I entered a bid of $140 and got instantly auto-outbid. But eBay gave me a convenient "bid $143" button to click with seconds to spare and I got it for $142.51. Why that odd amount I don't know.
The reason is one I have actually exercised myself - and you would have lost by the smallest of margins if you did not make that extra bid - and here is why ....
The other bidder put in a 'maximum' bid of $140.01 - specifically to be "just ahead" of anyone who bid a round amount like $140.00. The previous amount of (let's say it
was $125.00) is the result of someone else bidding $122.50 against this $140.01. EBay's proxy bidding system applies a
bid increment which, at that price rangel, is $2.50, giving a proxy bid of $125.00.
When you put up a $140 bid, the eBay system tried to apply another bid increment of $2.50 - but the maximum of the other bidder was $140.01, so the eBay system could only push the winning bid to that. If you had stopped there, you would have lost by 1 cent. When you put in $143.00, the eBay system applied the $2.50 bid increment, resulting in you winning for $142.51.
Looks weird on the surface - until you see the tactics bidder use to edge out other bidders. The best example I had was 3 bidders sniping for a monitor many years ago. I won it for $162.67 - beating out the runner up by
two cents.