Gone in 60 Seconds

Part 5 of PHer V8mate's guide to the auction scene

By V8mate / Monday, 22 June 2009 / Loading comments

Boxster S: Sold!

Last week we looked at how considering a higher mileage car could save you thousands and leave the professionals stepping away from vehicles which they might find difficult to sell. How else can you take advantage of dealers’ weak-spots? One thing to consider is the cost of optional extras when the car was new. When you buy yourself a new car, the salesman will be keen to get you to sign up to every possible option. These are areas of huge margin for the manufacturers and soon send the retail price soaring. What they don’t tell you, however, is that most optional extras return very little when you come to sell. Used car salesmen are taught that cars with lots of options are easier to sell, rather than any more valuable. If you have ever part-exchanged a car, you’ve probably been on the wrong end of such a mindset.

Dealers will, therefore, want cars with the highest possible specification in order that their salesmen can sell them on quickly. Remember, a dealer doesn’t make his profit until the car is sold! So if you’re not to fussy about certain options, you can pursue lower spec cars, safe in the knowledge that less dealers will be after the same vehicle. One ‘extra’, however, stands head and shoulders above the others in terms of its perceived value, and that is in-car satellite navigation. For some reason, this option retains almost its entire value, even in cars which are several years old. Hearing the auctioneer announce that he ‘has the satnav DVD for the car’ is guaranteed to get buyers bidding. And the price difference for cars with and without satnav? For some marques it can be as much as £1000-1500. Lexus IS models, as one example, will see 90% of buyers turn their noses up if they see no ‘big screen’ on the dash.

TT: Sold!

So, how can you turn this to your advantage? Well, buying yourself an aftermarket satnav, assuming you can live with it not being ‘built-in’, can bring huge monetary benefits. For me, factory navigation systems offer no benefit other than their tidiness. They are often hopelessly out of date, even when the car is brand new, and manufacturers often charge upwards of £300 to provide update disks. A high quality third-party device need cost no more than £150 with annual updates costing as little as £50-£75. And you get to save, potentially, £1000 on the purchase price of your car.

The last report took you as far as having made the successful bid on a car. So what happens next? Your bid price will have attracted a ‘buyer’s premium’. These vary between auction companies and most have different rates for trade and private buyers. Example rates (including VAT) for private buyers, for vehicles sold at the following prices at my local Manheim site are:

£5,000-£5,499 – £244

£8,000-£8,500 - £276

£10,000-£10,500 - £297

£15,000-£15,500 - £348

£25,000-£25,500 - £498

Having settled the bill with your debit card – in order to avoid payment fees - a good first step would be to call your insurance company and have the car insured with immediate effect. The last thing you want, having put so much care into choosing your purchase, is for some damage to occur in the auctioneer’s busy yard and you find yourself the proud owner of damaged goods.

Your next problem is one of getting your car home. Cars at auction are very rarely taxed, so even with insurance ‘instantly’ arranged by phone, you will have to wait for a paper copy of the cover note to arrive before you can visit the Post Office. On the flip side, many auction houses charge storage fees after 24/48 hours so you’ll want to claim your car as soon as possible. With ANPR devices actively monitoring our highways these days, the option of arranging insurance and then quickly nipping your new car back to the safety of your drive really isn’t an option.

Passat: Sold!

Fortunately, the larger auctions have realised this and, always on the look-out for a revenue stream, offer delivery services. In fairness, considering how steep some of their charges are, I have found delivery charges to offer good value considering that they fulfil a door-to-door service and save you from any legal issues along the way.

Another good mix of prices with this report; hopefully there’s something to interest everyone. This week’s tip: Volkswagen Passats – they have enjoyed sound residuals since launch, but I’m starting to see some good value motors fall under the hammer. Next week we have a ‘special’ for you as the report comes from the jalopy end of the market, so have a dig around under the sofa cushions and we’ll take a look a look at what a tiny budget can turn up for you. To see this week's auction picks, click on the comments thread below.

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