What are the Chances of Winning a Car in a Competition?
During my travels across Australia, I’ve seen heaps of luxury vehicles up for grabs in competitions at airports and shopping malls. Mercedes SL55s, Beemers, Ferraris, DB5’s: usually with a crowd of onlookers admiring them, and a glamorous sales rep asking them to buy an entry form for a chance to win.
The question on my mind is: are these contests worth entering?
I did a bit of research to find out exactly how these competitions work.
To be entered into the draw, you have to purchase a ticket first. Although the initial cost might seem annoying, it’s better than some competitions, which make their money by collecting your data and selling it on to telemarketing companies. Car giveaway organisers pay for a spot at the airport and employ skilled sales people to show off the luxurious cars: and to tempt you into buying a ticket.
So can these competitions be trusted? Yes. These competitions have to receive approval from the Australian Competition and Consumer Commission, so it’s not a scam.
So what are the odds of actually winning one of these cars? Frustratingly the number of entries are never revealed for these luxury car competitions, so it’s hard to say.
Logic suggests that each car prize generates revenues in the sale of tickets. Ticket prices range from around AUD $20 to AUD $100, depending on where the tickets are purchased. By that reckoning your chances at winning is probably 1:10,000. Better than a lotto win.
Before you decide that this type of competition is not for you, think about it: your odds of winning most competitions are probably in the millions.
Will you be entering a luxury car competition the next time you’re at the airport?