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
Thanks for the quote. I am kicking my self slightly. In the weekend I went to my local dealer to test drive the car and was offered exactly my spec with 1500km on the clock. 3 months old for $55K (the GMs car). I had to make a call on the spot because another chap was also looking at it. I thought this would be pretty hard to beat so i went for it. If i had waited i guess i would have an absolutely new car and with 12 months worth of rego not 9. We live and learn. Next time. Thanks and regards
W.D., Sydney
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
I was pleasantly surprised when I saw the discounts of RRP that the dealer was putting down, more than made up for the cost of the fog lights and the paint protection which I optioned in! I signed the dotted line and bought my first brand new Hyundai. I will take delivery less than a week after signing, which I find quite impressive.
S.B., Sydney
This is the very first time that I have ever bought anything via the internet, or ever done any business over this means, and so I want to specially thank you for honouring my trust. Yet you also did much more than that, you got me a far bigger saving, (over twice that which I imagined possible), with a good and reputable dealer, delivered at our nominated timing, and you displayed great patience with myself through the process. This is my wife's very first new car and she is absolutely delighted with it. So much so, that she has not even allowed me to have a drive of it yet. And so I guess we have all been winners, haven't we? And what could be better than that?
K.S., Brisbane
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
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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
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 haven't met you in person but felt like I knew you for ages. I really appreciate for the great help and assistance right through the process. I got my car yesterday. I Thank you once again for the best customer service. I will call you later. I just can't believe that computer technology and modern technology has really made the process quicker than I ever thought without compromising on service.
W.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
Negotiating a deal with a professional car salesman is tough and time-consuming, especially if you don't have a lot of local experience. Having someone act on your behalf creates an advantage that can't be ignored, and I have to say the $4,900 saving that I achieved off a $43,300 vehicle via Carbroker.com.au is definitely worth the minimal cost of registering an interest at the Carbroker.com.au web site. Thanks to Chris Wilson for this much-appreciated service.
C.P., Sydney