Bidding fair for auction dealings

Answering all your motoring queries is Michael McAleer

Answering all your motoring queries is Michael McAleer

From James T: I've been unable to get a proper valuation on my 2002 Opel Astra from any dealer, and was wondering if I should consider using an auction. Have any advice? I'd be interested in buying there as well, if it came to it. Do I get to test drive the cars?

I take it by "proper" you mean a valuation that meets your expectations. Trust me, you are not alone. Auctions are useful ways of turning cars into cash, but they will not necessarily bring you a better price. When selling at auction, there is usually an entry charge to include your car on the night, usually between €50 and €100 depending on the popularity of the event. Then there is a commission charge if the car is sold: this can range from a set fee for cars under €1,000, to an average of about 5 per cent if the price goes above €3,000 or €4,000.

When buying, you need to be aware of the way the system works, as you will be bidding with very experienced buyers from the trade. Go along a few times and get a feel for the event, before you get involved.

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When you are ready, you will need to get a bidding number and that requires a deposit, often in the range of €250. If you don't buy, you get this money back. If you do, some of it - usually about €50 - will go to paying for the background check on the car that most auctions carry out.

We've never come across an auction where you can test drive a car before making a bid. Remember as well, that in most cases, once the hammer comes down on your bid, you've entered a legal contract and with it comes obligations. The downside is that you can't spend a few hours test driving the car before purchase, so it's important to know what to look for in a used car. If possible, bring a mechanic with you. These cars are "sold as seen". It's a quick way to make cash and most cars are good value, but there's always a risk. Good luck.

From T Doyle: Last week you published photos of a great big Porsche testing in Galway. Are they really going to build that? Do they not read the papers?

The car in question is the Porsche Panamera spotted undergoing final tests in Westport, Co Mayo. Yes, it's going to be built: Porsche released more details on the car this week. Subtle it is not. While it's a four-door, it's very much a Mercedes CLS competitor, rather than a regular saloon. With a wheelbase of 2.92 metres, that's longer than a Volvo S80 and only 10cm shorter than the new BMW 7-Series. However, you would be foolhardy to question Porsche's sales ability. After all, this is the firm that launched the Cayenne in the midst of the anti-SUV backlash.

Porsche has been toying with the idea of a four-door car for some time. Back in the late 1990s it created the 989 concept, a natural progression from the 911 of the time. If it's any consolation to the Greens, Porsche has been radically reducing its emission figures and the new car will be offered with a hybrid version. Three regular engines will be offered - a 3.6-litre V6 300bhyp, a 4.8-litre V8 400bhp and a 500bhp twin-turbo V8.

From L Roberts: If any car firms do go bankrupt, what will it mean for my car? Should I avoid any of the US-owned brands?

No. For a start, brands like Opel and Ford in Europe are doing well in terms of sales here. It's at their US siblings where the problems arise.

It's still unlikely that any of the big car firms will close down completely. Instead, if the bailout doesn't materialise - and it looks likely at this time - one of the big firms may opt for Chapter 11 bankruptcy in the US. This does not mean the firm will close, but merely use a legal protection to hold off creditors for a limited period and allow the firm to restructure its business.

That could lead to the closure of a few of the brands run by the big car firms, but the ones under threat are mostly in the US market, and not on sale here.

If, under the worst case scenario, one of the European brands does close, the likely impact would be similar to what we witnessed with the end of Rover, which went into administration in 2005. Then new cars were sold at a significantly lower price, warranty deals were offered through private insurance policies taken out by dealers, while parts continue to be available as suppliers realise there remains a sizeable used market to service.