Car Auction FinanceApril 19th 2020
Car Auction Finance Australia
Bidding at a car auctions in Australia can save you thousands on your next car, but only if you have the available finances to make a purchase. Due to the massive demand of discount priced vehicles, the one you’re interested in may only be available for a matter of days. It is therefore considered best practice to gather funds or pre-approval before auction day.
Many variables come into play when you are looking to finance a vehicle. Here are some of the basics:
How to Apply
Many auction centers have their own internal finance department to help buyers. You must pay the auction house in full after you win a vehicle, so it is recommended that you have financing approved prior to bidding.
As per Australian standard finance practices, you will be asked for income and outgoings expenses, as well as presenting proof of anything required, eg. pay slips. If you’re not sure if the auction centre offers finance, either make a call or stop by their front desk to enquire.
Credit checks and approval
As with all finance companies, it is considered due diligence to do a credit check for all potential customers. This does not mean you can’t get finance if you have a less than perfect history, but it may affect your chance of getting approval or the low interest rates. Interest rates with most car finance companies are very competitive and most times lower than the banks.
The financer will usually verify your assets and assess your current financial situation before giving you the green light. Depending on how prepared you are with all the required documents, approval can take 24–48 hours. The main reason finance is held up is related to having not provided sufficient documentation.
Keep in mind, that after winning an auction you are given only a couple of days to make full payment before the sale falls through and your deposit is lost. You may also be charged a late fee should payment not be made in time. It is advised to check the rules of each auction centre as some are tougher than others.
Car auction finance is available at most major auto auctions in Australia. This includes finance for other vehicles in stock like trucks and motorcycles.