Repossessed motor cars auctions are the easiest way to obtain an automobile if you cannot afford to pay the full price for a new one. The credit crunch makes many of us struggle to hold on and it is this credit crunch that forces us to let go of our possessions.
If you take the time to find or look up these auctions you will find many cheap vehicles even though they are pre-owned and second hand. You can visit the banks that are involved in the events and allow them to finance you and this will allow you to place your bid at the auctions.
Every once in a while, local vehicle auctions are conducted in several areas of South Africa to sell bank repo vehicles below the market price.
Repossessed cars are those which have been confiscated by the bank, the police, customs,or insurance agencies for certain reasons like inability to pay off the car loan, criminal offence, or a previous accident.
Thus, in an auction one might find an assortment of motor cars at almost any condition. In order to get a reasonable deal, one needs to be smart and not just focus on what the eye can see.
Here are some tips to help you make the right choice.
Tip#1. Know the Auction Rules and Schedule
Different auctions have different rules. Inquire about registration fees and whether this is just available to local residents. Schedules may or may not be announced so search the internet for any car auction schedules available in your locality.
If an auction is announced, browse through a list of the repossessed cars included in the auction. See what makes and models are available and what fancies your interest.
Research the current market price ranges for such each brand you want to check so that when you go to the auction, you have an idea on the maximum bid applicable.
Tip#3. Set a Budget
After researching, one might already have an idea of what cars are available in a certain auction. However, there are times when there would be no list and one just has to simply come to the auction hours before to look at what cars are available.
The budget setting should be done before going to the auction though. This helps one from being distracted by the more expensive vehicles. If you know your budget, you will know where to focus.
This helps you spend more time inspecting the vehicle you can afford and possibly get a better deal in the end.
Tip#4. Inspect the Car Properly
One will be given ample time to look at vehicles and do some quick inspection before the auction bidding would start. If you are not a car expert, it would be best to bring someone who knows more about cars you could trust like a friend mechanic. Inspect only the cars you plan on buying not the ones that distract you because they look good.
Remember that these are repossessed cars. The previous owners are not around to tell you about the car and how it has been maintained in the past. There is data available though that will tell you the number of years it has been used.
Stay away from cars that are more than 10 years old. – The average age of a good car would be 3 to 5 years.
- Look for a brand that is known for quality and durability. This will ensure that the car will not quickly lose their value. Try to avoid luxury brands like Mercedes Benz or BMW even if they sell cheaply because they are expensive when it comes to maintenance.
- Check the mileage from the odometer. This will tell you how often the car has been used. Less than 100,000 kilometers is already a good car. But also try to compare the interior of the car whether it coincides with this number because there are some who try to tinkle with the odometer.
- Check the condition of the engine and the body. Try to see if there is no oil leakage or errors in the transmission. See if there is no rust in the chassis. Look at the windows and the doors whether they open or close properly.Check the overall body of the car for any dents or scratches. A minor scratch or dent is fine as long as the engine is in top condition. Check the lights, windshield, and other accessories inside the car like the stereo or air conditioning.
- Check whether the car has been in a major accident or has been submerged during a flooding incident in the past. If they have then cross them from your list.
Buying from auctions can be challenging and some people might advise you not to do it. But if you know what to look for, know what to avoid, and play your cards right you might just be able to get a good deal.
Keep in mind that you will be going up against many other bidders that are interested in the same vehicles you are, so make sure that you visit one of the big banks on the day of the event and see what they are prepared to finance in order for you to take part in the bid.