CAR auctions

frag420

Hi,

I was wondering if there is a rule of thumb perhaps when it comes to biding at a car auction. I know it all depends on the vehicle condition, year etc but how much can one expect to save when buying at an auction??

If i were interested in this car......
http://www.merlincarauctions.ie/search-all-stock.php?page=2&dir=DESC&action=searchresults&vehiclesaddes=all&id=10&sort=makeandmodel&id_listing=458585089&action=viewCarDetails

and having looked at similar here........
http://www.carzone.ie/search/results?searchsource=finder&nParam=200290%2B200300%2B4294911015&channel=CARS&cacheBuster=1266589771617650#nParam=4294911015%2B200590%2B200288%2B200302&sortby=Make|0&channel=CARS&currency=EUROS&searchResultsView=THUMBNAIL&maxrows=10

with the average price somewhere in the 8k mark would it be unreasonable to offer 5-6k for the car or would i be laughed out of it. Is there a general margin for these type of auctions where bye someone would not bit more than say 75% of open market value or is it all down to how the bids go on the night??

cheers

frAg

mickdw

Its all about the bids on the night.
I wouldnt first of all advise you to go buying something on your first visit to the auction.
You may get caught out.
For example if all other bidders were finished & the auctioneer saw that you wre pretty keen, he might take another bid from the back of the room - A bid that never existed to get you to go one bid more. Would you spot stuff like this?
Of late, the auction prices are too near retail prices for it to be worth the hassle. Going into a dealer with cash might get you nearly as good a deal. That all depends on the car type etc.
You chosen car would not be liked by the trade as they are known to be fairly troublesome although I dont know what affect that were have in relation to auction versus retail price.
Im not saying that any dodgy practices go on at the auction you have linked to but you need to be aware of all the angles.
We see reports in the paper about the bargains that are available at auctions, alot of it is crap. One example last week was a 07 bmw 730d which was expected to make €35,000. THe article claimed that this is half its market value when the truth would be that it is marginally below retail. Whether it is enough below retail to make up for the loss of dealer warranty etc is down to the individual but there are not the bargains there that you would be made believe unless you are lucky

Also if you are buying, dont forget there are charges on top of the hammer price so be careful & consider a different type of car too.

-Corkie-

I think mick is right. I know a dealer that has one and would take your arm off as its there over a year. At least you might get some warranty from a garage as these give a lot of trouble.

frag420

malcox wrote: »

I think mick is right. I know a dealer that has one and would take your arm off as its there over a year. At least you might get some warranty from a garage as these give a lot of trouble.

THanks for the advice lads

While I would be interested in something like the LandRover( ideal for the surf boards etc) I was only using it as an example. However I would be interested to know why they give a lot of trouble. I have heard this a lot but I see plenty of them on the road all the time.

Dont suppose you want to tell me who this dealer is eh??

frAg

-Corkie-

Yep its pat kelly or swinford motors. I knew a few lads that had them so i would steer well clear. Toyota rav4 is nice actually

frag420

frag420 wrote: »

However I would be interested to know why they give a lot of trouble.

1.8 K series is a bit underpowered for the Land Rover, head gasket failure is not uncommon on these.

The tranmission is a bigger worry though (HG isn't a hugely expensive job if the engine hasn't been cooked). Transmission probs are often "rectified" by folks converting the Freelander to front wheel drive only. Repairing the transmission can cost up to €2000. The transmission is a weird set up, having front tryes and rear tyres with different thread depths can wear it :eek:
The only time I would consider one, would be if a cheap (€1500 ish) early one came along with the L series diesel and no trany probs existing.

lifer_sean

Prices in the auctions, especially Merlin, are just crazy right now. I was up there last Wednesday week and bought nothing (as a dealer trying to buy stock). Looked at a few cars which were lined up for the Saturday auction, and then tried to bid on-line on Saturday but they all went crazy money.

Some examples (all +6% fees + 180 euro indemnity):
08 Galaxy TDi 20,600+ approx 1400 fees = 22,000. Needed 400 euro bodywork. Can buy from dealer for 21,500 retail.
08 Kia Sorrento = 16,000+fees in poor condition for age.
06 Passat tdi = 11,200+fees
07 passat 1.6 petrol = 12,000+fees
07 Astra SXI above avg miles, scratchy, and with rear damage 7500+fees.

Merlin are deliberately hyping these auctions in the media to get the private punters in because on average they get 15% more this way than from a traditional sale. Many of the dealers have stopped even going there because it's a waste of time.

Definitely very very few bargains.

Barr

RoverJames wrote: »

1.8 K series is a bit underpowered for the Land Rover, head gasket failure is not uncommon on these.

The tranmission is a bigger worry though (HG isn't a hugely expensive job if the engine hasn't been cooked). Transmission probs are often "rectified" by folks converting the Freelander to front wheel drive only. Repairing the transmission can cost up to €2000. The transmission is a weird set up, having front tryes and rear tyres with different thread depths can wear it :eek:
The only time I would consider one, would be if a cheap (€1500 ish) early one came along with the L series diesel and no trany probs existing.

Could you elaborate what you mean by the transmission? Is it the gearbox you’re referring to

mickdw

Barr wrote: »

Could you elaborate what you mean by the transmission? Is it the gearbox you’re referring to

Well if people are cutting off the rear drive as a cure, I can only assume that the problems are further down the line. rear diff perhaps

the ird transfer box wears on many of them, about a grand sterling for a replacement, 2nd hand units are a gamble unless they are from a specialist. The actual gearbox isnt a week spot, be it the pg1 or the bmw unit.

Big Nasty

Where are Indy dealers getting their stock from these days?

The auctions seem to be a waste of time as more ordinary Joe's are going there now thinking they will get a bargain and get into the hype of the whole thing and end up spending more than they would on a forecourt with warranty included - any of the recent liquidation auctions are a prime example of this.

Secondly, where franchised dealers used to sell off anything over 4 years old to Indy dealers they are now hanging on to this stock as these are the type of used cars that are selling.

Lastly, there is little benefit in going North / UK as used prices there are nearly on a par with here, never mind shipping and VRT (unless you're buying nearly new stock which isn't really moving anyhow).

I've heard of even franchised dealers buying used from private sellers on the net just to get stock! :eek:

mickdw

MCMLXXV wrote: »

Where are Indy dealers getting their stock from these days?

Its a good question. Main dealers are retailing the slightly older stuff so that is an avenue greatly reduced. I would be worried now that the small garage is left with only one route to getting stock. That would be buying up damaged stuff whether it be at auction here or from uk or wherever and making their profit that way. This was always where a large portion of stock came from for many rural dealers I know of. It will be so much more now.
Taking that into consideration, a car bought from a private seller has a stronger possibility than ever before of being more genuine than the dealers car.

lifer_sean

mickdw wrote: »

I would be worried now that the small garage is left with only one route to getting stock. That would be buying up damaged stuff whether it be at auction here or from uk or wherever and making their profit that way.

Not the only route. Some franchised dealers still selling part exchange vehicles off to the trade. Car hire companies and leasing companies still selling to the trade. And of course there is a share of finance cars being sold directly to the trade without necessarily going to auction.

But yes, any indy will tell you that it is hard to get decent stock at the moment. High demand and poor supply = ????