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
I know what you mean when you say 'buyer's remorse'. I've had it each time I bought a new car except this time. It's a great feeling to a) get a great price b) avoid the huge stress. Seeing things from 'the other side' has made me a convert: This is the way to buy a car! Thanks for a great business.
M.W., Perth
Thank you very much for an excellent service. I will certainly recommend you to all and any prospective car-buyers I come across in the future.
M.T., Melbourne
Don't know how you achieve your prices but it certainly makes a difference, avoids the hassle of dealing with salesmen and has been excellent value for money. Will definitely recommend your services to family and friends.
A.J., Melbourne
All I wanted was to buy a car with no hassle and at a decent price. I was very happy with your service and I will use you again in the future. I guess that says it all, doesn't it?
A.M., Brisbane
It is a sorely needed service as we have had nothing but stress and grief with the dealers we have approached ourselves.
J.F., Melbourne
Just to let you know that we took delivery of the new Mazda SP23 last night with the customer service from the dealer first class. I would like to take this oportunity in thanking you for your help, professional advice and most important getting me a great deal on the Mazda SP23 that I would never have achieved.
C.A., Perth
Just a note to say a HUGE THANK-YOU for your services. You were very prompt in replying, and saved us $3000 on the purchase of our new car (almost 10% on the total cost of the car). With a young family, that's a huge saving for us. Thank-you again.
K.S., Brisbane
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 drove around in my old car most of today and decided that I really had enough of it. Your quoted price of $18,200 is at least $1,000 cheaper than any of the others; I have been to three different dealers and haggled all day long.
S.L., Brisbane
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