DISPOSAL PROCEDURES

Introduction

The University has established preferred supplier agreements for disposal of ANU motor vehicles.

When compliance with the procedures is not considered to be in the best interests of the University, a written and reasoned email of intent not to comply should be forwarded to the Manager, University Procurement and Contracts Office by the relevant delegated officer.

When to Change Over a University Vehicle

The University has agreed upon the following changeover schedule for University vehicles:

• Pool vehicles to be changed over at three years or 40,000 kms (whichever is the lesser); and
• Private use vehicles to be changed over at two years or 40,000 kms (whichever is the lesser).
• Maintenance/ Commercial Vehicles (vans, utes etc.) 40,000 kms or 5 years (or as agreed with the business office)

Field Vehicles

• Four Wheel Drive Vehicles - at 40,000 kilometres or 2 years (or longer if Business Unit needs require).
• Other Field Vehicles - at 40,000 kilometres or 2 years (or longer if Business Unit needs require).

Specialty Vehicles (forklifts, buses, electric maintenance vehicles) as determined by Fleet Manager and\or the Business Unit.

Disposal Method

The University is contracted with Pickles Auction Pty Ltd to manage the disposal of University vehicles. The University has chosen this ‘arms length’ arrangement to minimise the administration costs associated with vehicle sales.

Pickles Auctions will dispose of University vehicles through one of three methods (unless specified otherwise by the Vice-Chancellor or his delegate):

1. Fixed Price Cars – Pre-Auction Sales to ANU Staff Only

2. Fixed Price Cars – Pre-Auction Sales

3. General Vehicle Auction

University Fleet Services will arrange for the disposal of your University Vehicle. The University has a contract to dispose of University Vehicles with Pickles Auctions.

Procedures for Disposal

· Vehicle is delivered with all spare keys and registration papers to ANU Fleet Services, who advise Pickles that it is ready for sale. [Don’t forget to remove the ANU Parking Label from the vehicle]

· University Fleet Services will then arrange to get the vehicle to Pickles at Fyshwick.

· Pickles will book the vehicle in and set their own estimated sale value\evaluation price to help in settling the vehicle reserve price.

· Pickles will contact the Fleet Manager with their evaluation of the vehicle and recommended reserve price. The University Fleet Manager will confirm\negotiate the reserve price with the area concerned.

NOTE: The Budget Unit can specify or have input to any reserve level set.

1. Fixed Price Cars – Pre-Auction Sales to ANU Staff Only

With this method of disposal, University staff are provided with an exclusive opportunity to purchase University vehicles before they are offered to the public.

Vehicles will be supplied to Pickles by COB on the Monday prior to the sale. This will allow Pickles time to inspect and value each vehicle and have the vehicles detailed to a professional standard. By Wednesday Pickles will provide a Pre-Sale Report outlining the vehicles available for sale, the valuation and reserve set.

· Vehicle is evaluated for sale (eg. $20,000).

· Commission fee is added to sale price ($750)

· Processing and Administration Fee ($297) is also added to sale price (fixed price would now be $21,047)

The dedicated ANU Staff Fixed Price Sale, provided there are vehicles available, will be conducted for a two day period on a weekly basis. The vehicles will be made available for staff to inspect each day from 8.30am to 4.30pm, Thursday & Friday. Should the vehicles remain unsold they will be moved into the regular Fixed Price Sale that is available to the general public and consequently, if still unsold, be made available in the public auction conducted on each Thursday afternoon.

To ensure that only ANU staff members purchase from this sale it has been agreed that prior to finalising the sale of each vehicle that certain requirements must be met by the buyer. The buyer must produce:

• a current photographic driver’s licence

• a letter of introduction from the ANU.

If at any stage there is some ambiguity about the buyer’s credentials Pickles will contact the ANU for further confirmation. In addition, a $500.00 non-refundable deposit will be required to secure the vehicle.

2. Fixed Price Cars – Pre-Auction Sales

When a vehicle has not been sold via the ANU Staff sale method, the vehicle is then offered to the public for sale prior to the vehicle going to auction.

Some trade vehicles or vehicles in poor condition will not be suitable for Fixed Price sales and will go straight to the normal auction.

Procedures are as with the ANU Staff sales method (above), however, the pricing of the motor vehicle differs.

· Vehicle is evaluated for sale (eg. $20,000)

· 12% is added to the Auction evaluation (the fixed price in this example would now be $22,400).

· Vehicle can now be purchased prior to auction at this price.

· The commission for the Fixed Price Cars-Pre Auction Sales is calculated as follows:

Subtract the Evaluation price from the Sale Price. (in this instance, is always 12%)

Subtract $300 from this total.  Divide this total by 3 and add back the $300 = Commission

EG:  Eval Price $20,000.00 - Sale Price $22,400.00 (+12% of Eval price)

=$2400 - $300 = $2100

$2100 divided by 3 = $700.

$700+$300 = $1000

$1000 Commission

-  these costs are borne by the area disposing of the vehicle

3. General Vehicle Auction

If a vehicle has not been purchased at either the Fixed Price Cars – Pre-Auction Sales for Staff or the Fixed Price Cars – Pre-Auction Sales (public), the vehicle will go to General Auction. Auctions are held on a weekly basis at Pickles Auctions at Fyshwick (Thursday afternoon for General Auction).

· Commission is a set amount of $140 per motor vehicle plus detailing costs – these costs are borne by the area disposing of the vehicle.

Pickles Administration for all three methods

Payment for the motor vehicles will be strictly cash or bank cheque only and all monies paid will then be deposited into the Pickles Trust Account until the sale has been finalised.

Directly after the sale, Pickles will provide a Post-Sale Report outlining vehicles that have been sold and\or remain unsold (All unsold vehicles are then moved into the regular Fixed Price sale).

Remittance to the ANU will occur within 5-7 working days after the sale has been finalised, less any commissions and detailing charges.

Under the ACT Sale of Motor Vehicles Act 1977 Pickles Auctions are required to provide a statutory warranty to cover any defects that may occur within a three month or 5,000km period from the point of purchase.

Detailing Options

Level A: ($80 + GST)

· Engine wash

· Outside wash including wheel arches and sills

· Windows cleaned

· Tyre shine

· Interior vacuumed

· Dash and console wiped over

· Hand polish

Level B: ($120 + GST)

As per level A plus:

· Full machine buff or glaze as necessary

· Shampoo seats and carpets;

· Wheel arches sprayed black;

· Door jams and boot jams washed in exterior wash; and

· Interior including roof lining, seat belts etc cleaned.