example:
Let's say the bid price was $0.50 each.
Using the above laptop, the penny auction would want more than 1,000 bids placed to break even.
1,000 bids would bring the price of the auction to only $10.00.
If you were the 1,000th bid and the timer reached zero you would be the winner, and after paying the $10.00 and shipping, the laptop would be yours.
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