How to Buy a Car at Auction
In the market for a late-model used car? Bypass the retailer, and buy from the wholesaler. The discounts are huge. You’ll get state-of-the-art automotive technology, safety, fuel efficiency, infotainment, etc., at a fraction of the new-car price.
In this special report I take you inside a public car auction, and we track the cars all the way to used car dealerships selling them around the country within days. You’ll see just how heavily those cars get marked up by used car dealers.
This report demonstrates exactly how much money you can save, by bypassing the dealer and going straight to the source.
TRANSCRIPT
Late model used cars are great value. Two to three years old, they’re significantly cheaper than an equivalent new car. And almost as good. Often, they’re exactly the same model. You even get the balance of the manufacturer’s new-car warranty.
They’re an economically rational choice for a great many Australian drivers – because the first owner always bleeds the heaviest in the depreciation stakes. After that, it’s all bargain.
You can buy a car like that privately, in the classifieds – but you shoulder a fair bit of risk if you do that. Or you can buy from a used-car dealer – which offers a bit more consumer protection, if they’re not a crook, but even an honest dealer will be very expensive.
There is of course a third option, but not too many private buyers consider it. Maybe you should. There’s absolutely no reason not to buy your next late-model used car at exactly the same place the used-car dealers shop for theirs. [TURN RIGHT]
[WIDE, TURN] Bypass the retailer, and buy from the wholesaler. The discounts are huge. You’ll get state-of-the-art automotive technology, safety, fuel efficiency, infotainment, etc., at a fraction of the new-car price.[TURN LEFT]
In this special report I’ll take you inside a public car auction, and we’ll track those cars all the way to the used car dealerships selling them around the country within days. You’ll see just how heavily those cars get marked up by used car dealers.
We’re gunna quantify exactly how much money you can save, by bypassing the dealer and going straight to the source.
Car auctions happen fast. They’re on the block, under the hammer, and gone in 60 seconds. This is where governments and corporations dispose of their fleet cars – hundreds of them, every week. Two-to-three years old, regularly serviced, and under warranty. A great, cost-effective transport option for average drivers on a budget.
Auctions are absolutely open to the public – you’re welcome to shop here, and enjoy exactly the same discounts as the dealers.
This Toyota Yaris sold for just $10,400 at the auction. I tracked it down at a dealership in Tamworth, in central northern NSW 10 days later, on the lot for $14,990 – that’s a 44 per cent mark-up. Or a $4600 potential discount for you, at the auction.
This Holden Cruze moved to a dealership just a few suburbs away, and went up by more than $4,000.
Camry Hybrid. The options are: pay $14,700 at auction – or $20,990 – a 43 per cent premium – a few days later at a dealership in the bush.
And if you want an affordable SUV, well, this Captiva would’ve cost you just $16,100 at auction, but retail, on the dealer’s lot, the price surged to a staggering $22,990. That’s almost $7 grand more.
And this Hyundai i30 wagon also jumped more than 40 per cent in price between the auction and the dealer’s showroom. Under the hammer for $13,900, and onsale at the dealership in South Australia for almost $20 grand.
So, how much can you really save? In this investigation I tracked 14 quality, late model used cars from that auction in Sydney’s south-west to 14 different dealerships in three states. The average price paid at auction for those cars was just over $16,000. The average retail price of those exact same cars on the dealers’ showroom floors was nearly $24,000. That’s a mark-up of just under 50 per cent.
I’m not saying car dealers don’t deserve to make money. They do. Absolutely. Everyone in business deserves a fair shake for their efforts. But, by the same token, you don’t have to put anyone else’s kids through private school. You absolutely owe it to yourself, and your family, to save money wherever you can. You’re not breaking, or even bending, any rules if you buy your next used car at auction. You’re just making a smart consumer choice, and saving money. And the average saving here was almost $6000 – a considerable sum. Especially when it remains in your bank account. That’s how much you can save.
Auctions happen fast. They’re loud and they’re manic. They can be confusing and confronting. And that’s why, in part two of this report – I’ll hand you Auctions for Dummies, on a plate, stuffed with pine nuts, wrapped in prosciutto, with a red wine reduction. Irresistable. The step-by-step guide to driving away with an absolute bargain, without getting burnt – in this crazy, chaotic auction environment.