ONE HUNDRED repossessed cars went under the hammer in Kildare at the weekend in the shape of secondhand BMWs, Mercedes s and Audis.
Up to 500 people attended a car auction held on Saturday by Merlin Motors in Naas, Co Kildare, to bid on cars being sold on behalf of a single financial institution. The majority of the vehicles were repossessed after their owners failed to finish paying off hire purchase agreements. A small number came from garages that had closed down.
Though there were some bargains, competition for many of the cars was fierce, enhanced by the rapid fire auctioneering style and by external competition from online bidders.
Among the most popular vehicles was a blue automatic 2006 Mercedes C200 CDI with cream leather interior and lots of extras that sold for €15,400 and a grey diesel 2004 BMW X5 auctioned for €14,900. A seven- seater 2008 Chevrolet Captiva, also grey and diesel, was first out on to the auction room floor and was snapped up for €17,100.
Not all the cars on offer were from the status symbol end of the market. There was considerable interest in a 2008 Ford Focus which sold for €10,800, a 2006 Nissan Note that went for €4,900 and a 2008 black Kia Ceed which sold for €9,200.
From the specialist end of the market, a silver 2005 MG ZR sold for €3,000.
Mileage on the cars ranged from 20,000 to 200,000, though the company did not guarantee odometer readings.
Moreover whereas engineers’ reports were provided for the vehicles, the fine print in the terms and conditions stipulated reports were “a guide to assessing the car only” and not a guarantee of condition.
Cars are purchased “sold as seen” so the auction system is a buyer beware situation. Although there are opportunities to examine cars in advance of the auction, vehicles cannot be test-driven. A guarantee is provided to customers that a car is not stolen, is not an insurance write-off or is not the subject of an undischarged hire purchase agreement.
But it is the customer who must pay for this, with an indemnity fee of up to €180, in addition to the sale price.
Purchasers also pay a buyers’ fee of 5 per cent to the auctioneers.
The additional costs eat into the bargain.
The car auction business has changed dramatically in the last few years, according to Merlin Car Auctions managing director David Byrne.
Three years ago, 95 per cent of people attending car auctions were dealers. But now up to 65 per cent are private individuals; and 18 per cent of bidders place their bids online.
“People still have money, but they are careful. They are going an extra mile to seek value,” he said.
Visitors to Saturday’s auction were from all around the country.
Michael and Geraldine Barry had made their first trek to a car auction from Cork with their 11-year-old daughter, Melissa.
Shane Keville and his son, also Shane Keville, travelled from Leitrim.
They were impressed by the Mercedes C200, which retailed for about €45,000 when it was sold new.
John Murphy, from Newcastle, Co Kildare was pleased to have bought a 2007 Opel Astra for €8,700.
“It would have cost €10,500 online,” he said. He wasn’t worried about its condition.
“It’s a finance car, it’s probably fine,” he said.
Three men from Abbeyleix in Laois, who were coy about being named, thought the cars on offer might be a little too expensive.
“There’s a lot of dreams lost here,” one of the prospective buyers observed.
