BUYING AT AN AUCTION (1)
It may be utterly confusing for a first-time visitor
(and sound a bit fast paced), but car auctions are rapidly
increasing in popularity. The lack of dealer margins
means that prices tend to be a little easier on the
wallet. However, the days of big bargains seem to be
over. Vehicles are increasingly being auctioned off
at market related prices.
Auctions have some advantages over dealerships –
the range of makes, and models, on offer is larger and
you don't need to bargain – you place a bid and
it wins, or not. But there are a few pitfalls, too.
Hot
tips!
- Fleet cars and nearly-new repossessed cars make
good buys because they are likely to have been
maintained well. It is possible to pick up a good
deal.
- Visit institutional auctions, where cars from
rental companies and banks are offered for sale.
Here you are more sure about the origin of the
car, unlike at a private auction, where the car
might even be stolen.
- Always ask the seller for the vehicle registration
document and, if possible, also the insurance
policy. If he can't supply them, become suspicious.
Ask for proof of identity and address, and check
that it appears on the registration document.
- For more information and a list of all the recognised
auctioneers, visit the South African Institute
of Auctioneers (SAIA) website at www.saiauction.org.za
You should only attend auctions organised by auctioneers
that belong to SAIA (South African Institute of Auctioneers).
Backyard auctions might result in you buying a stolen
car, or a good-looking vehicle that is actually in
very poor mechanical condition.
The cars on offer can vary greatly in condition.
When working out a budget, factor-in reconditioning
work. And never go over this budget. Take a magnet
along to look for body filler, check the service books,
and inspect the car for oil leaks. The leading auction
houses usually offer the opportunity to inspect a
vehicle before the auction starts. Take a friend along
who knows something about the mechanical aspects of
cars.
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