Buying a car at an auction seems simple enough in theory, or perhaps from what we’ve seen on TV; spot the one you like, decide what you’re prepared to pay for it and start bidding. In practice, of course, there is a little more homework involved. Knowing how the auction works before you register can help you avoid expensive surprises later.
“Auction buying can give consumers access to a wide choice of vehicles, but it is important to go into the process prepared,” says Lebo Gaoaketse, Head of Marketing and Communication at WesBank. “Know what you can afford, first of all, and take the time to understand the auction rules. The more you know before bidding starts, the easier it is to make a considered decision.”
Affordability
Pay particular attention to whether the advertised or bidding price includes VAT and whether there are auctioneer’s fees, buyer’s commission, administration charges or document fees on top of it. These costs can differ between auction houses and should be included in your calculations before you bid.
It’s also a good idea to check what happens to your registration deposit if you do not buy a vehicle, along with the auction’s cancellation and complaint procedures.
“Affordability should be worked out before you start shopping,” says Gaoaketse. “Set a figure that works for your household finances and stick to it. If bidding moves beyond that amount, be prepared to walk away.”
If you plan to finance the vehicle, look into this before the auction too. Know what you can afford and how you intend to pay before you bid. Winning a vehicle at auction does not mean that finance will automatically be approved, and any application will still need to go through the usual assessment process.
Inspect before you bid
An auction vehicle deserves the same scrutiny as any other used car purchase. Where the auction allows pre-sale viewing, use the time to do a thorough assessment. Check the bodywork for obvious damage and look at the condition of the tyres. On the inside of the vehicle, check general wear, whether lights turn on when the ignition is started and if there are any parts missing. Look under the bonnet, where permitted, and ask what service history is available.
If you are not confident assessing a vehicle yourself, consider taking a trusted mechanic or someone with good automotive knowledge along. Find out what inspection is allowed before arriving and make your decision based on the access and information available to you, and do not assume you will be able to take the car for a test drive. Refer to auction T&C’s on the website www.wesbank.co.za click on auction. You can also view assets that will be advertised 24h before the auction. Pay special attention to the T&C’s regarding “SELLING AS IS WITH NO DUTY TO REPAIR”. The auctioneer will provide you with comments of the known defects on an assets.
Check the vehicle’s paperwork
Check the vehicle identification number (VIN) against the documentation supplied and establish what ownership documents are available.
yellow should be removed, when we dealer stock ,we remove all fines and license fees, however, we cannot confirm this due to the inconsistencies at the license department. If anything is unclear or does not match the vehicle in front of you, flag it with the auction house before bidding. Once you have won the bid, it may be too late to resolve a problem on terms that suit you.
Make sure the auction itself is genuine
Preparation also means checking who you are dealing with. Fraudsters can create convincing adverts and social-media pages using the names or branding of legitimate businesses. Before paying a registration fee or deposit, verify the auction through the company’s official website or independently sourced contact details.
Be wary of anyone asking you to pay money to secure a particular vehicle outside the auction’s stated process. Pressure to transfer funds urgently or communicate only through informal channels should also make you stop and verify the offer.
Budget for what comes next
Once the vehicle is yours, normal total cost of ownership costs begin immediately. Arrange appropriate insurance before taking delivery where required and budget for registration and licensing. Depending on the condition of the vehicle, you may also need to allow for tyres, servicing or repairs soon after purchase.
This is where looking beyond the bid price becomes useful. A vehicle that fits within your bidding budget may be less affordable once its immediate ownership costs are included.
“Buying any vehicle is a longer-term financial commitment,” says Gaoaketse. “At an auction, the pace of the sale can make it easy to focus on securing the car in front of you. Give yourself the time beforehand to understand what you are buying and what it will cost once you own it.”
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