Buy­ing clas­sic cars at auc­tions

New Zealand Classic Car - - Local Market Report -

You will prob­a­bly know peo­ple, whether or not they’re in­vestors, who get ex­cited by clas­sic car auc­tions. But is it wise or even prac­ti­cal to pur­chase clas­sic cars from auc­tions?

In New Zealand, nu­mer­ous car buy­ers line up to bid and pur­chase clas­sic cars from auc­tions, be­cause they think that there must be many perks and ad­van­tages, in­clud­ing that it’s a good day out.

Ad­van­tages and dis­ad­van­tages

Clas­sic cars sold at auc­tions are usu­ally very cheap com­pared with clas­sic cars sold at rep­utable clas­sic car deal­er­ships. This is why peo­ple with a lim­ited bud­get al­ways fall into the queue at al­most every car auc­tion in the com­mu­nity.

Un­for­tu­nately, that’s about it on the ad­van­tages front, re­ally. The dis­ad­van­tages, on the other hand, are more nu­mer­ous. Let’s take a look at eight usual is­sues associated with buy­ing a clas­sic car at an auc­tion.

1. Most clas­sic cars at auc­tions are cheap not be­cause they’re bar­gains but be­cause they are usu­ally worn-out cars that can’t be sold any­where else.

2. Most clas­sic cars at auc­tions are not in good me­chan­i­cal con­di­tion. Some of them have just been re­fur­bished and made to look good and func­tional for the auc­tion, but when the buyer fi­nally uses the car, flaws and dam­ages start ap­pear­ing.

3. Most or al­most all cars sold at auc­tions are not nec­es­sar­ily cov­ered un­der the Con­sumer Guar­an­tees Act, Pri­vacy Act, or Fair Trad­ing Act, un­like ve­hi­cles sold by well-es­tab­lished, rep­utable clas­sic car deal­ers and dis­trib­u­tors.

4. There is a pos­si­bil­ity that you may be ac­quir­ing a ‘hot’ car — a ve­hi­cle that has been il­le­gally smug­gled into the coun­try, or has been stolen — or which can’t be reg­is­tered in New Zealand and then sold on the mar­ket.

5. In a clas­sic car auc­tion, there are no guar­an­tees that you’ll end up with a true bar­gain. You need to know what you’re look­ing at, what it should cost, and how to spot a le­mon quickly, be­cause, at most auc­tions, you can­not drive a ve­hi­cle be­fore you bid on it.

6. It’s not im­pos­si­ble to find good cars at auc­tions, but one can al­most take it for granted that most of the in­ex­pen­sive cars pur­chased at an auc­tion will need some work done to them, maybe even a lot of work. And when you do, in fact, find a good car at an auc­tion, you’ll al­most def­i­nitely not be the only per­son bid­ding on it — so you are likely to end up with a very ex­pen­sive bar­gain.

7. Keep in mind that a shiny ex­te­rior tells you very lit­tle about the ac­tual run­ning con­di­tion of a car, or its his­tory, so you need to be very fa­mil­iar with the type of car you want to bid on.

8. Fi­nally, buy­ing a clas­sic car at an auc­tion means not only that you prob­a­bly won’t be able to test-drive it but also that you may not be able to per­form a thor­ough tech­ni­cal in­spec­tion of it or ver­ify the main­te­nance his­tory and prove­nance. If you do end up

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.