Hammer out a magic deal

THERE ARE not many who can create some magic out of this recession but Merlin Motor Auctions seem to be riding the economic tsunami with incredible success.

They are now holding four auctions a week dealing in more than 1,000 cars between their premises in Naas and on Dublin's Kylemore Road. According to managing director David Byrne, Merlin is "defying the logic by making a business model that has overcome the fear factor for the public to use auctions".

This has paid off big time. At the end of 2005, only 6 per cent of their customers were private but it is now 60 per cent. And while only 3 per cent of sellers were private that figure is now 30 per cent.

The changed perception has come through giving buyers access to an online check system, the ability to bring in their own mechanic, and having an on-site engineer who gives a grading system to all cars. There is also the possibility of selling your car directly for cash to Merlin and customers can also trade in their current vehicle against any purchase at the auction. Bentley Continentals and Aston Martin DB9s have been sold recently, as have more lowly Ford Focuses and Nissan Micras.

At both ends of the market there is massive value -- while the 2007 DB9 made €100,000 against a new price of around €250,000, an 08 Focus went for €10,500 against €14,999 in a secondhand showroom. However, David Byrne points out that the manufacturer's warranty is exactly the same in both situations. Obviously, Merlin has seen a big increase in the number of people bringing their cars to the auction to sell because they are experiencing severe cash-flow difficulties -- some as a result of losing their jobs.

Other cars sold through their Car2Cash scheme in June include a 07 Mitsubishi Colt CZC 1.3, a 04 Toyota Avensis Aura 1.6, a 05 VW Passat TDI 1.9, an 08 Opel Astra OPC 2.0, a 05 BMW 320i 2.0, and a 08 Skoda Octavia TDI Elegance 1.9.

One of their significant investments has enabled the company to launch Merlin Live Online, allowing customers to view the auctions live on the web in real time.

More than 7,000 vehicles have been sold at Merlin this year. The company is the only SIMI registered auction. David Byrne says this is a great time to be selling a car as there is a major scarcity of used models.

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