BY Mabuyane Mabuza
Times are tough and the cost of living is escalating not only in South Africa but the world over. Some are barely surviving; some introduce different financial methods to survive. Most consumers are losing their possessions such as homes, vehicles, furniture, and other valuables.
These assets are sold off on auctions. A conversation with a relative recently made me realise that people are always looking to buy stuff for as little as possible. The young chap is on the market for a vehicle and wanted my opinion on how to successfully buy a car at an auction.
Getting started at auctions
Auctions can be a good place to buy a vehicle but just like with any other asset, they can also be a bad place to buy. What I am saying is there are Pros and cons of buying a vehicle at an auction.
You need to have scrutinized the vehicle before lifting your hand to bid for it.
Before you get mesmerised by the shiny paint, the big wheels, and the Harman Kardon sound system, there are red flags that cannot be ignored.
Background checks
First things, do a background check on the vehicles you have earmarked before placing a bid. Check if the vehicle is not a stolen car, hasn’t been involved in a serious accident, and the general mechanical/physical condition of the vehicle. Check documentation such as roadworthy certificates and license discs.
Beware of “ghost bidders” trying to drive the bidding price high. Just like when hunting for any used car, you may also ask someone who has better knowledge of cars than you. Be ready to walk away if the car looks too good to be true and you haven’t done due diligence on it.
Leave emotions at home
Do not rush to place a bid, go around a few auctions and get the feel of their processes. It is always advisable to stick to your set budget, to filter in the extra costs that may arise from buying at an auction.
Start the engine and listen to it. Ask for documents such as service books, logbooks, and anything that could assist you in understanding the background of the vehicle bearing in mind that goods at auctions are sold “voetstoots”.
Try to focus on bank-repossessed and fleet vehicles.
Most banks are selling these assets through auctions to recoup their monies. The fleet vehicles at auctions mostly come from government departments, big corporations disposing of their fleets which would have reached their end of “life”.
