Motor Car Auctions

Businesses specialising in sales via an auctioning process, whereby the seller sells a commodity (a car, in this case) by offering it for a bid.

Buying at an auction is often cheaper than buying privately or from a licensed motor car trader, but it carries more risks and is best suited to people who know about cars. Generally, the auction house will not let you take the car for a test drive – so you should inspect it thoroughly before bidding. If you buy a used car at an auction, you will not have the same statutory warranty, cooling-off period or Certificate of Roadworthiness you would receive when buying from a licensed motor car trader.

If you do not buy the car during an auction but ‘off the floor’, you are entitled to the usual benefits offered by licensed motor car traders under state law. A car sold at auction may be sold without a Certificate of Roadworthiness. If the vehicle is registered, it is your responsibility to obtain a Certificate of Roadworthiness. You must provide your state licencing authority with the certificate within usually 14 days of buying the car, in order to complete the transfer of registration.

If a car bought at auction is not registered, it is the buyer’s responsibility to arrange a vehicle inspection and obtain a Certificate of Roadworthiness. Dummy bidding is a false bid made up by the auctioneer, or a bid accepted by the auctioneer from a non-genuine bidder from the crowd. This practice is banned in all states and territories of Australia. An owner of a motor vehicle or their representative cannot bid, but the auctioneer is permitted to make a bid on the vendor’s behalf.