Auction vs Car Dealer vs Private Sale

[Ext User(News)]

I'm looking at purchasing a second hand car and want to know the best
method.

Typically you pay more through a dealership, however how much more? What
are the benefits of going through a dealer?

How much do car auctions inflate prices? Any benefits?

So far I'm after a mid-90's sedan or late-90's small car with a budget
of around $8k.

[Ext User(Hotman Paris Hutapea)]

On Mon, 25 Jul 2005 20:54:22 +0800, News <news@iinet.net.au> wrote:

>I'm looking at purchasing a second hand car and want to know the best
>method.
>
>Typically you pay more through a dealership, however how much more? What
>are the benefits of going through a dealer?
>
stat warranty for some models (altho in practice if the dealer decides
not to honour it you're up shit creek)
guaranteed clear title (this is the biggie)

>How much do car auctions inflate prices? Any benefits?
>
they don't set the price, unless through dummy bidding.
it's like going to the casino. you could get a car with major
problems, or you could get a good one. the price will be cheaper than
other buying mediums.

>So far I'm after a mid-90's sedan or late-90's small car with a budget
>of around $8k.
>
personally i'd buy privately. there are 2 key things to ensure:
1. that it is mechanically sound. unless you know your stuff get it
checked out professionally, there are a few options.
2. this is the crucial one - investigate its history. in vic you can
buy a package from vicroads that will tell you its history. if a
vicroads employee moonlighting as a professional crim hasn't doctored
it then you are pretty safe. if he has then you're up shit creek again
:)

--

Attorney at Law
5/37 Paknabiel Way
Denpasar, Indonesia.

[Ext User(Noddy)]

"News" <news@iinet.net.au> wrote in message
news:42e4e0ff$0$29408$5a62ac22@per-qv1-newsreader-01.iinet.net.au...

> Typically you pay more through a dealership, however how much more? What
> are the benefits of going through a dealer?

Not many.

Some prefer to buy from a dealer to obtain a warranty, but you pay a pretty
inflated price for that privelege on average, and used car warranties can be
useless at times.

> How much do car auctions inflate prices? Any benefits?

Car auction prices can be very good or very bad, depending on where you go.
There are some that sell only to the trade (and this is where a lot of
dealer used cars come from), while others deal with the public in general.
Obviously public auctions generate higher prices, but there are good and bad
public auctions to attend.

Late night or week-end auctions are best avoided, as thats the time most
people can attend, and the more potential buyers the higher the prices end
up. Weekday auctions offer the best buys, with some real bargains.

> So far I'm after a mid-90's sedan or late-90's small car with a budget of
> around $8k.

$8k would get you a nice AU Falcon or VT Commodore at auction if you look
around. I'm not really up to date with small car prices as I don't pay much
attention to them, but the last time I went to an auction (a couple of weeks
ago), a 2002 model Nissan Pulsar went for 9 grand. Magna's remain the most
cost effective buy, with many going for a song, while government fleet cars
often get given away for very little money indeed.

Auctions aren't for everyone, and there are some distinct disadvantages for
the average punter. The titles on all cars sold are gauranteed, but that's
about all. You can't test drive the cars or even start them, and the
"reports" on the cars are very basic. You take a bit of pot luck in buying,
but you generally come out in front for the money you pay. If your handy
with tools and can do a bit of work (if needed), it's even better.

I've bought plenty of cars at auction and have never had a bad one.

--
Regards,
Noddy.

[Ext User(hippo)]

News wrote:

>I'm looking at purchasing a second hand car and want to know the best
>method.

>Typically you pay more through a dealership, however how much more? What

>are the benefits of going through a dealer?

>How much do car auctions inflate prices? Any benefits?

>So far I'm after a mid-90's sedan or late-90's small car with a budget
>of around $8k.

I recokn there are pluses and minuses with all 3:

Private
+ probably cheaper
- no warranty & little comeback

Dealer
+ Warranty & some consumer protection
+ Most of them'll still be there tomorrow
- Car may cost more

Auction
+ Savings if you're clued up & disciplined
- Bidding against professionals
- Settlement on close of sale

I'm *reasonably* car savvy but I still generally buy from a yard. No time
to get to auctions and I've been stood up once to often by private sellers
who weren't home or "just sold it mate ... yeah I know you said you were
coming over now". Often helps to restrict yourself to a 3 or 4 model
shortlist too, just to simplify comparisons. Just means you do your
homework thoroughly first. If you really know what you want, then it'll
be easier to find.

carsales.com.au is worth a visit both for homework and purchasing IMO.
Cheers

[Ext User(kevcat)]

News wrote:
>
> I'm looking at purchasing a second hand car and want to know the best
> method.
>
> Typically you pay more through a dealership, however how much more? What
> are the benefits of going through a dealer?
>
> How much do car auctions inflate prices? Any benefits?
>
> So far I'm after a mid-90's sedan or late-90's small car with a budget
> of around $8k.




with auctions the car is usually unregistered so you have to arrange RWC
and rego, which also means a tow from the auction yard, but if you get
it cheap enough then that can be offset, but you can't usually get RAC
inspections, auction places do offer a very basic mechanical check, some
of which are quite dodgy, so you really don't have much idea of major
problems until you have paid up, and it's too late then

dealers offer some protection like cooling off periods and limited
warrenty and they guarantee clear title, all of which they must provide
by law, some will offer an RAC(Q,V,NRMA) pre inspection also

I think a private sale would be the better option, plenty of people
upgrade their car and can sell their old one at a higher price than the
dealer was offering as a trade(and usually get a better deal with no
trade), and yet will be less than the dealer would sell it for

the only thing is you have to check the car's bonofide yourself, REVS
and RAC check should always be done(REVS check over the phone on the day
of the sale not before), usually the seller will supply a RWC and the
car will have some rego
you can usually pick if the seller is a bit dodgy, but if the car checks
out ok and looks good then all should be ok


Kev

[Ext User(Dean & Monika)]

Just letting you all know, I am letting EVERYONE know because I am
absolutely stoked.

I bought at Rundles Auctions in Dubbo 2 weeks ago an 03 Camry Ateva, 5 new
tires (all knobs on them - admittedly the spare was the original Dunlop)
with rego until 30/6/06, Ex govt (lands and water), 5 new tires, 50000km on
the clock, for $16800 at auction (my first actual car auction experience).
I might add with balance of new car warranty and the car has had full
service history and is in showroom condition (save for 1 stonechip on the
bonnet). Full market value (as per insurance co market value) is $27000... I
will never, ever go to a dealer again!

Local dealers in Dubbo are selling the lesser, older Altise (02 model) for
$24000, same year model Altise (03) for $27000, and Atevas (older 02) for
$29000. BIG mark up from the auction prices.

Regards,
Dean.

[Ext User(News)]

News wrote:
> How much do car auctions inflate prices? Any benefits?

I've been doing some quick research in auctions and seems like there are
some real bargains to be had (if you do your homework).

What are the costs involved?
- Registration fee? Do you have to pay a fee to bid (and is it refundable)?
- Auction fee?
- GST?
- Rego?
- Anything else?

I'm a little bit hesitant of the "no test drive" policy. How do you
determine if the car is okay without turning the key?

Does being in WA affect pricing, process etc etc re: auctions?

Responses appreciated.

[Ext User(Noddy)]

"News" <news@iinet.net.au> wrote in message
news:42e798f7$0$5418$5a62ac22@per-qv1-newsreader-01.iinet.net.au...

> What are the costs involved?
> - Registration fee? Do you have to pay a fee to bid (and is it
> refundable)?

Generally.

> - Auction fee?

Most auction houses have no buyers premium, as the vehicle's owner pays a
commision to sell the vehicle.

> - GST?

Fall of the hamer prices are generally GST inclusive, unless specifically
noted as otherwise.

> - Rego?

Normal registration & transfer fees are payable when ytou register the car
(many auctioned cars are sold unregistered).

> - Anything else?

Not really, although some auction houses have their own specific ways of
doing things. If you've never been through the auction process before, it's
a good idea to go along as a spectator a few times before intending to buy,
just to get the jist of how things operate.

> I'm a little bit hesitant of the "no test drive" policy. How do you
> determine if the car is okay without turning the key?

You can't to any great degree, and that's the gotcha.

You're allowed to examine the cars while they're parked in the holding yard
prior to being auctioned, and they're all driven into the sale area for
people to see them running. They mostly all have a condition report attached
to them as well, but these are *very* basic, and I've yet to see a bad one
anywhere :)

The price of the car at auction is the trade off you get for taking a chance
that it's okay, and most of the newer cars generally are. The exception to
this is generally police & sherrifs auctions where a lot of vehicles are
repossesions, and in those cases it's not uncommon for cars to be
deliberately damaged before they're impounded.

> Does being in WA affect pricing, process etc etc re: auctions?

Sorry, but I have no idea.

--
Regards,
Noddy.

[Ext User(Dean & Monika)]

With Rundles. It was $500 down on the night in cash or approved (bank or
business?) cheque and the balance by 4pm the next working day. They had a
1.65% fee on top (which took mine to $17077.20 from the $16800 I got the car
for). No fee to register, GST inclusive on the bidding, rego was
transferrable with the car, The only other cost involved was stamp duty at
the RTA when I transferred it to my name (which you have to pay anyway).

As for the no test drive, I had driven similar cars for work and at
dealers, and I knew how they should drive. Being with a fullservice history
(ex govt rules) and under manufacturers warranty, I didnt have a problem
with not driving the car before.

I would recommend to look at the car, ie what condition it is in, if good
and appears straight, etc, Also see if it has the service history, mind you
all ex govt cars have to have this.

As for being in WA, dont know the cost involved with getting it there. I
guess if you got a cheap flight, attended the auction and drove the car
back, it might cost you a few hundred in fuel, etc. Do you have local
auctions there? I know www.pickles.com.au have auctions in Perth, but I
dont know any others.

Hope this helps.

Regards,
Dean



"News" <news@iinet.net.au> wrote in message
news:42e798f7$0$5418$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
> News wrote:
> > How much do car auctions inflate prices? Any benefits?
>
> I've been doing some quick research in auctions and seems like there are
> some real bargains to be had (if you do your homework).
>
> What are the costs involved?
> - Registration fee? Do you have to pay a fee to bid (and is it
refundable)?
> - Auction fee?
> - GST?
> - Rego?
> - Anything else?
>
> I'm a little bit hesitant of the "no test drive" policy. How do you
> determine if the car is okay without turning the key?
>
> Does being in WA affect pricing, process etc etc re: auctions?
>
> Responses appreciated.

[Ext User(ken0999)]

This site has some auctions for WA.

https://fortress.wa.gov/lewisco/home/DesktopDefault.aspx?tabid=265


____________________________
Find Your Next Car Today.
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Dean & Monika wrote:
> With Rundles. It was $500 down on the night in cash or approved (bank or
> business?) cheque and the balance by 4pm the next working day. They had a
> 1.65% fee on top (which took mine to $17077.20 from the $16800 I got the car
> for). No fee to register, GST inclusive on the bidding, rego was
> transferrable with the car, The only other cost involved was stamp duty at
> the RTA when I transferred it to my name (which you have to pay anyway).
>
> As for the no test drive, I had driven similar cars for work and at
> dealers, and I knew how they should drive. Being with a fullservice history
> (ex govt rules) and under manufacturers warranty, I didnt have a problem
> with not driving the car before.
>
> I would recommend to look at the car, ie what condition it is in, if good
> and appears straight, etc, Also see if it has the service history, mind you
> all ex govt cars have to have this.
>
> As for being in WA, dont know the cost involved with getting it there. I
> guess if you got a cheap flight, attended the auction and drove the car
> back, it might cost you a few hundred in fuel, etc. Do you have local
> auctions there? I know www.pickles.com.au have auctions in Perth, but I
> dont know any others.
>
> Hope this helps.
>
> Regards,
> Dean
>
>
>
> "News" <news@iinet.net.au> wrote in message
> news:42e798f7$0$5418$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
> > News wrote:
> > > How much do car auctions inflate prices? Any benefits?
> >
> > I've been doing some quick research in auctions and seems like there are
> > some real bargains to be had (if you do your homework).
> >
> > What are the costs involved?
> > - Registration fee? Do you have to pay a fee to bid (and is it
> refundable)?
> > - Auction fee?
> > - GST?
> > - Rego?
> > - Anything else?
> >
> > I'm a little bit hesitant of the "no test drive" policy. How do you
> > determine if the car is okay without turning the key?
> >
> > Does being in WA affect pricing, process etc etc re: auctions?
> >
> > Responses appreciated.