For many South Africans, buying a car isn’t just a luxury, it’s a necessity for work, family and everyday life. With the rising cost of living in South Africa, owning a vehicle can be a huge financial commitment, and many buyers cannot afford the price tag at dealerships.
Car auctions offer an affordable alternative, providing access to quality used vehicles at more competitive prices, making vehicle ownership more attainable. For many individuals who rely on their car for work, school runs, or commuting, this can be a practical way to secure transport without breaking the bank.
Car auctions offer a cost-effective alternative, but preparation is key when trying to avoid expensive mistakes. Here are a few things you need to know before attending your next car auction:
Understand the car’s value
While auctions can be a great way to find bargains, they are also competitive environments that can easily lead to overbidding due to excitement. When you take the time to do your research and understand the car’s worth, you’ll have a better chance of getting a good deal and avoiding buyer’s remorse.
A good way to avoid this is to compare market prices by checking listings on dealerships, online car platforms and classifieds for similar makes and models. Along with this, there are a few additional factors to consider. For example, are you willing to spend less on a higher-mileage vehicle, or pay more for one with lower mileage?
Keep in mind that most auction items, including vehicles, are sold as-is. This means the car you’re considering could have dents, scratches, or even major damage. Be sure to factor these potential costs into your budget and decide how much you’re willing to pay to cover them. When you walk in with a clear figure in mind, it makes it easier for you to bid with discipline and confidence.
Inspect the Vehicle (When Possible)
To ensure a fair and transparent auction process, a vehicle often undergoes rigorous inspection before making its way onto the auction floor. To further build trust, buyers are encouraged to attend auction previews where possible. While auction listings often include basic notes about potential damage, auctioneers may not know all the potential hidden problems.
A good in-person inspection helps you avoid feeling frustrated the minute a problem arises. If you’re not clued up on the ins-and-outs of vehicles and its mechanics, it’s always a good idea to bring someone along that does understand and can help you spot potential problems. This is also a great opportunity to compare multiple vehicles and ask questions. This increases the chance of finding the right car for you.
Take a look at the car’s history
Buying a car at auction may be a great way to find bargains, but it can also be a calculated risk. Purchasing a car that may be in poor condition is a possibility, but that’s why research and careful inspections can be a good way to ensure you’re satisfied with your purchase. While auction houses provide the basic details of the car, such as the make, model, and year, they do not offer in-depth car history.
SAIA VIN-lookup is a great online tool that allows potential buyers to check the status of a second-hand vehicle using the VIN number. This process can show if a vehicle has been involved in an accident and reported to insurance, helping identify any major damage that could have occurred, it also confirms whether a vehicle is insured, stolen or underfinanced. Additionally, it provides basic details about the registered owner and whether the vehicle has been transferred. This can be a good way to determine the overall quality of a car, helping you make informed decisions. AA Autofacts is another online tool that helps buyers make smart decisions about pre-owned vehicles.
Understand vehicle condition terms
You’ll hear the term “as-is” or “voetstoots” quite a bit when attending auctions. When it comes to car auctions, this simply means that the seller or auctioneer cannot guarantee the roadworthiness or mechanical condition of the car you’re bidding on. Many of the vehicles driving onto the auction floor may have missed scheduled maintenance, brake pads and tyres may be nearing end-of-life, or other mechanical faults may be affecting the reliability of the vehicle. These are factors that are not always flagged in listings, so it’s important to keep this auction term in mind when bidding on your next vehicle
Legal or administrative risks
It can be a thrilling experience to win at an auction! However, once you’ve placed the winning bid and the hammer falls, it’s important to keep in mind that you’ve officially entered a binding contract. This means that you cannot renegotiate the terms or withdraw without facing financial or legal penalties. If you are found to be in breach of contract, the auction house or seller may sue for damages, you could lose your deposit, or you might be banned from participating in future auctions with that specific seller or auction house.
While auctions are an excellent way to find a bargain, potential buyers need to consider the hidden costs involved in bidding at car auctions. Auction houses will often charge a percentage of the hammer price which is paid by the buyer directly to the auctioneer. This percentage usually ranges from 5 - 15% and is excluding the additional 15% VAT that would need to be worked into the final price. Therefore, buyers will need to include these hidden costs into their budget to ensure they are prepared when the hammer falls and they receive the winning bid.
Final Tips for First-Time Bidders
- Make an informed decision by trying to find a history report.
- Don’t only budget for the car, but factor in additional costs such as VAT and the auctioneer’s commission.
- A trusted auction house will never ask you for cash upfront to remove a listing from the auction floor. Be wary, as these may be fraudsters.
- Ask questions! Auction Calendar allows you to contact auctioneers directly. If you’re unsure about anything, use this feature to ask questions.
Ready to find your next car auction? Start exploring on Auction Calendar.
