Most are 12 to 36 months old with low kilometres. Most come with extensive maintenance history and the balance of new car warranty. Government car and corporate fleet managers have stringent quality and replacement policies. The selling process is transparent and effective.You will save thousands of dollars on the equivalent new model. Title is guaranteed. We provide expert buying tips from industry specialists Government departments and Corporate fleet management companies overseeing fleets totaling many tens of thousands of passenger vehicles, four wheel drives, light commercials and trucks. At the end of their term, these vehicles are generally sold to dealers and the general public via a number channels, outlined on this page. Most Government and corporate fleet managers adhere to very stringent purchase and sale policies, which means that along with being well maintained, there are disposal triggers such as age and use. These vary according to local policy, but the simple fact is that you can benefit from the public sales methods that are generally in place. In the case of passenger vehicles common fleet terms include 12 months or 15,000 Klm and 24 months or 40,000 Klm, 36 months or 60,000 Klm. Light commercial or ‘tool of trade’ vehicles tend to be held for longer periods of up to 4 or 5 years. Many of the vehicles sold, come with the balance of new car warranty and you can save many thousands of dollars off the purchase of an equivalent new vehicle… if you know where to look and follow a few simple tips. To learn more about how these vehicles are sold, just select the tabs on this page for more information, OR you can go straight to our directory, or custom Google search from the main menu.
Government Car Auctions allow you to compete with professional buyers bidding for cars at wholesale prices. It is possible to save many thousands of dollars on not only retail, but wholesale prices…but be warned, do your homework! Most Government and corporate fleet cars make their way to the market via either a physical auction process with live auctioneers located at contracted city and regional locations around the country, or increasingly, via online or simulcast auction where bidders attending a traditional auction compete with buyers bidding online in real time. Either way, to ensure the best chance of effective buying, you need to be aware that the majority of vehicles at auction are purchased by professional buyers, representing the major wholesale, and retail outlets. While you have an excellent chance of snagging a bargain, you must keep in mind that the responsibility for checking details, condition and price range of any vehicle at auction rest with you, the buyer.
You will not be able to test drive a government or corporate fleet car sold via auction, but you can take steps to ensure that you are getting what you think you are paying for. Auctions always provide a viewing period on the day of sale and often for a day or two prior. Take advantage of this time to thoroughly go over the car(s) that you intend to bid on. If you are not comfortable with your own assessment skills, take along a licensed mechanic or an experienced friend or relative. Review the service history and check for previous repairs and paint work. Take the opportunity to note the details of vehicle that you might consider buying, to research comparative pricing on mainstream automotive websites, being sure to allow for kilometres traveled for age, colour, accessories, condition for age, recent model updates etc. Also arrange your finance prior to attending an auction, as the fall of the hammer creates a binding contract. You will be required to leave a deposit of up to 10% of the purchase price and complete the sales process and collect car, generally within 48 hours. Most car auctions can assist with arranging finance pre-approval to a limit that will assist you in knowing that when the time comes, all is ready and you can bid with confidence. Once bidding begins, make your initial bid clear to the auctioneer. Bidding may be fast and furious, or strategic with little apparent action until the call for last bids. Professional buyers are just that…professional and know the ropes. Having inspected the car of choice, set a maximum bid price in your mind and stick to it. Be warned, emotion can take over in the heat of the moment. It is a very good idea to attend a couple of auctions prior to bidding in order to become familiar with the process. With the introduction of online and simulcast bidding, you can literally bid for, and buy a car from your office or living room. However, the same rules apply…do your homework. Still unsure? Why not contact a professional broker through this website. For a relatively small fee, they will assist with the research, bidding and purchase processes.
There are a number of dealers who specialise in the purchase and sale of ex-Government and Corporate fleet cars. Will it cost you more? Of course the dealer will expect, and is entitled, to make a margin for his expertise in acquiring and rectifying his selected vehicles to the best possible standard. He has gone through the same process of selection and bidding but, according to fairly rigorous standards of value for money versus use for age. He is a professional in every sense of the word. Otherwise, in today’s informed market, he will not survive. You also gain the significant benefit of being able to trade-in your existing car and arranging competitive finance and extended warranty programs. Consider the following. If you buy at auction, you will be competing against this type of buyer. In a competitive market, the fleet resale specialist tends to be satisfied with a high turn-over, low margin business model. The laws of supply and demand dictate this. The market, like any other is volatile and varies from month to month. The Dealer has new purchasing opportunities every week and needs to make the best possible use of his available cash flow. Most are committed to turnover and are happy to make fair and competitive margin. He will be far more attuned to the vagaries of the market, what sells and what does not, popular colours and features. He is also bound by rigorous consumer protection laws that define his selling practices. For many buyers, it may prove to be a very good option to seek out and visit a few specialty dealers and identify someone with whom you feel you can communicate comfortably. Perhaps even forming what may be a lasting business relationship. Specialty dealers have long learned the value of retaining hard won clients.
A limited number of Fleet Management companies sell direct the public, or via consignment with contracted consigning Dealers and auction houses who sell via a rigidly enforced and transparent sales and pricing process. Some also sell via a fleet vehicle tender process. Savings are to be had in this environment via pre-set dealer margins and selling processes that ensure competitive pricing. These vehicles tend to have had basic lot preparation and may come with incentives such as extended warranties and trade-in facilities along with competitive finance options.
In some states, notably Queensland and South Australia, Government fleet managers sell direct to the public via a contracted auctioneer (SA) or via a ‘retail’ shop front (QLD). Some Corporate fleet management companies also sell selected vehicles direct to the public. Does this mean the ultimate, no middle-man pricing? While sometime this may be the case, be aware that Government agencies engaging in direct sales are obviously attempting to maximise the net return on their fleet assets. Pricing is still arbitrary – and initially, at least, may be less subject to natural market forces. The exact same set of rules apply – do your homework. It is still your responsibility to make all appropriate enquiries and for the astute buyer, who monitors stock, pricing and turnover, bargains can be found.
Brokers are licensed and subject to same stringent consumer protection laws as dealers. Be warned, we are not talking about the guy at work who knows a guy, who has a friend in the business. We are referring to professional licensed brokers, who may spend years cultivating relationships with a limited number of auction or dealer sources, by introducing buyers that would never have come to the Dealer otherwise. As a regular introducer of business, the broker will most likely obtain a better price for you, than if you walked in cold off the street. It is important to establish the terms of engagement (in writing) from the outset. How will the broker derive their fee, whether flat, percentage, capped, or otherwise. How will any trade-in in be handled – most important when you consider that the real outcome of any transaction can only be gauged by the “changeover” price, as both the purchase and the trade-in price (and both sets of fees) can turn into a pea and cup game, if not defined clearly. Always think in terms of the changeover cost. Then, you will then be comparing apples with apples.