A new kind of auction: The car that becomes $282 cheaper by the second

A brand new Fiat Punto will go under the hammer next week on Dropit. Photo / Supplied

A brand new Fiat Punto will go under the hammer next week in a 60-second reverse auction, with the price dropping by the second.

The no reserve auction is run by Dropit, a newly launched Kiwi company who want to add an element of excitement to online auctions.

Dropit auctions begin at the recommended retail price for an item, and drop at a steady rate throughout the minute, stopping when someone swipes their phone, thereby making the winning bid for it.

This means the Fiat, which starts at $16,490, will become $282 cheaper every second until someone bids and ends the auction.

Chief executive Peter Howell said the premise was all about creating brand engagement through making shopping into a game.

"We just wanted to make a cool shopping experience. We wanted to create an app that was fun and exciting - there's a lot of boring stuff out there."

The Fiat is the company's biggest ticket item in an auction to date since launching in mid-November.

Most auctions so far had hundreds of bidders playing, Mr Howell said, but he expected thousands to log on for the chance to nab a brand new car at a bargain price.

"Who knows, it might go for 10 grand, that'd be amazing for someone to get a brand new car for that."

Nerves of steel were needed to bid via Dropit, he said, and recommended getting auction-fit before Wednesday.

"You could do thumb exercises, strengthen up your thumb and make sure you're ready to go," he joked.

"Just calm your nerves," he said more seriously. "Maybe do some yoga beforehand."

How it works:

1. You must register to play, which can be done online at dropit.xyz or through Facebook. You can take part on a PC or through an app on your phone.

2. You have to be online when the auction runs - Dropit does not take auto bids, only live swipes or clicks.

3. Once the auction starts, a five- second countdown timer will show before you enter the live auction.

4. A bid is placed by swiping up on a phone or clicking with a mouse on a PC. Your thumb or cursor must press on the IN button for three seconds before the bid will be recognised, to avoid accidental bids - so make sure you're primed to go or you've got no chance of winning, said Mr Howell.

5. When the countdown clock passes the amount you're willing to pay, swipe up on your phone through the clock to make your bid. The first person to bid wins the auction.