CAR BUYING AT AUCTION HAS SOME TRAPS FOR THE UNWARY AND THE UNPREPARED, SO DO YOUR HOMEWORK FIRST
Many people will warn you against buying a car at auction because you can end up buying a complete lemon, with very little consumer protection or comeback.
There is some truth to that, especially if you go in unprepared, but the reality is, there are some really great bargains to be had at auctions if you know what you’re doing and keep a cool head.
Auctions are where the motor industry disposes of vehicles. Companies sell their fleet cars through auctions, as do car hire companies, mining companies, car dealers, and even police forces and government departments. If a company has its cars repossessed, or someone is made bankrupt, their cars invariably end up at auction too.
For all of these groups, an auction is simply a way to move their cars reasonably quickly and where they can get a decent price for them.
Clearly for the private buyer this presents some opportunities because prices at auction are generally lower than a dealer forecourt. And on some slow auction days you may just be lucky and pick up a real bargain.
The first thing to remember if buying from auction is that if you purchase you need to hand the payment over right there, or within a few days, so you need the means to pay.
One real problem with an auction is that while you can look at the cars before the auction – and you can often run the engines – you can’t road test the cars so if there’s something very wrong it’s hard to know before you bid.
The way to approach an auction is to firstly go to several and don’t take any money with you. That’s right: get used to the atmosphere, look at how it all works, check out all the cars, and make notes about eventual prices they go for. Don’t be tempted to bid straight away – unless you’re chasing something rare or unusual, another similar car will come along soon.
This approach will give you a feel for what’s popular and what’s not (though that can change from week to week, even at the same auction house, so try and go a few times), and you will also be able to see how it all works on the day.
You will need to register with the auction house so you can bid, but as I say, don’t bid the first time you go, just observe.
Some vehicles to look for at auction. And some to avoid.
Ex-car hire vehicles – these may have reasonably high mileage, but sometimes not, because reputable car hire companies like their vehicles to be in top condition so they tend to be replaced regularly. They are usually properly serviced and on schedule and any repairs will have been carried out promptly. However, as we all know, car hirers have little or any respect for the vehicles they have hired, so some of them may have had a tough life.
Repossessed cars – usually there is nothing wrong with these cars. They are there because their owner is has defaulted on repayments, not because there’s necessarily anything wrong with the car. But there can be an issue with maintenance; if the previous owner couldn’t afford to keep up the payments, was he or she also skimping on scheduled maintenance.
Classic cars – these can be had at decent prices, but there is much more emotion attached to these vehicles so sometimes they can surprise with high final prices.
Large luxury cars – while extremely expensive when new, luxury cars can quickly lose value and often end up at auction. They can be a real bargain but one of the reasons they fall in value is down to complex electronics and equipment which can fail and is expensive to put right. Still, if you want an older Rolls-Royce or Bentley or Jaguar, the auction is a good place to start.
Commercial vehicles – auctions are a great place to pick up light commercial vehicles (utes, vans etc.) and heavier vehicles such as trucks. Companies that have fleets of these vehicles replace them on a regular basis and they are usually diligent with maintenance while they own the vehicles (although not necessarily using dealers for servicing).