Safety tips for attending local car auctions
Cars on auction are the best way to get a used car and real value for your money. Not everyone can afford to buy a brand new car from scratch, and with the current state of our economy, many people are always on the lookout for impressive deals on vehicles.
Admittedly, some people have negative perceptions about auction cars, but not all auctions are a nightmare. Whether you are just starting out in the auctioning game or quite seasoned, you should always know what to look out for when attending car auctions.
Buying a car on auction will always remain one of the most cost-effective ways to purchase a car. With so many car auctions taking place all over Cape Town, a simple Google search and some bidding guidelines will sure find you your new ride. If you don’t understand the processes, that might cost you dearly. Take a look at our car auction safety tips below:
Familiarise yourself with the process
One of the most important safety tips in attending auctions is to familiarise yourself with the bidding process. Surely, you cannot just rock up at the auction and bid. You need to be strategic in how you do so, and that comes with understanding how procedures work.
One way to familiarise yourself with the process is by visiting a couple of auctions to get a feel of what it is like. It’s always recommended that you visit an auction house before you take part in your own bidding experience. This will make you feel at ease and comfortable.
Acknowledge hidden costs
When you draw up your budget and plan on buying a car on auction, make sure that you consider the hidden costs. To be on the safe side, increase your set budget and make provisions for these costs. Some auctioneers require a refundable deposit per car you bid on, meaning that if you are bidding on two cars, you should have two separate deposits.
Other costs that you will need to pay at an auction include:
- Administration fees.
- Value-added tax, which is currently at 14%.
- Auctioneer’s commission (this is dependant on the vehicle and auction house).
Check the service history
Most auctioneers will allow for pre-inspection dates where the public will view the cars on auction. When visiting for a pre-car inspection, make sure that you inspect the interior and exterior of the vehicle, and don’t forget to check the service history of the vehicle.
A car’s service history will let you know if the car was well taken care of. Many people do not ask for the service history at auctions, and this mistake can cost you thousands of Rands in problems at a later stage. Always check the service history of the vehicle to avoid this.
Check the VIN
When you have found a car that you like, make sure that you check the vehicle identification number. This 17-digit number will let you know the type of vehicle it is, and confirm the vehicle model and engine size. If you notice that the vehicle’s VIN does not match, this means that it has probably been rebuilt. Often, a too-good-to-be-true price means that you should be suspicious. There might be deep-rooted problems lurking under the surface.
Research the history of the vehicle
Many cars at auctions are government fleet cars that typically have high mileage, cars that have been involved in an accident, and sometimes stolen. Once you have made your pick and checked the VIN, make sure that you research the history of the vehicle.
If you are unsure about the history of the vehicle, you can go to your nearest police station to find out if the car has been reported stolen or not. Use online services such as Vehicle Check to verify information such as the VIN, model and make of the vehicle.
Final thoughts
Getting a car on auction can be a worthwhile, affordable experience. But it requires research. Many people get lucky on their finds, meaning they receive a beautiful vehicle that only requires a couple of thousands of Rands to refurbish. These are the cases you should be on the lookout for.
Make sure you are well informed about the procedures of the auctioning process and keep calm during your bid. If you want to feel more confident in your decision, bring a friend along with you or someone knowledgeable about cars and their prices.
Do a thorough check on the vehicle that you want to bid on. Although it is quite difficult to falsify vehicle details, it is not impossible. So, be wary, and don’t depend on the auctioneer to provide you with accurate information. Make sure that you are proactive yourself.