Auctions selling repossessed cars from the banks have their pros and cons but are extremely interesting to attend as a buyer or as an observer. Bank repos come in a variety of shapes, sizes and condition because they are all pre-owned and are often repossessed because their owners are unable to make their payments. In South Africa it is extremely expensive to buy new vehicles – particularly if you don’t have access to additional finance from your bank. Few cars are actually made in the country which means we must pay the high import costs before we can drive the car of our dreams. Second-hand cars have substantially lower prices and when sold at auctions that price difference is even greater.
Newspapers and online social networking sites often advertise auctions selling repossessed cars so if you are interested they are a great place to start your search – just keep an eye out for those ‘for sale’ signs. Bank repos are sometimes even sold wholesale, which is great if you’re looking for a fleet of bakkies for deliveries, or several vehicles to be branded with advertising for your company. The cars are pre-owned which means that they are often sold as is. It is a good idea to ask to test drive the vehicle, or to be allowed to look inside the car to make sure it has all of its essential bits. If it looks to be in good condition, but is a bit out of your price range, then chat to the banking staff at auction sites about finance or loans to pay for the additional extras.
Even if you’re not in the market for pre-owned vehicles, attending bank repos auctions is a great way to get an idea of how they work and what sort of prices you can expect to pay. So keep a look out for those for sale signs and you just might see places with auctions selling repossessed cars in your local area.