Vehicle Buy Back Schemes
Vehicle buy back schemes can save you a considerable amount of money in comparison to long term rentals.
However, you need to plan this carefully and cautiously check the vehicle you propose to purchase, or you could ultimately spend a lot more than you initially expected.
Buying a reasonable second hand vehicle at the commencement of the holiday is usually much less than hiring a vehicle for a given period. However, you must have an agreement with that dealer stating that they will buy back the vehicle for an agreed price.
If your proposed escape is likely to last more than two weeks then a buy-back scheme may offer a more cost-effective and appropriate option.
Some local and overseas visitors like to use this system as a way of avoiding the problems one may experience trying to resell a second hand vehicle at the end of a holiday. The advantage of the buy back scheme is that you avoid running out of time to sell, and losing money on the sale of the vehicle; as you know what you will get as a minimum. So they are popular with people going on extended driving holidays.
The critical element is that you are required to redeliver the vehicle in an agreed condition.
So is also crucial you deal with reputable dealers and that you check the vehicle, to make sure it is in the agreed condition, before you take it away.
Many buy back schemes provide for a buy back price of 50% of your original purchase price if you have the vehicle for up to eight weeks; 40% for up to six months; or 30% for up to 12 months. Some organisations may not require you to pay the purchase price upfront. In this case they generally require you to give them a bond that is less than the value of the vehicle, and you can usually use your credit card. You would then pay a user fee for any period of up to six months (longer periods are calculated at pro rata rates, shorter periods still cost the full six months fee).
This is similar to a long-term rental arrangement. It can be cheaper than a normal rental; because although you pay for maintenance and repairs, there is often a limited 5000km warranty of the vehicle. This may be extended to the whole trip for a further fee.
Please ensure that the vehicles are properly equipped with tools and basic spares. Keep a list of inventory and make sure to check everything off the list before you leave. You may be able to hire a full set of camping gear (no sleeping bags) and, for the 4WDs, recovery equipment (high-lift, jack, hand winch etc).
MOTOR TRADE AUCTIONS – VEHICLE BUY BACK SCHEME
Visit to Motor Trade Auctions at 51 Prindiville Drive, Wangara 6065 in Western Australia; or phone (08) 9408 0900, Mobile: 0407 221 196, and speak to Michael Bruno.
The advantages of purchasing a vehicle with a guaranteed buy-back price are:
1. You will know exactly how much you will get back for the vehicle. (will help with budgeting)
2. You will be able to use the vehicle, whilst enjoying your holiday, for the longest possible time.
3. You will not have the stress of trying to sell the vehicle.
Please ensure that you give them enough time to find a vehicle that is suitable. The system requires them to buy-back the vehicle you purchase from them:
- at 50% of your purchase price if you bring the vehicle back up to 8 weeks from the date of purchase;
- at 40% of your purchase price if you bring the vehicle back more than 8 weeks but up to 6 months from the date of purchase; and
- 30% of the purchase price if you bring the vehicle back more than 6 months but up to 12 months from the date of purchase.
Conditions apply and the most important one is that the vehicle must be returned in the condition it was in when you purchased it.
1. Choose a vehicle from our current buy back stock list.
2. Digital photos of the chosen vehicle will be taken (front, rear and interior).
3. A 100-point safety check will be undertaken to determine the pre-sale condition of the vehicle; all warrantable items will be fixed and the cost of 100-point safety check to be borne by purchaser (“initial check”).
4. When you present vehicle for “buy-back” at the agreed price a 100-point safety check will be undertaken to determine the condition of the vehicle. The cost of this 100-point safety check will be borne by Motor Trade Auctions (“final check”).
5. Following initial and final check comparisons, Motor Trade Auctions will determine if any repair works are required restore the vehicle to its initial condition. If repair work is required the cost will be deducted from the buy-back price.
Other Issues to Consider
Unfortunately it is very difficult to arrange finance for non-Australian residents. For Australian residents wishing to pursue a finance arrangement, please telephone us to discuss.
Stamp Duty and Transfer of Licence
Motor Trade Auctions is happy to, on behalf of the purchaser, arrange all the necessary paperwork for transfer of licence and stamp duty fees. The purchaser is liable for all fees applicable. Stamp duty fees are currently 3% of the purchase price, plus transfer fees $14.20.
It is strongly recommended that you that you ensure the vehicle remains registered in the state you purchased it from. Allowing the vehicle to become unregistered will affect the value of the vehicle and your buy-back price. See one of our helpful sales staff for further explanation.
To assist the purchaser we are pleased to provide the telephone contact numbers for the following major insurance companies:
- Allianz 13 10 00
- HBF 13 34 23
- Western QBE 13 13 03
Motor Trade Auctions provides a statutory warranty on most vehicles. Please see details below. Extended “all States” warranties are also available on all vehicles.
A motor vehicle is covered by the terms of a statutory warranty under the Motor Vehicle Dealers Act 1973; because the cash price (inc GST) paid is $4,000 or more, the vehicle is not more than 12 years old, and has travelled not more than 180,000 km. The length of time the vehicle is covered under warranty is determined by the age of the vehicle and kilometres it has travelled at the time of sale.
Where a vehicle is:
- not more than 10 years old and has travelled not more than 150,000 km at the time of sale, warranty is for 3 months or 5,000 km, whichever happens first; or
- between 10 and 12 years old or has travelled between 150,000 and180,000 km at the time of sale – warranty is for 1 month or 1,500 km, whichever comes first.
Vehicles not covered by a Statutory Dealer Warranty:
A vehicle is not covered by the terms of a statutory warranty under Part III Division 4 of the Motor Vehicle Dealers ACT 1973. This is because of one of the following factors:
- the cash price (inc GST) paid in the case of a motor cycle is less than $3,500, or in the case of any other vehicle is less than $4,000; or is more than 12 years old, or has been driven more than 180,000 km
- the vehicle was sold at auction on behalf of a member of the public
- the vehicle is excluded from the statutory warranty under the Motor Vehicle Dealers Act 1973.
The following vehicles are excluded:
- A caravan built to be towed by a motor vehicle.
- A motor cycle: built for off-road use; and not built to carry any passengers.
- A motor vehicle: built to be used primarily to carry goods or materials used in any trade, business or industry; and having only one row of seats.
- A motor vehicle: built to be used primarily to carry people; and that seats more than 9 adults (including the driver).