Motor Auctions secret revealed

 

Motor auctions have increased in popularity over the last 5 years. In times where the UK is facing severe economic crisis, people are finding it better value for money to turn towards motor auctions to acquire cars at nearly half the price that you would normally pay at a dealership or some of the scrupulous car retailers that would charge you massive amount of money. Some of these car dealer groups would actually turn to motor auctions to liquidate their excess stock while other small car dealers would take advantage of those situations to buy these cars and fill their showrooms.

In the UK, there are generally two types of motor auctions.

· Private motor auctions
The general public are normally restricted to access these car auctions and only licensed dealers, banks, local communities, Government and registered private sellers can participate in those motor auctions. Private motor auctions are withheld from the public because prices of those cars being sold there are generally at a lower price that the traditional car auctions happening round the corner.

· Open motor auctions
Open motor auctions is generally open to the general public whereby anyone can walk into the car auction house and browse for the cars they are interested in and can bid for them as and when they are brought up for the sale.

A lot of people believe that cars that are up for sale at the motor auctions may have a hidden pass or hiding some mechanical faults as generally the source of these cars are not made known to the general public. In reality, these cars at the motor auctions are generally vetted and check by the auctioneers team to check whether they meet the quality and safe standards set before they are brought up for sale at the motor auctions. By law, cars that have mechanical faults should be disclosed to the buyer to prevent any warranty being void or the buyer being handed a junk/salvage car. There are specialised motor auctions called salvage motor auctions that are held for junk, salvaged or consumer buy back cars.

Among the car that is brought up for bidding in at motor auctions house, a majority of them are of very good quality and ready to market. People very often find themselves walking to a great bargain. Latest car models with remaining factory warranty are a common find for bargain hunters.
It normally cost a lot of money for dealers to maintain an ever growing inventory and it’s a much better option and cheaper for these dealers to refer these cars to the local motor auctions for quicker and easier sale.
motor auctions are very often surrounded by cars that are categorised according to their originating source namely:-

· Off-lease
At the end of a leased term, cars are returned to a car dealership which has been appointed by the lease company to handle the cars on behalf of the lease company. In most cases, the lease company forms part of the financial department of a big re-known car manufacturer. These cars are then sent to either a central showroom or to the car auctions to be resold at a much cheaper price and accessible to the general public. Some clever car dealers will buy off these cars straight from the lease company to resell it at a much higher price that the car auction house.

Cars that have been returned at the end of the lease contract are normally well kept and maintained to a high standard. These vehicles are relatively new and have low mileage recorded on their clock and their respective log book will keep record of all the servicing and mechanical history of the cars. A recent research has highlighted that people that have bought ex-leased car have not come across any major mechanical faults and have been well cared for. Leased car contracts tend to usually be 2-4 years, so the cars are not subjected to excessive wear and tear.

At the car auctions, these cars will be tagged as “off-lease” for bidders to have an idea about the cars they are bidding for.

· Trade-in
motor auctions sometimes list trade in cars which have been part exchanged by the owner for either a newer model or a different car or make. Under such circumstances, the traders normally checked these cars, V5C log book as well as the service history of the cars to ensure the actual price of the car on the current market. The conditions of these cars vary greatly and although these cars undergo full valet service and regular checks before sending them to the motor auctions, bidders are cautioned to inspect these cars thoroughly before setting up a bid at the motor auctions. Trade-in or part exchanged cars very rarely carry any warranty and motor auctions bidders need to carry some research prior to committing themselves to the auction bid.

· Company/fleet cars
Fleet and transport companies sometimes would choose to replace their vehicles every two or so years and sometimes bargain hunters can also lay their hands on a year’s old vehicle at motor auctions. Fleet cars tend to generally work hard for the company and have adequate maintenance done of them at regular basis. Motor auctions bidders should bear in mind that these cars have either driven very carefully as executive cars or been used to as a regular transport.

· Off-rental
Car rental companies tend to replace their fleets once a year which means that a lot of vehicles make their way to motor auctions in the surrounding areas. Car rental companies rely heavily on motor auctions to sell off their used cars and maintain a clean inventory and yard. These companies will maintain their cars on a regular basis and although most cars are very basic with no extra gadgets or options, these cars tend to accumulate mileage over that one year they have been driven. At the motor auctions, these cars can be inspected for any sign of excessive wear and tear.

· Salvage
Vehicles that classify in the salvage category are those cars that have written off by insurance companies due to the vehicle being involved in accident, fire or floods, criminal damage or recovered thefts. Under such circumstances, the car is beyond economical repairs and hence the owners have been compensated by the insurance company. The insurance companies will in turn send these cars to the motor auctions to be sold to dealers or spare parts shops to be dismantled and parts sold at cheaper price.

· Repossessed
Everyday hundreds of cars are being repossessed due to falling short of their repayments, facing financial difficulty to keep up with the payments. These cars are repossessed by the bank, financial institutions or debt collectors. All the repossessed cars are then passed to the motor auctions houses to be sold at rock bottom prices. All the financial institutions want is to recover the cost of their debt. Repossessed motor auctions are held every week whereby with a bit of luck, car bargain hunters can land themselves with a great bargain.

Like any other auctions, car auctions has also its up and downs and bargain hunters should always keep on the lookout of those motor auctions happening in their area. It is very important for car enthusiast to keep some background work prior to starting the bidding. Some companies have set up txt service whereby you can send the registration number and you will get 2 text regarding the history and market value of the car under the current condition.

Find out more on Motor auctions.