While many buyers are still reviewing the best-selling new cars of 2023 for their next buy, there are others looking to for used models coming up at car auctions. These types of sale events can be a smart place to purchase quality second-hand vehicles at potentially great prices.
Ex hire car company stock, ex government and company fleet vehicles are regularly sent to auction houses for sale. Many of these organisations have policies to upgrade vehicles at a certain mileage or age, regardless of their good condition. Providing high quality, low mileage, fairly recent models for canny buyers.
With the price of new models increasing significantly in recent years, buying second-hand can present a sensible alternative for many buyers, especially those dealing with cost-of-living pressures. But in order to be the successful bidder on the day, buyers may need to have the assurance that they will be approved for the financing required.
Jade Car Loans assists buyers to be ready to confidently bid and buy at car auctions by pre-arranging and pre-approving used vehicle finance. We have options for buyers intending to purchase a specific vehicle and for those taking a more general approach to attending a sale event. Being there and ready to make a spontaneous bid if a quality lot comes up at a bargain price.
What to Expect When Buying Cars at Auction
For those that may not have purchased at a sale event previously, it can be worthwhile to do your homework, research and preparation. Individuals looking for a personal drive and business operators can bid at sale events.
Many events are run entirely online while others can be in-person events with live online bidding as well as in the room. So buyers can bid without having to attend. Opening up opportunities to purchase vehicles in other states and territories.
Bidders will need to register and should check out the requirements for the individual sale house. Particularly note what payment is required on the fall of the hammer and when the final payment is due. When credit is pre-arranged through Jade, we can liaise between the sale house and our lender. Successful bidders will likely need to make some form of deposit-style payment on the day and buyers may need to organise this themselves.
Sale houses will advertise their catalogue online for each event ahead of time. Vehicles are available for inspection at the location in the lead-up to the event. Where possible, buyers should inspect vehicles prior to bidding and find out what checks have been done by the sale house in regard to verifying ownership etc. They may not have done a PPSR check, we can assist with that.
Note as much detail about the vehicle(s) of interest to brief our brokers when pre-arranging credit. The more information available on the vehicle can provide a more specific funding quote.
Vehicle Financing Options for Buying at Auction
There can be strong bidding for quality lots, especially by experienced, regular sale event attendees. Buyers that know their approved funding limit can have greater confidence to bid to that limit and potentially not miss out on a great purchase. Additional costs such as to the sale house and change of ownership/registration to the state department of transport department will likely apply.
Sale lots will be used vehicles, so buyers need to consider our used vehicle financing options. The same credit products can be used for new and used vehicles, but with some variations in features for used vehicles. The specific credit product most suitable for the used vehicle funding – secured or unsecured, will depend on our lenders accepting the vehicle as security. That is why we need as much detail on the vehicle as possible. Most quality second-hand vehicles can be used as security for the funding.
For private car buyers the choices are Secured Car Loan or an Unsecured Personal Loan. Commercial car buyers should consult with their accountant as to whether Chattel Mortgage, Leasing or Commercial Hire Purchase is best suited for their operation.
Competitive, low interest rates can be secured on quality used vehicles. Lenders will take into account the condition and the age of the vehicle when setting conditions such as lending limit, term and if additional collateral is required.
Applying for Finance to Buy Car at Auction
Applying for credit ahead of the event is strongly advised. With our 24 hour approval service we can handle most last minute requests. The same application process is required for credit approved before or after a purchase.
If you’ve browsed the catalogue and earmarked a number of vehicles of interest, approval may be secured based on a lending amount for that specific vehicle. Where a more spontaneous approach is taken, buyers may be approved on a general basis to a certain credit limit. In both instances, the details of the exact loan amount are finalised post-auction.
Upcoming Auction Events
Pickles is one of the most well-known sale houses and hold sales of fleet, government and other vehicles at 9.30am each Tuesday. Auto-Auctions have simulcast sales at 10.30am every Tuesday and Thursday.
If you’re interested in buying at one of these events, contact us to discuss how we can assist with arranging your vehicle funding before the start time.
To secured financing to buy at car auctions, contact Jade Car Loans 1300 000 003.
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
