As you may know, there are many different ways to buy cars. An online service like UsedCarsForSale.co.za, a classifieds like the Gumtree Cars sub-section, and of course, the good old way of checking out cars from different dealers without using the internet as your first point of reference regarding the eventual purchase. Another (but less popular) way is to buy cars on auction. Obviously, fewer people buy cars on auction than for example going through a website like ours, but the topic deserves to be explored some. We look at the pitfalls of buying a car on auction.

The main attraction to buying a car on auction is the supposed cheap prices. And as true as this may be, the overall benefit to you in the short and long run might not necessarily be that great. Here's why: most of the cars for sale on auction in South Africa are repossessed motor vehicles. They're taken as liquidated assets, from company fleets, or car dealers who can't move the cars. Sometimes, they're Code 3 classified from private sellers. All the cars to be auctioned in that session are catalogued prior to the start, so the public can know what's up for bidding. The bidding process includes the showcasing of the vehicle, and a brief description of it. Eventually, the bidder with the highest offer gets a chance to buy the car. That's all good, however, here's the downside:

  • Your winning bid might be higher than what you have budgeted for.
  • Although the car might have been relatively cheap, the bidding up could drive the price above the average cost of the same car from various dealerships.
  • And finally, as per auction rules, you might be expected to pay for the car within a reasonably shot amount of time.
The above are the main differences and negatives that you would potentially avoid if you had gone the traditional dealer route. I have listed other things to follow and look out for below.
  • Weight the benefits of going on an auction. If you're convinced that this is the way you want to buy your car, than at least go view what's on offer (in person) prior to going on the auction.
  • Research the vehicle you want to buy. UsedCarsForSale.co.za has tons of material to help you guide you so you can make an informed decision.
  • If you find cars within your budget, then that's cool, but remember with a bid there's also a buyer's fee, which you must increasingly accommodate for as the price of the bid increases.
  • Another downside is that you cannot test drive the vehicle, and many are usually not inspected for any faults. This brings me to another very important consideration: there are no guarantees or warranties that come with the car, nor any service book history and the sorts. Whereas the dealers we're used to and work with inspect the car, this option is unavailable in an auction. So if after taking the keys to your new vehicle, you find [warranted] mechanical faults, you can't claim against the seller.
Research is your best bet against making uninformed decisions.

Author: Pierre Theron