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3—What goes on at an Auction Sale

30th August 1963, Page 40
30th August 1963
Page 40
Page 41
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Page 40, 30th August 1963 — 3—What goes on at an Auction Sale
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THERE can be many reasons why anyone may wish to purchase a " secondhand " vehicle. The main reason, of course, is usually that he cannot afford to pay the price of a new one and does not like the idea of buying under hire purchase. On the other hand, it may be that the vehicle is not wanted as a " runner ", but is required merely for the purpose of "cannibalization "—to obtain spares which are now out of production for an obsolete model. But whatever the reason, purchasers of used vehicles usually all have one thing in common—they want top value at the lowest possible price. Conversely, the sellers of used vehicles have one thing in common, too—they want the highest possible price for the article they are selling.

Unless a person wanting to purchase a used vehicle knows, through personal contact, where a vehicle that he may be interested in is being offered for sale, there are only two ways in which he can find a suitable vehicle, or at least d:scover where one may be obtained. One is through the advertising columns carried in local newspapers or in trade journals such as The Commercial Motor. The other is through the medium of various auction sales that are held throughout the country from time to time.

Although auction sales as such are one of the oldest methods of sale known (they were popular in Roman times, when slaves and cattle were offered for sale) the auctioning of motor vehicles is a comparatively new innovation. After the last War, vast quantities of military vehicles were offered for sate in bulk. From then onwards to the present time, car—and latterly commercial vehicle— auction sales have developed.

By far the largest concern in the country that holds vehicle auctions is Southern Counties' Car Auctions Ltd. Although this concern has principally, in the past, been involved in auctioning private cars, motorcycles, scooters, etc., it is now developing its commercial sales activities very rapidly indeed.

Started by the brothers David and John Wickens in the mid-1940s at Farnborough, Hampshire, using a large marquee as a selling area, the company now boasts auctions, usually held weekly, at Birmingham, Blackpool, Chichester,

Farnborough, London, Measham, Nottingham, Tunbridge Wells and Tewkesbury. Although commercial vehicles are handled at all these centres, Measham (near Burton-on-Trent, Staffs) is at present the main commercial vehicle auctioning centre. Heavy commercials are dealt with on the first Tuesday in every month, and twice a year coaches and buses are sold.

Southern Counties is now developing its original site at Farnborough as a heavy commercial vehicle selling centre which, it is hoped, will provide a used vehicle selling and buying centre catering exclusively for Southern England, So that I could see exactly what went on at a commercial vehicle auction I went to Farnborough recently. I wanted to see who was buying and who was selling; what was being auctioned; and to compare prices with those that could be expected elsewhere in the trade.

Bearing in mind the fact that it was holiday time, I was impressed by the number of people—men and women— who attended the commercial vehicle section at Farnborough.

In all, there were some 50 vehicles iffered for sale, the majority of w ere vans and omnicoaches. Ten total number were described as " vehicles, the largest of which 5-ton Austin diesel truck.

of the people attending were, I red, dealers. And all of them the trade's confidential handbook s Guide ", which they consulted me to time as each vehicle was id for—presumably to see to what ey ought to bid, in view of the 1" current market price quoted.

Fee and Form

L a vehicle is brought in for the vendor has to pay a IN.

e and complete an entry form on me states details of the vehicle's model, age, mileage, etc., and upon

e declares any known faults. He to state the mechanical condition engine, transmission, back axle, gearbox, brakes, steering, chassis pension, and to remark on the n of the battery (i.e., whether it or has recently been recharged). St also give a reserve price –a ii figure which the bidding must efore it is actually sold.

Before the auction takes place the vehicles, which are given lot numbers, are lined up and may be inspected by prospective purchasers. As a matter of principle names and trade marks of the vendor are painted out by Southern Counties. Ignition keys are left in the vehicles so that the engines can be run.

I took the opportunity of looking at some of the vehicles on offer and of talking to some of the would-be purchasers. One gentleman—he turned out to be a dealer—was systematically starting the engines of each of the vans he fancied. The first thing he looked for, he told me, was to see if, and how quickly, the oilpressure gauge light came on. He next opened the bonnet and inspected the engine. "If it has a gold-coloured engine I know it has .had an exchange engine in recently, and that goes to the credit side ", he remarked. Only when he was satisfied with the engine did he look at the tyres, the bodywork and suspension, in that order. Neither he, nor any of the people with whom I spoke, placed the slightest reliance on the mileage shown on mileometers.

left this man, who was by now con suiting his " Glass's Guide ", and approached another, who also turned out to be a dealer. The most important thing to him was, apparently, the state of the bodywork. "I can fix up the engine and all the mechanics ", he said, " but the bodywork is more difficult to fix."

Salient Points Other points that I found prospective purchasers were looking for was the amount of road fund tax still to run on a vehicle. The condition of the tyres, especially the spare, seemed important, too. But the most important thing in these auctions—whether it is a car or a lorry that is being sold and purchased— is the general appearance of the vehicle. " The cleaner they are, the better price they fetch ", one of Southern Counties' white-coated officials told me.

The actual sales take place in a large, open-ended building with a roadway passing through it. On one side is the rostrum on which the auctioneer--Peter Shepherd, commercial director of Southern Counties —and his lady assistants stand. Mr. Shepherd, with the aid of a microphone, kept up a lively commentary throughout the sale, which lasted just under two hours.

White-coated assistants drove the vehicles into the " arena ", where Mr. Shepherd informed the spectators of the condition of the vehicles, the age, and so on. He used the "Dutch auction" method of starting off at a high figure and working backwards, then eventually found a minimum figure at which bidding started.

The first vehicle put up was a mid-19,59 Austin A35 van. Bidding started at £80 and went slowly up to a final £112 10s. —about £15 to £20 below the current recognized trade price. Generally speaking, vehicles were sold well below the "official" current trade price, although it is fair to state that vans, at the present moment, are flooding the market, at least in the south, and are not in demand— in contrast with tippers, which I understand are currently "as scarce as golddust" and fetching prices well above the published prices.

Many 'Not Sold'

And so the selling went on. Many of the vans and pick-ups did not reach the reserve price given (which, incidentally, is not disclosed publicly) and were sent out of the shed marked "Not sold ". Others, whose owners were present, were consulted and, with the reserve prices dropped, were eventually sold.

Immediately a sale is made the purchaser has to pay "cash on the nail" or by cheque, by arrangement. No facilities exist for hire-purchase.

The Southern Counties' system has twoway protection which safeguards the interests of both the vendor and the purchaser. The vendor fixes the reserve price and the auctioneer can in no circumstances sell below that figure. Once the sale has been made the seller is guaranteed the purchase price by Southern Counties.

The purchaser, on the other hand, is protected by a 24-hour warranty period in which he can, if he discovers any

major faults with the vehicle that are not declared on the entry form, either reject the vehicle—in which case the sale is automatically cancelled—or negotiate for a lower figure, through Southern Counties, which takes into account the repair to, or replacement of, the undeclared defective part. Some vehicles are offered for sale "as they stand ", and it is up to the prospective purchaser to dialsover then any faults there are. No warranty protection exists in these cases.

Safeguards There are further safeguards with regard to these sales. Log books must be produced, plus Ministry of Transport testing certificates where applicable. This is a condition of sale, and if no log book is forthcoming at the time of the sale, a purchaser has the right to cancel. All vehicles sold are subject to a clearance from Hire Purchase Information Ltd. Information regarding a vehicle is sent via telex to Southern Counties headquarters at Farnham.

In common with all auctioneers, Southern Counties charge commission on any sale completed. This is paid by the vendor—which is fair enough, in view of the fact that it is he who decides what the reserve price shall be. Rates of commission are: up to £300, 5 per cent with a minimum of £5; above £300, an additional £1 per £100 or part thereof. So if a vehicle is sold for £500, then £17 is deducted for commission, plus, of course, the entry fee. If there is no sale, then no commission is charged and all the seller loses is the lOs. entrance fee. In other words, for a fee of I0s. a vehicle owner can discover the current selling value of his vehicle—and because of the circumstances in which these sales take place, this can only be a realistic figure. In this respect the vehicle auction is the stock exchange of the motor-vehicle world.

Special Features One of the special features of Southern Counties is the service offered to fleet

users. Charging only on a cost-price basis vehicles can be collected, washed, polished and valeted. They are then auctioned and, after deductions made for commission, collection and entry, a cheque is handed over to the fleet organization. Well-known bodies who avail themselves of this service are British Railways, certain gas and electricity boards, police constabularies, local authorities and even official receivers.

In an interview with John Wickens after the Farnborough auction, I learned that more and more local authorities were placing vehicles with Southern Counties for auction. Only the week before he had disposed of 10 dustcarts! "Local authorities ", he said, "need educating in this respect, They are saved the bothet and expense of calling for tenders, they don't need to advertise, and they don't have to argue about prices with local dealers."

Extensions

Before be left me to "go and sell some cars ", Mr. Wickins showed me plans oi the extensions soon to be made at Farnborough, which include the building ol two large auction halls—one for the cars and the other for the commercials motorcycles and scooters. Included in th:s £100,000 project is a fully-licencec restaurant, a testing and valeting bay, seating accommodation for all spectators large car parks and a security fence. The steelwork for the construction was due to arrive the next week and the programme is expected to be completed bs early 1964.

I left the auction at Farnborough n. much wiser man. In common with one or two of the " smaller " hauliers witi whom 1 spoke before I went there, 1 was a little suspicious about auction sales ark the people who ran them. I now know that, whether they be fleet owners Di small "used vehicle" men, all seem 1c get a very fair deal and a good service with two-way protection for both Saki and buyer.


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