23 Feb 15
Vehicle auctions are owned and operated either by a private company or by the government and can be a great place to pick up a car bargain.
However, there are a number points to check off and understand before you make a bid on the vehicle of your dreams. Learn how to safely buy a car at auction by examining our tips and facts below.
Auctions are often run by car auction houses who obtain used cars from fleet operators, finance companies and vehicles that are ex-government. Auctions may even be run on some privately own vehicles that sellers want to put up on the open market. As a result, auctions are a great place to pick up a real bargain on your vehicle of choice.
Auctions have preview days that will allow interested buyers to inspect the cars going on the block up close. You'll be able to sit in the car and look under the bonnet - but you won't be able to take a test drive before you buy.
As a result, you should know a thing or two about what to look for - or take along someone who does - before thinking about car buying at an auction.
Auctions will vary depending on auction house, but according to the Department of Fair Trade, Queensland, there are a few things to understand before placing a bid.
As noted by former NSW Government’s Minister for Transport and Roads, David Campbell “There is a black market for purchasing written-off vehicles at auctions, then using stolen parts to rebirth and register the car, to be sold for a tidy profit."
This led to a law being implemented in NSW banning the re-registration of cars that have been deemed repairable write-offs.
However, this should be a warning to buyers at auctions - the used car history is not guaranteed.