Used-car auctions can save you 25% or more on the cost of a car. However, the risks of buying a lemon can put many people off this cost-effective option. Your Money Magazine investigated car auctions in Australia to find out whether they really are a safe option for car buyers.
Taking nine examples of the most popular cars in Australia, Your Money Magazine compared their average dealership prices against auction prices. Your Money Magazine managing editor Jackie Pearson said the results indicated substantial savings were possible.
“We compared average dealer prices, pre-auction ‘buy it now’ prices listed prior to bidding and the actual sale price at the auction, and found that buying at auction can save you on average 10% off the price of buying at a dealership,” said Pearson. “If you pick a specific car wisely your savings can be much higher.”
However, Pearson warned that buying at auctions can be risky for the inexperienced buyer.
“When you buy a car at auction, there’s no cooling-off period or statutory warranty, so if anything happens to the car after it leaves the lot, it’s usually the buyer’s problem,” said Pearson. “There are also additional costs like registration, auction house fees or possible repairs, so you should make sure you have a clear idea of the market value of the vehicle before you make a bid.”
Pearson said the key to being a smart buyer is to do your research.
“Cars are sold at auctions for any number of reasons – they might be government vehicles or repossessed. It’s best to ask why the car you want is being sold this way,” said Pearson.
“As long as you do your research and prepare yourself, come auction day you could drive away with a real bargain,” said Pearson.
Your Money Magazine
Your Money Magazine is for all Australians looking to increase their personal wealth and achieve the lifestyle they desire. Your Money Magazine’s key focus is to educate the Australian public about money management by providing down-to-earth, easy to comprehend content, detailed product comparisons across a range of categories, and recommendations from some of the country’s leading industry experts.
Combining in-depth research and product comparison tools with shrewd financial education materials, Your Money Magazine takes a unique place in the Australian market allowing readers to not only compare existing products but to educate themselves and take decisive action all in one place.
Find us online: www.yourmoneymag.com.au
Follow us on Facebook: www.facebook.com/YourMoneyMagazine
P: 02 8437 4726