Hi All.
I am buying a 4wd soon and am keen to try out the auctions. I have been to several here in perth attempting to gain some experience.
Any tips for newbies? I.e why would cars have no books and 1k on the clock. Where do the non fleet cars come from??
Thanks very much
Thanks for the help! There are some gems in there for sure.
Whatever you do, do not buy an ex mining vehicle.
I saw one large shipment come in from some site up north. I lived for years in warzones and never saw so many neglected, damaged and abused vehicles in one spot as that shipment.
I buy at auction, usually Pickles or Graysonline - because I live in rural NSW I rarely attend so I bid online.
This can be risky as you only have the photos to go by and graysonlne rarely have good photos in high enough definition to make confident calls. I find Pickles to be better (generally) as they not only tend to have better pictures, but also include a condition report that tells you a little more about condition and where any marks/damage is.
As for the buying process - be aware of the fees and the thresholds at which fees change. Do your research thoroughly, redbook is a good start and I look at carsales.com.au and gumtree cars as well to get an idea of the market (even though virtually everyone overprices their cars in the market) - look at dealer cars in similar condition/mileage and subtract about $20 - 25% to get an idea of real worth.
I run a spreadsheet with all the costs (buying fees, buyer premium, travel/transport cost, repairs, blueslip, CTP, rego so that I can quickly see what my upper spend world be.
Once you pick your upper spend limit, stick to it. Never get caught in bidding wars and don't feel bad when you miss out on a vehicle because someone bid $100 more than you, truth is you probably would have kept bidding against that winner and pay far too much.
Of course, if you are near the auction, go and check the vehicle in person first.
Other thoughts….
-Factor in the cost of a new key if the vehicle has no spare, this can run from $120 to over $800 depending on the car. If you need a spare made this should be the first thing you do after picking up the car. Do your research to see if you can get a cheap clone done or if you need to pay through the back teeth at a stealership.
-Due diligence on the model you are after, look up various used car reviews so you know what sort of problems that model has so you can look out for obvious things like leaks or noised that may point to potential costly repairs (no consumer warranty on auction cars).
-Service history is good to have, but if there is none, I tend to look at 1. tyre condition; people who care about their vehicle don't drive around on badly worn tyres. 2. oil condition; check the dipstick to see oil quality, if it is old and black or smells of burning then leave it alone. Also, just because there is no book, does not mean the servicing has not been done, these can go missing between transfers. Look for a service sticker on the windshield. People who care about their vehicles often tend to do dealership services (stupidly) or have a trusted mechanic they like to use. If you ring the service department on the sticker, they may have a service history on record.
Legend. Thank you.
Where do the non fleet cars come from?
I have used Pickles.
Apart from typical repo cars, ie. Big Holdens and Fords, everything else isn't much cheaper. You're still forfeiting a whole lot of buyer protection buying through the auction.
Minor descriptive "errors" aren't something you can contest as it is stipulated that what you see in final inspection is what you get.
You don't have the oppurtunity to remove the vehicle for any inspections either. I've seen a few vehicles that had blatant odometer tampering, or mismatched engine to chassis. Of course, the sale sheet doesn't make any mention as one is illegal and the other an "inconsequential" oversight.
Rare vintage/semi-vintage (which was what I was after) had full time buyers punting.
How much can you expect to save off the red-book value in an auction? I know that it can be the luck of the draw, but whenever I've looked at car auctions (grays, pickles), the saving is like 5-10% and you're basically buying blind … didn't seem to be worthwhile IMO.
Buy all my vehicles at auctions (usually Pickles) I go for logbooks & like to see a corporate or government vehicle with good k's that has had all its servicing at appropriate times.. I figure they never skimp on anything recommended by their mechanics so will tend to be in good condition. Inspect all vehicles prior to bidding ~ sometimes it is possible to start the engine and listen for any troubles.. cars sold on behalf of a dealer and certain other categories (definitely not all) when sold at auction are required by law to come with a statutory warranty (see here: https://www.commerce.wa.gov.au/sites/default/files/atoms/fil… ) good if you can find a vehicle that does for extra peace of mind. Remember to include auction fees when thinking of the highest amount you will bid - don't get carried away.. I once saw two obvious novices get into a bidding war on a second hand corolla that got so carried away they bid well over the price to buy a fully featured model new.
I think if you've been to a few already you'll have gotten a good idea of what the vehicles you are interested in will go for.. if a particular auction goes much higher you just wait till the next ;)
Saw some amazing auctions during the GFC when petrol prices peaked, year old V8 Hoden's were getting passed in at less than 50% retail value & I remember seeing a 6 month old mechanically perfect, no accidents, low km Great Wall SUV go for $3,500 at another. Just amused me that you can get certain vehicles at auction that absolutely no-one is interested in, especially if car yards don't think they will move so they go for absolutely nothing.