A Guide for Repossessed Car Auctions in Australia

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A Guide for Repossessed Car Auctions in Australia

If you are looking for a car to repossess and save your wallet some few dollars, here is a guide to help you through a successful buy. A guide for repossessed car auctions in Australia.

Understand the Different Types of Sale

Different Auto Auction sale centres have different sale types. They are normally broken into different lanes which are ‘dealer only’ – dealers’ license is required and ‘Public sales’- open to all. Public sales are further split into other categories depending on the type of vehicle, where it came from, its condition, and estimated value.

1. Government Car Auction

Just as the name suggests, this category features cars that come from the federal government and local council. Some of these vehicles may be specialized such as ambulances, police cars, emergency services vehicles, etc. The auction may also include ex-lease cars which fall under 50,000 km averagely.

2. 4WD and Commercials

A large number of a certain type of vehicle may have a special lane. 4WD is a good example of such vehicles. Other cars include commercial vehicles such as prestige vehicles, classic vehicles, luxury vehicles, etc.

3. Ex Lease

In Australia, most large entities lease their vehicles from the manufacturers, leasing companies, and finance companies. Such cars stick to the logbook maintenance schedule. They are most times sold off towards the end of the lease contract or warranty. This is the best auction to people looking forward to saving and acquiring a close to a new vehicle.

4. Under 10,000 lane, Clearance lane, and Value Cars

Vehicles in these categories come from anywhere. They could come from finance companies, dealers, private sellers, seized vehicles, etc.

5. Finance Repossession

These types of repossessed car auctions are run by finance companies from loan defaulters. These companies sell off the vehicles to recover in full or in part the money they initially lent out.

6. Salvage Auctions

This is the category of cars that have been sold off by insurance companies. They are mainly vehicles written off due to hail damage, flood, stolen or recovered vehicles, and accident damaged. The vehicles could be ‘statutory write-offs’ or ‘repairable write-offs’.

Why do Cars get auctioned?

Cars go to auction for the obvious reasons like ex-government cars or repo cars for sale. When it comes to general sale, it is important to be careful as most people use the auction as a damping place to their problematic vehicles. Make sure you know what the problem is before buying.

Buying Tips

Read through the conditions of sale
Pay attention to the auctioneer when they are reading the terms and conditions, ask questions to understand, familiarize with the fees and taxes, etc.

Determine the yard value of the vehicle
Pay a visit to the car dealers and yards to determine the value of the car you are interested in. Make sure what you should expect condition-wise from the vehicle. Log in to classified sites and check the value of the car there.

  1. Visit a few auctions and get comfortable with the price flow before you buy a vehicle.
  2. •The auctions that allow prior inspection of the vehicle allow you to visit them with a mechanic.
  3. •Be aware of any possible reconditioning that requires to be done.
  4. •Get to know who is who at the auction. You could be bidding against dealers, wholesalers, etc.
  5. •Keep in mind that there are different strategies used for auction. You may encounter aggressive bidders to scare other bidders or some sit at the background and rise when it is about time.
  6.  In case you are successful, make a deposit when the hammer falls and arrange for the final payment and towing to be done.
  7. •In case you are interested in an imported vehicle, be careful and enquire if the vehicle could be re-registered.

Wrapping up

You now have a good idea of what to do and what you should know when getting a vehicle from the auction. Ensure you exercise due diligence before making the purchase. For written-off vehicles, consult with the relevant regulatory authorities such as road and safety and transport for a fair deal.

Featured photo: Unplash
Katherine Perkins

A woman who loves traveling and eating. Living for fashion, beauty, kiss and makeup!

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