Get all the nitty-gritty about car auctions

Your car auction 101

An auction is a public sale where assets or lots are sold to the highest bidder. Online auctions have become popular as they are convenient – buyers can sit in the comfort of their home and sellers can auction-off assets from all over the country on one auction site.

Here’s the admin part, pay attention!

• You need to register as a buyer and pay a refundable deposit – this helps ensure that only serious buyers are participating.
• The amount of the deposit depends on the auctioneer, and you can use that deposit as part of the final payment if you buy a vehicle.
• To register, you need your proof of residence that’s not older than 3 months and a copy of your ID.
• If you’re not South African, you’ll need a copy of your passport and Traffic Register Certificate.
• If it’s a legal entity (like a company, trust or closed corporation) is the purchaser, you’ll need incorporation documents: a copy of the trust deed, articles of association or a similar document indicating the beneficiaries, trustees, shareholders, directors or members.

Tips and things to keep in mind:

• Do your homework and get a list of the repossessed vehicles before the auction to get a great deal. 
• Cars will be on display the day before the auction, you can inspect the cars thoroughly and compare prices.
• Be diligent – check for damage, poor repairs etc.All cars are sold with no duty to repair, meaning they are sold as is, with all defects currently on each car. The auctioneer must disclose all known defects of the car, and no guarantees or warranties apply.
• All prices exclude VAT.
• Banks don’t advertise repossessed car auctions on any social media platforms.
• Read the terms and conditions on the auction website as some auctions have special rules.

You’ve done your research and you’re ready to start bidding but there are still a couple of things you need to ask:

• If there’s a dispute, who is the referee? Well, in the world of auctions, the auctioneer handles any issues to keep everything fair and efficient.
• Can I cancel a successful bid? If there are reasonable grounds for it, it will be considered after an investigation – you can cancel if some mechanical defects weren’t declared, and you won’t be charged any extra fees. But, if you back out of the deal and refuse to pay, you will lose that deposit.
• What happens if I don’t win any of my bids? The auctioneer will refund your deposit via EFT.

Your bid is successful – what now?

The auctioneer will send you an invoice, and you can only pay via EFT. Whether you’re hunting for your first car or looking for an upgrade, a vehicle auction is the fast way to get a great deal.

And, if you need some help getting there, we’ve got you covered with a variety of vehicle finance solutions.

Let’s make that dream car a reality!