Why should you buy your first car from an auction

Buying your first car can be both exciting and overwhelming.

It provides you with the opportunity to experience the freedom of owning a car.

The challenge, though, is that there are many vehicles available on the market, which can make the process overwhelming. On a more positive side, it also means that you have a high chance of finding a vehicle you truly love. Over the years, the vehicle industry has expanded and now provides many options, such as buying from a dealership, online, private seller, or at an auction. 

All of these second-hand options make buying a vehicle even more affordable to people, plus you can get a lower insurance premium. This makes buying a pre-owned vehicle a good financial decision. 

With so many used cars for sale near you, it can be difficult to decide which vehicle you want and where you wish to buy it. Your presence on this page means that you’re already considering your options, including buying a car on auction in South Africa.

And, we can’t blame you as many benefits come from purchasing a vehicle from a repossessed car auction, which we will discuss below. 

The benefits of buying your first car from an auction 

When looking for a vehicle to purchase, most people’s first choice is to find a private seller or go to a car dealership. But that doesn’t have to be the only option. Auctions have just as many advantages as other alternatives, namely:

It’s affordable 

The first obvious reason is the selling price.

If you were wondering “how affordable are cars at an auction?”, we’re here to tell you that you can find a really good bargain at an auction.

The main reason why repossessed cars at an auction are more affordable is that they’re sold to cover the loss. Vehicles at an auction were repossessed from customers who could no longer keep up with their monthly repayments, leaving lenders to repossess the vehicle and sell it to cover the cost of financing the vehicle.

Car dealerships, on the other hand, are selling vehicles to gain a profit, which is what sets the two apart. Another reason why you can get an impressive deal at the auction is that they are trying to sell vehicles fast to make room for other vehicles. 

The process is efficient 

Unlike going to a car dealership where you will be persuaded to buy a vehicle, the process of an auction is a lot more in your control, and you have the final say.

You get to decide what type of vehicle you want to purchase and at what price. As long as you’ve registered to bid, you’re on time for the bidding, you’ve put a deposit down, and you can finance an auction car and win the bid, the vehicle will be yours.

If you’re someone who doesn’t like being pressured or convinced by someone as to why you need to purchase a specific item, then going to an auction is ideal for you. The process to purchase an auction car in South Africa is also smooth and can be done online, so you won’t have to worry about dealing with too many people or feeling overwhelmed. 

Wide range availability 

Whether you’re looking for a vintage car or not, you have a high chance of finding a vehicle you love at an auction.

To add another benefit, you can purchase it at an affordable price, for far less than what you would get at a dealership. This is why auctions have become so popular because people know that they have a wide selection to choose from.

And even if they don’t find the vehicle they wanted before, there is still a chance for them to find a vehicle they love.

How to purchase from an auction 

Now that we’ve given you the main benefits that come with purchasing from a repo auction, here is how you can buy your first car. 

Create a budget 

Buying your car at an auction is affordable, but you do need to go into it with a budget.

Most South Africans cannot afford to purchase a vehicle without any financing from a lender.

As a graduate who recently started working, you can apply for graduate finance, which is car finance for graduates who don’t have a credit history, as you’re only entering the credit world now.

Having your finances in order allows you to know exactly how much you have to spend and which vehicles fit your price range.

Choose the right auction house 

With so many scams online, nowadays you need to be vigilant when purchasing products or goods – especially your first car.

Since online auctions are the new normal, you need to be aware and ensure you’re using a reputable online auction house. Take time to do your research, check out reviews on social media and online before deciding on buying from an auction.

You can also find out from your lender whether they are in partnership with the auction house you’re considering.

That way, you can streamline the process and also find an auto auction house you can trust. 

Attend an auction 

For someone who is purchasing your first car at an auction, it is in your best interest to attend a few auctions first.

Take note of how everything works and what is expected of you as the bidder. That way, you can come prepared and know exactly what to do.

This will also give you the chance to ask the auction staff a few questions if you’re unsure. 

Go to a viewing 

Before you decide on the vehicle you want, be sure to go to a viewing.

Auction houses let bidders come and see the vehicles a day before the auction. This will allow you to inspect the vehicle you’re interested in before bidding.

And while you can’t test drive the vehicle, you still get to see it in person before making a purchase.

Final thoughts  

Buying at a car auction is different from going to a dealership or private seller.

However, it has just as many pros, and if you’re trying to save money, then you should consider buying at an auction.

As long as you have your finances in order, and you’ve done your research, nothing will hold you back from finding the right car. But, remember that if you can’t find the right vehicle, then it’s okay to wait.

The list at a car auction is always changing, and you will find the right vehicle if you’re patient.

We hope that these tips were helpful; and happy bidding.