Should you buy a car on auction?

Finding a new car that meets your budget can be tricky. As a result, more buyers are turning to car auctions in order to help them find a vehicle that suits all their requirements at a price they can afford. Vehicle auctions have become an affordable and popular solution. 

Below are a few tips and advantages when buying a car on auction. 

What is a vehicle auction? 

Vehicle auctions are similar to other auctions, such as real estate or moveable auctions. The auction proceedings are managed by the auctioneer, offering bidders a wide selection of cars called a "lot". As the auctioneer presents each lot, potential buyers place a bid, with the highest bidder driving away with the vehicle. Auctions are either held in a physical location or online (sometimes both). 

Here are a few of the benefits of buying your next car on auction: 

There’s a wide selection: 

Searching for a new family car or a truck for your business? Auctions allow you to choose from a variety of options. Selections often include different brands, models or specific makes that you likely would not have spotted at your local dealership. Auctioneers allow potential buyers to view each car on-site on the day (or a day before), allowing you to find a vehicle that meets your prerequisites. With countless daily vehicle auctions taking place, you will always have a range of cars to choose from if you cannot find what you are looking for. 

Get it at an affordable price: 

Nothing is better than getting something at a great price without breaking the bank, and vehicle auctions help you do this. The value of a new car depreciates the minute you drive off the showroom floor and will statistically lose between 15% and 20% of its value each year. You can rest assured knowing your vehicle will never lose as much value when bought second-hand on auction.

All the details upfront: 

A frustration that many buyers face when purchasing from a private seller, is that not all details are presented upfront. Worn-out brake pads or transmission fluid leaks are just a few of the problems you may be confronted with once you sign on the dotted line. Vehicle auctions offer buyers all the details before purchase. However, it's important to note that most vehicles are sold at “voetstoots” or "as-is." Alternatively, repossessed cars sold by the bank may still have a warranty, allowing you to contact the company if you run into a problem with the vehicle. 

Whether you’re a first-time buyer or a seasoned veteran, here are a few tips to keep in mind when heading to your next car auction: 

Understand the registration process: You’ll need to register and pay a deposit before you start bidding on a vehicle. The deposit will be deducted from the cost of the vehicle, or it will be refunded if you do not purchase anything. 

Always inspect the car before the auction: As vehicles are sold voetstoots or “as is,” it’s best to view it before the auction takes place. It’s a good idea to inspect the cars you’re interested in to ensure you’re happy with everything. 

Know the worth of the car: It’s easy to get swept up in the excitement of an auction, so it's important to understand the worth of the car before you start bidding to avoid paying more than you should. Ensure you do your research on what similar cars are retailing for online or consult an expert. 

Have a few options: You have your heart set on a specific vehicle, but you’re not the only one who has their eye on it. You should have a few options when heading to car auctions, as it will allow you to avoid disappointment.   

Find your next car auction 

Finding a car that meets your expectations doesn’t have to be a challenge. Allow Auction Calendar to be your ultimate companion for finding upcoming vehicle auctions within Southern Africa. Set up personalised alerts based on your selected categories and receive notifications straight to your phone or inbox -  finding your next vehicle auction has never been easier!