Virseker points out the pitfalls when buying a car on auction
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Many believe that buying a car on auction is a simple way of saving money and finding great bargains. “It’s true that you may be able to pick up a cheaper car this way than from a dealer. But, as a private buyer you need to a lot of work to reap the sizable savings of buying at a car auction” explains Elmarie Twilley, spokesperson for Afrikaans insurance brand, Virseker.
Used cars for sale in South Africa at auctions are mostly repossessed vehicles; taken from liquidised estates; from local dealers who weren’t able to sell the particular car or from company fleets. Private sellers also put their vehicles up for auction.
A list/catalogue of the cars on auction is made available to the public so they can see what will be auctioned off on that particular day - you can physically view the vehicle. When the sale starts, each vehicle is driven into the auction hall for display. The auctioneer gives a short description of the vehicle and then starts with an opening bid. The bid is sold to the person who bid the highest price. The car needs to be paid within 24 hours, depending on the auction’s rules.
Twilley explains some of the pitfalls to be aware of when buying a car on auction:
- First of all, visit an auction before you buy so you know what to expect;
- Research the price and performance of the car that you’re interested in before going;
- Adjust your budget and make sure you include buyers' fees, which increase with the amount you spend;
- Consider that the auctions often occur during the working day so you might have to take a day off work. You'll also need to get there (you'll be driving your new car home) and back (if you don't buy anything);
- You need to inspect the car for blemished bodywork or crash damage;
- Remember that you cannot test drive the vehicle at an auction. The vehicle has also not been inspected or certified;
- They don’t come with service books and might not even have their manuals anymore;
- The vehicles may be in bad condition. Fleet vehicles often were driven hard before being ‘retired’;
- If the vehicle was repossessed, chances are that the previous owner didn’t have the funds to maintain it well. Be sure to do a thorough inspection for any leaks and other evidence of wear and tear;
- Try and have someone with good mechanical know-how accompany you;
- The bidding is fast and sometimes confusing. Avoid paying too much because of being caught up in the moment;
- The vehicle doesn’t come with warranties or guarantees; and
- Be prepared to pull out if the car goes over your maximum price.
So is it worth buying a car at an auction? If you're prepared to put the above work in plus have the time, the confidence, and the knowledge, you will probably make a decent saving. If not, you might be better off taking the safer bet by going to a dealer.
Twilley concludes, "At an auction you are actually buying a car. This is very different to being sold one - which is what most people are used to. Whatever you do, remember that a vehicle is a costly and important investment so make it a good one.”
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