Car Auctions in Australia – The Why, Where & How

Every day thousands of vehicles of all shapes and sizes go under the hammer in Australia in auctions that are open to the public. After many years of buying at auction, I am going to share whether you should too, types of sales, where to buy, and some essential tips if you choose to buy at auction.
Key Tips in this article
- Understand the auction process, especially at larger auctioneers that have multiple lanes and sale categories
- Comprehensively research the vehicle you are interested in
- Check if you need to register in advance, especially for online auctions, this may involve submitting ID and payment details which may need to be done several days in advance
- Read the conditions of sale, and ask questions if unsure
- Be aware of the fees and taxes that may be added to the final price
- Get a feel for things, go to a few car auctions, without your wallet, and get comfortable with how things flow.
- Most auction centres offer prior inspection, so if possible visit the auction site with a mechanic.
- Know what you are bidding on, the time to ask the auctioneer questions is before the auction, not after.
- 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 the things you can’t see.
- On auction day get a feel for who’s who at the auction, are you bidding against dealers, wholesalers, etc..
- 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.
- Understand the end-of-sale process, how long you have to remove the vehicle, and options for taking the vehicle from the site.
- Contact vehicle tow operators to understand the delivery costs
- Be wary of ‘import’ vehicles and why they are at auction, try to get confirmation from the auctioneer as to whether it can be re-registered.
Should you Buy a Car at Auction?
Buying at auction is a great way to save on fees and costs that dealers add to cars, although, it is not without its pros and cons. The first of those cons is that you are foregoing any of the statutory protections offered when buying a car from a dealer with the main pro being the chance of saving on dealer charges as mentioned.
If you do your research and are buying an under 3-year-old vehicle from ex-gov/lease sales then the risks involved can be reasonably low. Especially when the vehicle still has a factory warranty.
On the other hand, buying older vehicles from clearance lane sales etc. is perhaps more suitable for the mechanically minded who understand the risks and potential costs.
What statutory protections are you offered when buying a used car? It differs from state to state. For example, when buying from a dealer in NSW
The Motor Dealers and Repairers Act 2013 (MDRA) provides a statutory warranty for used cars in New South Wales (NSW) that lasts for three months or 5,000 kilometers after the sale date, whichever comes first. The warranty applies to vehicles that are less than 10 years old and have traveled less than 160,000 kilometers.
https://www.nsw.gov.au/driving-boating-and-transport/buying-and-selling-vehicles/buying-a-used-vehicle
When buying from an auction, this law does not apply and vehicles are sold as-is without any cooling-off period. This applies to both traditional auctions and online auctions. However, you should check the window of the vehicle where a form should be displayed clearly noting any obligations that may apply under Australian Consumer Law if the vehicle is being sold by a dealer. In most cases, the auctioneer is a third party. If you have any questions, ask the auctioneer before you bid.
What are the Different Types of Car Auctions?
At many of the major auto auction centres you will find a few different sale types, often broken into different lanes, which may include ‘Dealer Only‘ where you will probably require a dealer license to participate, and public sales which are open to all. Public sales are often split into categories based on where the vehicle came from, the type of vehicle, its estimated value or condition, for example:
Ex-Government Car Auctions – as you would expect from the name, feature vehicles that have come from either local council, state, or federal government. Some vehicles may be specialised, such as police interceptors, emergency services vehicles, ambulances, and so on depending on the sale. These auctions may also include ex-lease vehicles which generally feature less than 50,000 km on average, although it is not unusual to see cars with only 10,000 km or some with over 100,000 km especially if it’s a specialised vehicle.
Ex-Lease – most large corporations in Australia lease their vehicles from a finance company, dedicated vehicle leasing company, and even directly from the manufacturer. These vehicles usually stick to the logbook maintenance schedule and are sold off usually around the time the warranty ends, the lease contract terminates, etc. It’s common to come across vehicles that still have factory warranty remaining, and this category, like ex-gov sales above, is popular with people looking for savings on a near-new vehicle.
Finance Repossession – cars that are repossessed by finance companies from people or companies who have defaulted on their loans. 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 lane, a good example is 4WD and Commercial vehicle sales, other examples include classic car, prestige, and 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 and always require some work.
Damaged and 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 stolen and recovered vehicles. Vehicles can be deemed ‘repairable write-offs’ or ’statutory write-offs’ with the latter unable to be re-registered, more here.
Where to Find Sales?
Used car auctions can usually be found in every major city and most large regional centres. Two of the larger names in the industry are Manheim Motor Auctions and Pickles Motor Auctions, which have sales in every state, and sell vehicles on behalf of government, police, defense, ex-lease, insurance companies, and major corporations. Many other dedicated vehicle auctioneers hold regular sales for all vehicle types.
Keep an eye on Saturday’s paper for notices and, of course, check the auction centre list for your state. If you know what type of vehicle you are after, you can look for it via the auction search engine. Also, check out our regular weekly sale notices:
Brisbane Car Auctions – Melbourne Car Auctions – Sydney Car Auctions – Perth Car Auctions – Adelaide Car Auctions – Canberra Car Auctions – Hobart Car Auctions
Not to be forgotten are smaller local auctions which may be for business closure or grouped sales. Often they are a mixed bag of items and there may be less bidding competition for vehicles. The downside is you may be bidding against people who are not so car savvy and unknowingly bid beyond a realistic value, you only find out these things by going.
Again, keep your eye on auction notices in your paper, at auction houses in your area, and our regular car auction notices.
Latest sale notices





How to Buy a Car at Auction
Some auctions are open only to dealers but most are open to the public and it is simply a matter of registering which may require some ID, sometimes paying a small registration fee, and in turn, getting your bidder number. For online sales, you may also need to register a payment method which needs to be done in advance of the sale.
DO, read the conditions of sale closely and ask any questions prior to bidding. This is a really important point. You need to be aware of
- Buyer fees – many auction houses will either charge a flat fee or a percentage of the final sale price or both
- How and when payment needs to be made
- Any special conditions of sale
- The requirements for removing the vehicle – some auctions may only allow the vehicle to be towed, and the carrier will be required to show paperwork etc.
Inspecting vehicles before the auction
Most auction centres allow some kind of pre-inspection prior to auction, so, make the most of this time. Check out our guide to inspecting vehicles at auction.
Many larger dedicated vehicle auction houses do offer in-house inspection services and some cars may offer a vehicle report which can be used as a guide. Note, that the report doesn’t make the auction house responsible if you, for example, drive out the door and find the transmission is bad. In most cases, it’s just a guide to the obvious flaws.
Having the clearest possible idea of what it will cost to get the vehicle back on the road is a big key to success. In tandem with knowing the current market value of the vehicle, you then have a good idea of the maximum you are willing to bid. So again, use the pre-auction inspection times to your benefit.
Some vehicles have known faults that tend to appear upon a certain milage, be sure to understand the inherent flaws of any vehicle you may be bidding on. Certain BMW models from 2007 to 2017 are a good example of that with many models known for catastrophic engine and transmission failures that can economically total the vehicle. Always remember, there’s often a good reason why some vehicles seem insanely cheap at auction. Research the specific model you are interested in to discover any common long-term ownership hassles.
Sites like CarsGuide, Redbook, local car yards, and even eBay can help provide you with a reasonable idea of the current market value of any vehicle. Values generally hover in a certain band, allowing for low mileage great condition vehicles and at the lower end, high mileage or poor condition vehicles.
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 far away on auction day. Towing the vehicle is another cost you should factor into your purchase price.
Adding up the maximum you are willing to bid could look something like this example; based on a 2022 Toyota RAV4 GXL Auto 2WD (as of March 2024) and after doing an inspection finding that it only needs 2 tyres and a new windscreen
Market Value (RedBook-$48,800-51,500 | CarsGuide-$38,940 – 45,870 | CarSales-$44,900-$49,900) | av. $39k for high mileage to $49k low mileage (median 45k) |
minus Towing costs | 200 |
minus estimated Repair Costs | 700 (tyres and windscreen) |
minus Registration Costs | 671 |
minus the value of the foregoing of statutory warranty | circa 600 (your own estimate) |
minus the value of time and hassle | circa 500 (your own estimate) |
sub total | 42,329 |
minus Auction Fees | 1150 |
estimated Max Bid | 41,179 |
That should give you a ballpark figure which you can adjust depending on the mileage and quality of the car.
Am I Guaranteed a Bargain?
I often see people pay way too much for items, and quite often I see things go really cheap, but like they say, things are only worth what someone is willing to pay. At the end of the day, it’s your money and you have to establish what the value of that item is in your eyes. A sensible approach is to base that on market value, which you can establish via research of what certain model cars are selling for.
That said, sometimes establishing market value isn’t as easy as it sounds, as you have to take into account the condition of the vehicle, kilometres, and options and try to compare apples against apples. Remembering also, that the car bought at auction will not include a warranty (unless there is a factory warranty remaining) and there are the costs to get the vehicle on the road and registered.
Also be aware of model peculiarities, for example, for the Toyota Landcruiser, a petrol-engine version is generally cheaper than a diesel-engine version, you may think you are getting a cheap Landcruiser but you may actually not be! In other vehicles, a model with the 1.8 L engine may be worth more than the 1.6L etc. etc. I think you get the idea.
The key takeaway here is due diligence and research.
Also See:
This article was originally published on Apr 21, 2010 and updated April 2024.