People unclear on the concept - bidding at an Auction

I love going to auctions but I make sure to do my homework first and to drop out when the bidding gets into cloud cuckoo land. Witness (or is that witless) this poor schlub bidding $760.00 on a clapped out 40 year old South Bend engine lathe. The bid: The Lathe: The Location: This was once a nice lathe -- probably purchased sometime in the late 1960's to mid 1970's judging from the magnetic motor switch. South Bend made really nice equipment. I have a much older South Bend lathe that I bought off some guy who was cleaning out his grandfather's house. Still had the old manuals and tooling and it was in pristine condition -- the old guy knew how to work it. One of the best $1,200 I ever spent... This poor unit spent the last 40 years under the tender ministrations of teenagers in shop classes. No tooling visible, one chuck but no indication as to the runout or condition of the ways. And some poor fool thinks that it is worth $760. As an example, $1,500 gets you this fine unit from Grizzly: Really similar capacity (11" swing and 26" length v/s 12" swing and 24" length), brand new with free shipping (USA only), good guarantee and it comes with a couple of chucks, some tooling, a faceplate and it basically ready to roll whereas the poor South Bend will require several hundred hours (if there is any damage to the ways) and at least a bearing replacement to bring up to snuff... If I saw this at an auction, I would drop out right around $150 at the maximum. Caveat Emptor.