Pros and Cons of Auctions for Beginners
The auction industry continues to welcome a flood of “new blood”. That’s the word from Park Village Auctions’ Clive Lazarus, who says that the influx of new buyers (initiated by lockdowns) shows no signs of slowing down.
“The lockdowns of 2020 and 2021 brought new, tech-savvy buyers to auctions as we released more online bidding options. Now, with the state of disaster lifted and things slowly going back to ‘normal’, you’d think this trend would subside—but, instead, interest continues to grow,” says Clive.
For those contemplating joining the online auction scene, Clive explains the pros and cons of auctions.
Clive, “The first pro for any buyer at an auction is that you, the bidder, determine the price. The bids start low, and you compete up to the point that your budget allows.
“Auctions are also appealing because they are fast and transparent. The rules are made crystal clear before the auction starts. Bids are contended openly, in real-time, and the sale is concluded on the fall of the hammer. Sometimes the sale can be “subject to confirmation”, but the sale is (for all intents and purposes) a done deal.
“Anything that you buy at an auction is sold “as-is”. This is a pro and a con. Viewing is essential. It is wise to view and even bring someone with the proper knowledge to inspect the assets.
“Risk-wise, you must be able to follow through on the transaction if you make the highest bid. Once the hammer goes down, you are liable for the agreed price, failing which you will be required to pay damages.
“Buyers need to keep in mind VAT, transfer costs and applicable commission fees, which they are liable to pay on top of the winning bid amount.
“The remaining pros are that there are regular sales with a huge variety of vehicles. We get new stock all the time. The majority are relatively new models. Auction cars are generally cheaper than buying from a dealer, and it is relatively low risk from a scam or criminal perspective. However, there are sadly fly-by-night auctioneers. You must always check that they are SAIA affiliated.
Anyone can get in on the action. PVA’s next national vehicle auction will be held via webcast on Wednesday the 15th of June, commencing at 10:30 am.
Bidding will be online only, but in-person viewing will be open from 9 am to 4 pm on Tuesday the 14th at the following locations.
- 221 Main Road, Martindale, Johannesburg.
- Quarry Place, Off Queen Nandi Drive, River Horse Estate, Durban.
- Cnr R64 & Valentia Road, Waterbron, Bloemfontein.
More information is available under listing number 969 on www.parkvillageauctions.co.za
