Replying to several points raised... it's 3:30 AM here...

The 2nd Chance Offer came in 4 days after the close of bidding.
My bid came in 5 seconds before the close of auction. The bid stood at £103 up until my bid, which triggered the winning bidder's previously entered maximum bid. Therefore, other bidders losing interest is not a factor. There were only 3 bidders: me, the non-payer and the person who bid up to £101.

I fully appreciate that I am free to accept or decline the 2nd Chance offer but I think the whole point of an auction is to find what the market value of an item is, based on what paying bidders take the price up to. I also see the point that I valued the item up to £137 and so what do I have to complain about? Only that the maximum you are willing to bid is not supposed to be revealed to other parties, even if you win the auction. In this situation, it has been revealed owing to someone bidding in bad faith. I know that had I been the seller I would have felt obliged to offer the item as if the non-paying bidder hadn't entered the bidding at all. Otherwise, everyone's maximum bid would automatically register rather than taking the bidding up by increments as others bettered it.

I take the point that eBay automatically sets 2nd Chance offers at the next highest bid but I am surprised at this. If the item is re-listed, I shall probably bid again as I do need the part. Whether I'll go as high, I'm not sure.

I have taken 2nd Chance offers before, when sellers have more than one of the same item and on a couple of occasions when there were several other bidders and the winning bidder had cancelled his bid (I don't know how that happens...) but without the winning bidder there wasn't this issue of a large gap between my losing bid and the next losing bid, if you see what I mean. Gotta sleep but I will be following this tomorrow afternoon.

Thanks everyone who has taken the time to post!