Traditional auto auctions are a popular way for many to purchase a vehicle. In fact, that’s where many auto dealers purchase stock along with members of the general public buying a vehicle for their own needs. But, before you race off in the hope of grabbing a bargain car there are a few things worth knowing…..

Lets take a deeper look at Car Auctions:

What are the different type of auctions?

At many of the major auto auction centres you will find a few different sale types which may include ‘Dealer Auctions‘ where you will probably require a dealers license to participate and public auctions. The public auctions are often split into categories based on either where the vehicle came from, the type of vehicle, it’s estimated value or it’s condition, for example:

Government Auto Auctions – as you would expect from the name, feature vehicles that have come from either local council, state or federal government. These auctions may also include ex-lease vehicles which generally feature less than 50,000kms on average. Government cars generally have low kilometers too, around 40,000kms would probably be the average, although it is not unusual to see cars with only 10,000kms or some with over 100,000kms.

Finance Repossession -  cars that are repossessed by finance companies from people or companies who have defaulted on their loan. The finance company auctions the vehicle to recoup the money (or part of) which they have lent.

4WD and Commercials – if there is a large number of a certain vehicle type sometimes they’ll have their own special auction, a good example is 4WD and Commercial vehicle auctions, other examples include classic car auctions, prestige vehicle auctions, luxury car auctions etc.etc..

‘Clearance Lane’, ‘Value Cars’ or ‘Under 10,000 lane’- vehicles in this lane or category can come from just about anywhere including finance repo, seized vehicles, private sellers and dealer trade-ins etc.. From my experience cars in these types of lanes go anywhere from $100 to well under $10,000.

Damaged Car Auctions or Salvage Auctions – vehicles here are generally cars that have been written off by insurance companies. They can be written off due to accident damage, flood damage, hail damage or as a stolen and recovered vehicle. Vehicles can be deemed ‘repairable write offs’ or ’statutory write offs’ with the later unable to be re-registered.

Why do cars end up at auction?

It’s a question you should always ask, why is this car here? In some cases it’s obvious like a repo car or govt car auctions, but it gets a little more difficult with general auctions. Auctions can be a dumping ground for problem cars, so don’t make it your own unless you know what that problem is and how to solve it.

Where do you find car auctions?

Regular used car auctions can usually be found in every major city and a lot of large regional centres. There are specialised auto auction centres like Manheim Fowles motor auctions, Pickles, Jupps and others which hold quite regular car auctions of all vehicle types. Vehicles for sale via auction can also be found at company liquidation auctions, public trustee auctions and general auctions which will sometimes feature vehicles as part of the larger sale of items. Keep an eye on Saturdays paper for auction notices and, of course, check the auction centre list, the auction search engine or the friendly advertisers here at Auction Finder.

Will I get a bargain? 

I see people pay way too much for items at auction and quite often I see things go really cheap, but that’s just my opinion. At the end of the day it’s your money and you have to establish what the value of that item is to you. A sensible approach is to base that on market value, which you can establish via research of what certain model cars are selling for.

Sometimes establishing market value isn’t as easy as it sounds, as you have to take into account the condition of the vehicle, kilometers and options and try to compare apples against apples. Remembering also, that the car bought at auction will not include warranty (unless there is factory warranty remaining) and any costs to get the vehicle on the road and registered.

Also be aware of model peculiarities, for example in Toyota Landcruiser, a petrol engined version is generally cheaper than a diesel engined version, you may think you are getting a cheap Landcruiser but you may actually not be!  In other vehicles a model with the 1.8litre engine may be worth more than the 1.6L etc. etc. I think you get the idea, do your research!

Car auction buying tips

Most auction centres allow some kind of pre-inspection prior to auction so make the most of this time. Before going to the auction make sure you know your budget and allow for costs like repairs, roadworthy and registration.

Vehicles are generally not sold with any registration so check with your local registration office if a permit can be obtained to drive the vehicle, otherwise vehicle cartage operators are generally not to far away on auction day.

• Know what you want, decide on a price range, type, make and model that suits you and your budget.
• Prior to going to auctions, visit car yards and dealers to see what the type of car you are interested in sells for, what generally to expect condition wise and determine the yard value of the vehicle.
• Get a feel for things, go to a few car auctions without your wallet and get comfortable.
• Most auction centres offer prior inspection, so if possible visit the auction site with a mechanic.
• Know what you are bidding on, ask the auctioneer questions prior to auction as to where the car came from.
• Keep in mind any possible reconditioning that needs to be done, remember little things add up like new brake pads, an oil seal, a muffler etc. so allow for what you cant see.
• Know the conditions of the auction, read the conditions of sale, be aware of the fees and taxes that may be added to the final price and listen to the auctioneer when they mention terms or conditions etc..
• On auction day get a feel for who’s who at the auction, are you bidding against dealers, wholesalers or public.
• There are many strategies that people use at auction, some may bid aggressively to scare off other bidders and make the auction move fast and some may sit in the background and pounce when the hammers near to fall.
• If you’re successful, you may have to make a deposit on the fall of the hammer and arrange for final payment to take place which is usually required within 24 hours. You’ll also need to arrange towing.
• Be wary of ‘import’ vehicles and why they are at auction, try to get confirmation from the auctioneer as to it’s re-registration status.

Happy Bidding!