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
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
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
I picked up my new Nissan Patrol on Friday afternoon. I would like to thank you for all the work you did on my behalf and the fantastic price you secured my new car for. It was so good not to have to do the rounds of the car yards and try to beat car sales people at what they do best. Your website was also great with tips on how to sell my other car as well as all the other information available on it. The dealership was very professional as well and the car was ready as promised and in a very nice condition.
B.W., Queensland
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
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
I just want to say thank you for all your effort in getting me a good deal on the car. I managed to save close to $6,000 from the initial quote given to us by a Toyota car dealer. I am very happy with your service and will surely recommend you to all my friends who are keen to buy a new car.
N.A., Victoria
I received my new car last week which was the fisrt time I set foot on a car lot during this and it was one of the most painless experiences! I have and will continue recommending your services to all my friend and colleges. Thanks for the prompt, professional service and the huge savings.
C.J., 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
I've been with the RACV for over 10 years. I just didn't realise what a premium I was paying for the service. Going with your car insurance recommendation and the roadside assist is saving me several hundred dollars every year!
C.A., Ballarat