|EUROPEAN PERFORMANCE PRODUCTS|
|Toronto, Ontario, Canada|
Wholesale Auction Vehicle Brokerage Services
What should I do before asking Willz to look for a car for me?
There are a few things that should be done in advance. Do some preliminary research into the vehicles you're interested in. Review the features and options it comes with or that you can get. Take some test drives at your local dealership. Talk to friends who may have similar vehicles and ask their impressions. Read consumer reports. Get a sense of how the vehicle fits you and your lifestyle. You need to have a sense of your budget, what similar vehicles are going for in private sales and retail dealer sales, eBay, AutoTrader, Cars.com, etc. You have to educate yourself on the products that are of interest to you. You have to see the value of buying this way. The more particulars you can give us about your vehicle, the more able we will be able to match it with what's available. Prepare financing and consider your budget. Research insurance issues, etc. There is lots of other paperwork to prepare, of course. See the Post Auction pages for more info.
What is needed to start the bidding process?
For you to bid on any vehicle of interest, we require a 10% deposit one day prior to the auction.
The deposit amount is based on the final delivered price of your vehicle. The deposit is refundable if we buy nothing, i.e. your maximum bid price is lower than the price at which the car of interest sells for. If your maximum bid price is higher than the price at which the car sells for, we will win the auction. You are obligated to pay for the remaining fees. If the sell price is below your maximum bid price, that is the number on which our fees are based. You won't necessarily have to pay fees based on your maximum bid price. We charge a 5% buyer's premium on what the car actually sells for at auction. Vehicles are often purchased at values below maximum bid prices.
We do not require a deposit until we can find you a car that is worthy of bidding on.
If we are not successful in bidding on your car, your deposit is fully refundable.
How do I pay the deposit and in what form?
Direct deposit, Interac email transfer, PayPal, cheque by mail or in person. We can send details of our account to you and you can deposit funds at any branch near you. You can send funds by Interac email transfer, but Interac applies daily maximum limits per day and per week. Alternatively, you can send funds by Paypal, but if you use your credit card, we have to charge a 3% processing fee. You can also send a cheque made payable to Willz Leasing Corp. by mail. You can also meet up with us and hand off funds in person.
What is the fastest way to send a deposit?
The fastest way to send a deposit is to do an Interac email transfer. Remember: Interac limits these transactions to $1000 to $3000 per day. CIBC allows $2000 per day. Check with your financial institution as to your specific limit.
What happens if I change my mind after telling you to buy?
Your deposit is forfeited if you decide to not purchase a vehicle after telling us to proceed. We will need to sell the car at auction as soon as is reasonably possible. We are not in the business of financing vehicles or holding inventory. To defer costs associated with reselling the purchased vehicle, we use the deposited funds you provided to dispose of the vehicle. If there are any funds left, subsequent to disposal, we can return them to you.
How do some "buy now" prices compare to auction selling prices?
The "buy now" price is used by dealers, including the manufacturer, to pre-sell their cars before they get to physical auction. They don't clean up the car, transport it to auction, pay the listing and selling fees if they can sell it on-line to another dealer prior to the scheduled physical auction. The price is usually somewhat higher than you'd expect to pay at auction, but these cars are usually the better ones that never make it to physical auction. Often, they are in better shape, lower mileage, and with more options.
Does Willz have a standard purchase contract for these vehicles?
Yes. Upon completion of the transaction both the purchaser and vendor are obligated to sign a contract that is found on our forms page. This contract affords the purchaser and vendor certain rights. We use this contract for every vehicle sale. We can fill out this contract prior to accepting any funding from you. That contract consists of three identical pages. One copy is retained by the purchaser, two copies are held by the vendor.
How do I set my maximum bid price?
We will provide you with a list of historical averages that similar cars have sold for in Canada and the US. We will compared these averages with cars that are available for sale. Things like colour, options, features, location, and condition of these vehicles will compel us to bid a little higher or lower than the averages. Remember bidding the average will only give you a 50/50 chance of winning an average car. A clean well-optioned car will demand a small price premium over the average. What maximum bid price you select is the number we will take to auction for you.
How is the average auction price ($MMR) calculated?
In our sample vehicle listing and sample vehicle report, we refer to this as the AAV or Average Auction Values. Some auctioneers refer to this as $MMR. The average value shown in vehicle search listings and on vehicle reports corresponds to a computer-generated national average wholesale price. Essentially, it is the average value which similar vehicles have recently sold for.
It takes into account the year, model, and make and is adjusted for mileage. The averages are calculated from the auction house's transaction history over the last 3 months.
The average value does not quantify or adjust for the condition of the vehicle or its options load. This must be done manually. For example, two cars with the same mileage but where one has the grade rating of 5 (i.e. excellent) while the other is rated 1 (i.e. scrap) will have same average. Another example: one car with DVD and leather interior will have same average value as car with basic sound system and cloth seats.
What happens on the day of the auction?
We have to pay the auction house for the vehicle on the day of the auction close. In the case of a Canadian sourced car, the remaining 90% of the auction cost has to be paid on the day of the auction, plus the 5% buyer's premium, plus the HST. The auction house will typically charge a small $250 paperwork processing fee on cars in the $20,000 value range, which would be added to the wholesale cost. In the case of a US sourced car, we will need the remainder of the 90% of the cost of the car on the day of the auction. When we are ready to import the car, we will require, duty, excise and HST. When we go to safety/smog a car, register it, federalize it (US only), transport it, then those costs are due. Essentially, when we need to pay for various expenses for your car, that is when we ask you for funding.
How do I pay the remaining auction amount and in what form?
Payment for the balance of the auctioned amount (total minus deposit) will have to be in the form of a wire transfer or a money order/bank draft will have to be dropped off.
Our bank will put a 5 day hold on funds if they are deposited in a branch that's not our home branch. That affects our ability to pay the auction house immediately, and delays the delivery of your car. Most other smaller payments, can be deposited into our account remotely.
If you bank at TD Canada Trust, you can set up our Company as a personal payee and transfer $5000 per transaction without a daily limit. However, this process has to be done a day before the planned transfer. Intrabank transfers with TD have no limits if initiated at your branch in person.
Funds can be in CAD or USD, whichever is your preference. We can convert to USD on our end as need requires.
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Page last edited on November 24, 2011.