In a sign of the times, Porsches and BMWs are sold off as a high-end car dealer goes under, writes Rosita Boland
ON SATURDAY in the packed forecourt of Orwell Motors in Walkinstown, Dublin, most members of the public were eagerly examining the Mercedes, BMWs and Saabs that were due to sold in a receivership car auction.
However, Dubliner Sandra McQueen was staring mesmerized at the large Gucci handbag hanging off the arm of a potential female buyer. "Some of the handbags here are worth more than what I can afford to pay for a car," she confessed.
Ms McQueen had come to the auction looking for a bargain. Unlike most of the others there, her budget of €3,000 was modest, and she was after one of the very few lots of 00- and 01-registered VWs and Peugeots.
Most people were focusing exclusively on the prestige cars: the 05 BMW 630 Sport, the 06 Lexus IS220, the 06 Mercedes E200 and others.
There were a total of 55 lots, most of them high-end cars. Orwell Motors, a long-established Dublin car dealership specialising in expensive cars, went out of business at the end of last month.
Bank of Scotland (Ireland) appointed Paul McCann, of accountancy firm Grant Thornton as receiver, and it carried out Saturday's auction. It was a condition of the auction that all payments had to be made in full, either by bank transfer or bankers drafts, so all transactions on the day were in effect cash.
It was easy to spot the professionals. The expressionless car dealers worked in pairs, took notes, and walked around the cars like farmers examining cattle. They opened bonnets and scrutinised engines with detachment. You could almost see the euro signs in their eyes.
The private buyers, on the other hand, were mostly couples simply dreaming of driving posh cars, like Maurice and Mary Quinn, up for the day from Newtownforbes, Co Longford. They were interested in the 06 BMW 320 and the 06 Lexus IS220, "but only if they're giving them away," stressed Mr Quinn.
Friends and software professionals Kumar Rubra and Ven Ramachandran. both from India, were not surprised that Orwell Motors had gone out of business. "These guys have been caught out because they were high-end. There's no money now in the secondhand market with the VRT [vehicle registration tax]," Mr Rubra commented. His friend was there to try to buy a Saab, BMW or a Lexus.
"It's not going to stop here," declared Bobby Bolger, from Naas, Co Kildare, who was looking for a Mercedes. "More dealers are going to go bust. Secondhand cars have long been overvalued in this country. Cars will have to come down to more realistic prices.
"We're in a recession now, and car sales are going the way of property sales," he added.
The car attracting the most attention was a black 2000 Porsche Boxter 3.2 convertible. Men, in particular, circled it with the frequency of goldfish doing laps, while their female companions stood aside, looking either indulgent or worried.
It was the only car in the auction that one Dublin couple had come to bid on. "We're only interested in one car. The Porsche, if it's a good deal," said the woman firmly. They declined to give their names.
"You can't use my name, because I work in financial services, and I can't possibly be seen to be talking about a recession," explained the man. Isn't that why we're here?
The auction started bang on 11am, by which time more than 130 people had registered as potential bidders, with many more present as onlookers. Bidding was consistently brisk, and it took less than three minutes to reach a selling price of €45,000 for the 05 BMW 630 Sport. It took longer than that to sell a 2000 VW Polo, which went for €2,300.
Other sales included €33,000 for an 06 Mercedes E200; €24,000 for the 06 BMW320 DSE; and €22,000 for an 06 Saab 9-3. The Porsche went for €17,500. The man from the financial services was outbid.