Reverse Car Auctions
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Reverse Car Auctions – Better deal? Perhaps not!
Reverse car auction websites have recently become flavour of the month here in Australia. There are minor variations between them, but here are some pitfalls you should watch out for if you decide to use one of these sites:- Are you required to make a committment to buy the car before you get the final price? There are usually monetary penalties if you do not buy the car. Why pay hundreds of dollars if you end up with a bad price? Look closely at the terms and conditions. If a site requires you to send in a Certificate of Death for a refund, you know they’re keen to hang on to your cash…
- How many dealers will respond to the auction? Can they guarantee a certain number of bids? How many times can each dealer bid?
I know from over 20 years in the business that dealers detest putting in bids if they don’t get a very high sucess rate. Check how long the site has been around for. - Who runs the site? Is it a website marketing company, or someone who knows about the industry? Anyone can set up an automated system to email dealers to ask for bids, but the real strength of a car broker lies in the dealer network. Do they have solid dealer network, or are they just emailing dealerships blindly?
- Ask yourself this: If they can run a “reverse auction”, why can’t you? Virtually all dealers have websites, and emails. Do it yourself and save hundreds – if you really believe the reverse auction system works!
- How can you be sure that it is a genuine auction? I am sure there are people who never believed the real estate industry was (and still is?) plauged with “dummy bidding”. Online reverse car auctions are totally unregulated. That means buyer beware. Ask the questions up front and the answers in writing!
- In talking with dealers, I have found out that some marketing companies run these online “auction sites” and charge “membership fees” to dealers that participate. Up to thousands of dollars per month! Who pays for this undisclosed money changing hands? You do!
Make sure you ask whether the auction website charges any fees whatsoever to any dealers – including “advertising” or “membership” fees. - Can dealers “work the system”? Of course they can. The hands-off approach taken by website operators (i.e. take your cash and hope for the best) means dealers are free to cooperate between themselves to limit your discount. Many have also experienced “auction sniping”at ebay – which is one of the main drawbacks of these types of auctions. The dealer would submit his price only seconds before closing, thereby not allowing anyone else enough time to respond with a counter bid.
Testimonials
Just picked up the Madza and we are both delighted with the price and the service. Your service is brilliant ... I can't of a better way to buy a new car. On behalf of Val and myself a BIG THANK YOU!
K.J., Melbourne
A short note to say thanks for the professional and profitable service that you've just delivered to me. Getting the best price from the city and then translating to a country dealer in a small town made it a lot easier. You'd be surprised how many times we bump into each other, and taking the local personality out of the negotiation was much appreciated by both the dealer and myself.
K.P., Armidale
We weren't sure what to expect when using this service. It turned out to be one of the cheapest, stress-free and best investments we've ever made! Within a few hours of our enquiry Carbroker.com.au came up with a deal that saved us 13% off the recommended retail price of a new car. Further, by using the advice provided to members regarding the sale of our used car we were able to get $1500 more than any previous trade-in offer in just a matter of hours! This is a fantastic service that in total, put about $5000.00 in OUR pocket - not the dealer's! We'll never buy another new car again without going straight to Carbroker.com.au!
D.W., Sydney
I must say that your service is excellent - using it should be a "no brainer" for anyone buying a car. Gaining access to a sourcing professional with deep domain expertise to assist with a high value purchase for under a $100 is fantastic. Many thanks
I.H., Perth
Chris, You are a champ. Your advice on the trade-in worked a treat. I have a buyer at $14,280. A cool $2280 above the original figure! Thanks mate!
B.M., Melbourne
Delivering what you promise is the foundation of good business. I am sure that's why you sell so many cars for people like myself. Keep up the good work!
L.B., Sydney
Fast replies, great service and most importantly, extraordinary prices. Anyone buying a new car not using this service is not fair dinkum about getting the best price and probably paying too much. The service saved me thousands. Will definitely be using it again when next buying a new car and have been telling all my friends about it. Keep up the good work.
J.G., Perth
I am impressed by your professional approach with your customers. Therefore, I have already recommended your service to my collegues, friends. I would again use your service in the future when I buy the next car for my wife. I will continue support you and your dealers in the future as you all are doing wonderful jobs!
L.I.I., Brisbane
All went well with the sale - your dealer was helpful, friendly and arranged the tray with no fuss or fanfare. The whole process has been totally painless and I will (and have been) recommend your service to everyone.
R.H., Mitcham
Thank you again. I could not have asked for better service. Having been faced with unhelpful dealers it was just so easy to place a Internet request on Thursday and to be in a new car Monday afternoon, it was more than I could have asked for. I would definitely recommend the services that you provide, without hesitation.
P.H., Canberra