You can find repossessed cars under R50,000 in South Africa at car auctions. If you were to stretch your budget and look for vehicle repossessions for sale under R100,000 you will have a lot more options. But if fifty thousand rand is your buying budget then there are enough vehicles available to choose from.
Repossessed cars under R50,000 can be bought at vehicle auctions in:
- Johannesburg (Gauteng)’
- Pretoria (Gauteng)
- Port Elizabeth (Eastern Cape)
- Durban (Natal)
- Bloemfontein (Free State)
- Kimberly (Free State)
- Cape Town (Western Cape)
South Africa car auctions and repossessed vehicle sales are growing in frequency and popularity. Largely due to people’s financial struggles because of the COVID pandemic.
When people are unable to make their monthly repayments on their vehicles. Or when the bank needs to repossess their wheels to balance out a loan often their cars are taken away.
Banks like ABSA, Nedbank, Standard Bank, and Wesbank and companies like Aucor and Burchmores are quite happy to sell vehicles. At a lower price than car dealerships in order to make the money back that they need.
These types of vehicle auctions happen regularly across the country in Gauteng, Durban and Cape Town. Primarily in busy suburbs or the city centres.
Bank Repossessed Cars Under R50,000
So bank repossessed cars selling for under R50,000 are a little harder to come by. Unless you are happy to buy an accident damaged vehicle.
Dealers often buy these vehicles and have them repaired by panel beaters for re-sale at their locations.
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However older model cars that have been repossessed by the bank can also sell in the under R50,000 price bracket.
So if you are happy to buy a second or third hand car that is an older model and possibly has a high kilometer reading on the clock then you could be lucky.
Types of repossessed cars under R50,000 for sale at vehicle auctions include:
- Ford Fiesta
- VW Polo
- Chevrolet Spark
- Kia Picanto
- VW Chico
- Hyundai Atos
- Toyota Tazz
- Opel Corsa
- Renault Clio
Just because the older models may have high mileage doesn’t mean to say they are no good. Plenty of these cars are still in good running order.
Repossessed Car Auctions in South Africa
In Gauteng, Durban and Cape Town buyers are looking for South Africa car auctions and repossessed vehicle sales to get the car they want. At the price they want.
People are finding it increasingly difficult to buy new cars because of the ever increasing prices. So buying decent repossessed cars for under R50,000 is a low price these days.
Vehicle auctions are organized by different auctioneers such as:
- Burchmores
- Aucor Auctions
- Wesbank Auctions
- SMD Car Auctions
- MFC Car Autions
When banks repossess a car, they need to get their money back as soon as possible. So the price can be lower. Whether you bank with ABSA or Standard Bank or would prefer to buy at an Aucor or Burchmores auction. You will find a variety of cars at different prices to choose from.
This doesn’t mean that the cars you’ll get at ABSA, Nedbank, Standard Bank or Wesbank auctions will be any better or worse than one you’ll get from Burchmores or Aucor. It just means the prices will vary from one auction to the next.
This is why it is a good idea to attend one or two so that you can gauge which is in your R50,000 price range. It is not difficult to find out more information about each car before you decide to bid.
Remember that cars are sold as seen. Therefore it’s more difficult to return them if they break. This is why the prices are lower at repossession auction events in SA.
Buying a Cheap Repossessed Car Under R50,000 Can Have The Following Disadvantages
Uncertain History: Repossessed cars may have unclear or incomplete maintenance records, accident history, or mechanical issues that led to repossession.
Without a comprehensive history you might not know what you’re getting into.
Limited Warranty or None at All: Repossessed cars come without warranties. Even if there is a warranty, it might have limitations. Leaving you responsible for the price of repairs or maintenance shortly after purchase.
Potential for Damage or Neglect: Repossessed vehicles may have been neglected or improperly maintained by the previous owner. Leading to hidden damages or mechanical problems that may not be immediately apparent.
Lack of Inspection Opportunities: Unlike purchasing from a car dealer where you can inspect and test drive the vehicle before buying, repossessed cars may not offer you such opportunities.
You might have limited chances to thoroughly inspect the car increasing the risk of buying a lemon.
Limited Financing Options: Financing a repossessed car can be challenging. Lenders may be cautious about providing loans for such vehicles due to their uncertain history and condition. Which could result in higher interest rates or stricter loan terms.
Potential for Hidden Liens or Outstanding Debts: There’s a risk that the previous owner may have outstanding debts or liens associated with the vehicle. This can lead to complications or legal issues for the new owner.
Limited Return Policies: Unlike buying from a dealership where you may have some recourse if the car doesn’t meet your expectations, buying a repossessed car often comes with limited or no return policies. Leaving you stuck with the purchase regardless of any issues that arise.
Considering these factors it’s essential to conduct as much research as you can. Inspect the vehicle if possible and consider the potential disadvantages before purchasing a cheap repossessed car.
To Summarize
In summary we have learnt that repossessed cars under R50,000 are available in South Africa.
Therefore it depends what is easiest for you as the buyer.
But be cautious and pay attention to the disadvantages we mention. Because it’s no use saving money in the first place by buying a repossessed car at a cheap price, only to be left with repair costs afterwards.
Have a look at the websites of the car auctioneering companies we mention. Because some of them have online car auction events at which you can bid online for some of the cheaper vehicles you may be interested in.