Buying a used car at an auction

Going once, going twice, SOLD!!!

Buying vehicles from an auction is not a new thing at all. In fact it`s what certain second- hand car dealerships have been doing for a while to get new stock on to their show room floors for a cheap price. They then add a nice sized profit on to the vehicle and then sell it to you!

So how can you benefit from a second hand car auction? Well in a number of ways really, firstly buying a vehicle from an auction can indeed save you a lot of money. How much money depends on many factors, but generally members from the public make an average saving on certain vehicles of about 15 percent. There are some cases where people do get amazing deals and save as much as 40 percent on a vehicles retail price, but bear in mind this doesn't always happen. However there are deals to be found at auctions so it`s worth-while going to check out a few even if you don't bid on anything at first.


How does it work?

Most vehicles you see at an auction have usually been repossessed by the bank due to non payment from the vehicle owner. The sheer variety of vehicles may just surprise you!. When you go to an auction there are a few things you need to bear in mind even if you don't drive away in a vehicle. You will need to register with the auction company before you are able to place bids on vehicles. You don't need to register if you are just going to observe the auction and get a feel for how things work, which is what I would recommend first time visitors should do. To register at an auction you will need to take a refundable bank cheque or make a credit card deposit to the auction company. This amount can be any where from R3000 to R5000 depending on the auction company and is refunded to the customer if he or she does not purchase a vehicle at the auction. This deposit will not be refunded if you make a winning bid and then back out of the deal, so make sure you want the car before you raise your hand. Please note that most auction companies will not accept the deposit in cash or as a personal cheque. Further more you will need to provide proof of identity in the form of your id or drivers licence.

Vehicles that are on auction are not sold with a warranty and are sold "as is". This includes the vehicles standard motor plan which will no longer be applicable, however if you do purchase a vehicle at an auction that has low mileage and is a certain age you may be able to purchase a motor plan from the vehicle manufacturer. You will also not be allowed to take the vehicle for a test drive but in most cases you can request the vehicles key before the auction starts so that you can have a look inside or under the bonnet. You may also be allowed to start the vehicle to confirm that it is in fact in running condition. Remember to check the vehicle out as thoroughly as you can, you may even want to take a mechanic friend with to give his expert opinion as to whether you will be bidding on a "rotten apple" or not.


Please bear in mind that vehicles sold when the hammer drops, exclude Vat(14%) and may also be subject to a handling fee, so budget accordingly with this in mind. I will give you an example of how this works below.

Vehicles bidding price: R50 000
Handling fee: eg. R1750
Total thus far excluding vat: R51 750
R51 750 + 14% Vat
=R58 995

So if the hammer falls on your bid of R50 000 you will end up paying R58 995 so please bear this in mind when you budget, if the most you have budgeted for is R50 000 don't let the hammer fall at R50 000 or you will be over your budget by R8 995.

Payment for your winning bid must be completed one day after the auction. You must also collect the vehicle one day after auction or you will be liable for an extra storage fee. Auction companies do not do financing and will not accept cash payments on their premises. Payment can take the form of either a guaranteed cheque or EFT payments.


So you want to see what`s what when it comes to vehicle auctions?. I will list a few of the big reputable names in the auction industry that myself or friends have successfully used in the past.

www.burchmores.co.za/
http://www.blogger.com/goog_1819814427
http://www.blogger.com/goog_1819814427
https://wbo.wesbank.co.za/AuctionsWeb/index.jspx


So remember there are many deals to choose from, but do your homework, budget correctly and make 100 percent sure about a vehicle before you raise your hand to bid and you might just drive away in a great deal.
Happy bidding :)

Used BMW E36 M3 review

So performance is what you are after but your wallet isn't performing so well?. Don't worry there might just be a sports car out there for you after all.

Introducing the BMW E36 M3

The BMW E36 M3 entered the market in 1992 and stayed in production until 1999. It was initially powered by a 3L straight 6 motor that produced 210kws of power, making the M3 a truly exhilarating drive. From September 1995 the coupe and sedan versions of the M3 went under the knife and received an upgraded engine. A 3.2L straight 6 unit going by the name of S50B32 (More on this legendary engine later) producing 236kws. Among the other changes in 1995 were clear indicator lenses, new wheels and a 6 speed manual gearbox.

For the purpose of this article I will be focusing on the sedan 3.2L evo(1995+) version of the E36 M3. Being a performance vehicle most of your attention will be on well.....its performance when you are considering buying one. The heart of this vehicles performance is it`s legendary motor, so lets have a look at what makes this beast tick and what are some of the more common faults found on second hand M3's.

The motor in the evo version as I said before is a 3.2L straight 6 unit producing 236kw's and propels the M3 to 100Km/h in 5.2 seconds and on to a top speed of 250Km/h. It featured improvements over the previous 3.0l version including Dual Vanos operating on the exhaust camshaft as well as the inlet camshaft. Increased compression ratio to 11.3:1, reduced valve stem thickness and a higher rpm red-line. This engine has a bore of 86.4 mm and a stroke of 91.0 mm giving a displacement of 3201 cc. One of the key features of the S50B32 motor was it's maximum permissible speed of 7600 rpm, this gave the M3 a very "race" car type of feeling as one was encouraged to push the M3 hard thanks to this high rpm limit. Complementing this racy motor was an ultra slick and precise 6 speed manual gearbox that added to the overall driving experience of the car. The E36 M3 could at times be a very tail happy rear wheel drive machine, performing effortless power slides at the slightest command from its driver. I wouldn't recommend jumping straight into an M3 and trying to drive it on the limit as it does have a habit of punishing those who under estimate it`s abilities, but never the less the M3s handling characteristics are very predictable and you should be performing those power slides in no time.

Like beautiful woman, sports cars can be moody and high maintenance at times, but thankfully the engineers at BMW's M division knew this too and designed a no nonsense, reliable performance chariot for the masses. Some of the more commonly reported problems the M3 and its drive train experience are as follows:


Please note many of the faults in this list are due to normal maintenance issues as the vehicle ages and are not actual faults with the M3.

Rear shock mounts

Rear trailing arm bushes

Water pump, 1995-1997 models had a stock plastic impeller that failed routinely.

Transmission mounts

Shocks, the oem versions seemed to last +- 70 000km's before needing replacement.

Radiator hose fittings cracked as the vehicles aged so make sure the car in question is not losing any coolant on the drive way.

Thermostat housing

Vanos failures seem to be fairly common, again this may be remedied by proper maintenance. Many M3 enthusiasts insist in having there engine oil changed between 5000-10000km`s rather than the standard 15 000km's.

Faulty ignition cylinder, where the key just turns inside of the ignition barrel without engaging.

Other than that the E36 M3 is a fantastically reliable machine and should provide many km's of hassle free motoring IF correct maintenance procedures have been followed and the vehicle has not been driven by a complete hooligan day in and day out.

So you have made up your mind and you want one almost as badly as you want your next breath.

E36 M3's range in price from as little as R70 000 to R140 000 depending on mileage and condition. Buying one that is stock standard and 100 percent original is your best bet as it will be much easier to sell a standard M3 than a modified one, please bear that in mind if you ever do buy one. I will list a few examples below so that you can get an idea of what`s out there.

1997 BMW M3

Mileage: 150 000kms

100 percent original

Full house all the bells and whistles. Air-con, power-steering, leather seats, sunroof etc.

Price R125 000

1996 M3 

Mileage 190 000kms

100 percent original

Good condition

Full house

Price R95 000

Please note these are not vehicles I have for sale they are only examples of what one can expect to find when you start your search for your M3.

So to sum up the BMW E36 M3

It`s a hard-core every day sports car for the enthusiast on a budget, that will deliver pure driving joy and keep a smile planted on your face every time you drive it. Just remember, look after your M3 and it will look after you.

2002 BMW E46 318i tiptronic

So you have always wanted a BMW?. No?. Well for those of us who have you will most likely not want to spend "BMW money" on a BMW. So can you still get in to a good second hand BMW that ticks all of the right boxes on a budget?

Keep reading to find out.

Over the years I have owned many different cars but one of my personal favourites and current daily drive is a 2002 BMW E46 318i tiptronic face lift. The BMW E46 was the successor to the legendary E36 and was in production from 1998-2005, with a face lift becoming available in 2002 and like all BMW's it continued to offer the right balance of luxury with a sporty yet extremely comfortable driving experience. The most common type of E46 for sale these days in South Africa would have to be the 318i. There are two types of E46 318's on the market, the face lift and preface lift models. What`s the difference you may ask - well think of Madonna in 2002 vs 2010, it`s still the same person just with a few enhancements here and there. The face lift model came out as I mentioned in 2002 with a new front end upgraded engine and reworked rear end, making the car look more modern even compared to today's standards.
So are there any good deals to be had on what is essentially an older BMW?. What are some of the more common faults to be found on some second hand 318's and what it is like living with a second hand E46 318i (servicing costs, fuel economy, driving pleasure, resale value, etc).

You know the drill by now, keep reading.

Deal or no deal:
There are always car deals to be found out there. How good of a deal it is all depends on how hard you have been looking. Let`s take my car as an example - as I said before it`s a 2002 318i tiptronic with only 38 000km's on the clock, with a full service history and it was in immaculate condition - all for the low price of R102 000 including registration and licensing. Not bad considering some of the standard features of the car which I will list below:
Air con
Power steering
Electric windows all round
Electric mirrors
Six airbags
Six speaker BMW business radio sound system
Traction control
Abs with break discs all round
Cruise control
Audio and cruise control buttons on the steering wheel
Leather seats
Five speed automatic gearbox with manual sports shift function (Tiptronic)
Plenty of space, can easily accommodate five passengers comfortably and their luggage thanks to a big boot.

So in my opinion a pretty darn good deal if you look at what`s available on the market today with that kind of mileage in the R100 000 price bracket. Sure there might be newer cars out there but none of them will give you the same driving pleasure that the BMW can.
BMW 318i's range in price from as low as R50 000 up to R105 000 depending on year and mileage and condition. A good starting point if you are looking for a face lift model(2002+) would be a 2002 model with 120 000kms +- for R65 000- R85 000 again this all depends on the overall condition of the vehicle.

Problems? What problems?

All new cars that roll off the production line will at some stage or another begin to show their age as time goes on, be it mechanical break downs or a fading interior, it is inevitable. But just like people some cars are predisposed to certain niggles that pop up in the vast majority of them as the years pass by and the BMW E46 318i is no exception to this, but thank fully most of them are rock solid, quality built machines that will give you years of driving joy even if it is second hand.
I will list some major and minor problems that the E46 318i may suffer from, starting with serious problems 
first.


 Engine:

The N42b20 is a 2L petrol motor used in the 2002 318i. It is a fantastic engine and is pretty much rock solid, I have seen many examples on the road with 250 000kms + on the clock and they run like new. With 105kw's and 200nm of torque on tap it propels the 318i in a 0-100km/h time of 9.5 seconds. The N42 motor can however suffer from sludgeing, where the oil becomes thick over time and sticks to engine components like a thick sludge and can cause severe engine damage. This however is easily avoided by having your oil changed every 15 000kms or 12 months whichever comes first. Word of warning when it comes to owning one of these cars with this motor, don't follow the onboard computers recommendation of when to change the engine oil (BMW say +- every 25 000km's). This in my opinion is just crazy even if the dealer is using long life oil. South Africa has a warm and humid climate and this will cause your oil to degrade faster than say the same vehicle in a colder climate like Europe. Another relatively common problem I have heard of is the cooling system plastic components like the radiator bottle become brittle over time and can leak or fail, so it`s a good idea to have a poke around the engine bay and make sure that there are no fluids being lost on the driveway. Another thing to ask the owner of the vehicle is if the serpentine belt has been replaced. This belt runs all of the motors important systems like the water pump, power steering etc. If it hasn't been replaced and the vehicle in question has +- 160 000kms on the clock I would have it done even if the belt is still in good condition, prevention is better than cure. The N42b20 is by nature a "tappity" sounding motor so don't be concerned if you do hear small clicking or tapping noises when the engine is running.


Gearbox and drive train:

The gearbox is a five speed automatic box with Manual sports mode. The gearbox is pretty rock solid along with the differential, BMW use a special life time oil in the gearbox and differential, meaning these components never need to have the oil changed for the duration of the cars life. This again can cause problems in cars with higher mileage 250 000kms+ where gear shifts become very jerky and this can sometimes be remedied by changing the oil in the gearbox. Please bare in mind that if you want to have your gearbox oil changed you will have to have it done at a independent work shop because BMW won`t replace gearbox or diff oil, unless there is a leak or the car has been in an accident that has resulted in the loss of the oil. Another gearbox failure I have heard of has been the inability to select a certain gear for example reverse. Again this is a problem I have heard of mostly in cars with high mileage and one or two cases with less than 100 000kms on the clock.

Suspension:

One of the most common problems I have come across when it comes to the suspension side of things on the E46 are the control arm bushes. They have a habit of wearing out prematurely in some cases, this can cause a knocking noise under braking as the control arms are allowed to move around more than usual. This will also affect the handling characteristics so be sure to listen out for any strange noises when you go on a test drive.


Interior:

The interior build quality of the E46 is very good, soft high quality plastics and excellent leather are used through-out and should stand up to even the most hyperactive kids. One of the most common interior problems with E46's are the electric window mechanisms. They have a nasty habit of failing with heavy use, this will cause the window to either get stuck when trying to open or close. Some of the warning signs that the mechanism is on it`s way out is a clicking or popping sound when the window is moving up or down. The window will also move slower than normal under operation so check all four windows are working correctly when you go to look at a potential vehicle.

Other than that the BMW E46 318i is a reliable vehicle, so much so that this is my second one. My previous one was a 2000 pre face lift model that had 220 000kms on the clock and never set a foot wrong or burnt a drop of oil.


Servicing:

Most people think that owning a BMW is an expensive affair, this is partly true. Large mechanical parts for European cars are more expensive than say the Japanese equivalent, but servicing costs are pretty much the same as any Toyota would be. I had an inspection service done on my car that came to R3000.00. This is an in depth inspection/service, done at predetermined intervals by the cars onboard computer. A normal service on the other hand (Filters, oil, fluids, diagnostic check, and checking the brakes for wear) came to R1600.00 from a BMW dealership. You could bring this cost down if you went to an independent BMW mechanic. The only reason I have my vehicle serviced at a BMW dealer is it`s nice to see an official dealer stamp in the service book, it just puts a potential buyer at ease when the time comes for me to sell the car.


Fuel economy:

As with any car the faster you drive the more it`s going to cost you fuel wise. The E46 318i Tiptronic gets around 12L per hundred km's in stop and go traffic, whilst the lowest figure I got on the open road was 7L per hundred km's, this figure could have been lower but it was a short open road trip.


Living with the E46 318i has been a very nice experience, loads of features, great value for money , good reliability, sporty yet comfortable drive, excellent resale value compared to some of the bigger engined E46's, good performance considering it is only a 2L.

So to sum up if you are looking for a BMW family saloon with loads of bells and whistles for a reasonable price, look no further than the E46 318i. Just make sure you check the car out thoroughly, check the service history and never be afraid to negotiate on the price. These are relatively common cars so you will be spoilt for choice when it comes to buying one. Don't snap up the first one that comes along go and look at a few to get a better idea of what`s out there.