Don’t have your Nedbank ID yet?
Nedbank ID single sign-on gives you full digital access to Nedbank’s banking and lifestyle products and services on the Money app or Online Banking.
Log in
Log in to Online Banking or another one of our secured services.
Bank how and when you choose to, with the low fees or extra benefits you want.
Shop online or instore and earn rewards for it, with up to 55 days interest-free credit.
Buy foreign banknotes, transfer funds or shop globally with a travel card.
Great interest rates, with great flexibility and access to your money when you need it.
Personalised interest rates for affordable loans from R2,000 to R300,000.
Loan up to 100% of the property value or up to 105% if you are a first-time home buyer.
Choose a plan for yourself, family or build your own cover to suit your needs.
Get cover for your car, building, house contents, valuables and more.
Cover your bond, credit card, overdraft, loan and car repayments.
Choose a plan for yourself, family or build your own cover to suit your needs.
Take the right steps to achieve your financial goals with expert financial planning.
Plan for everything you own and owe, so your estate is in order when you’re gone.
Accounts
-
Everyday banking Safety, convenience and rewards
-
Youth banking For under 16s, or under 25s
-
Accounts -
Digital wallet Your phone is your bank account
-
Private Wealth The globally integrated account
-
Goal saving Easy access to interest earned
Credit cards
Digital banking
Switch to Nedbank
Fraud awareness
Forex
Rewards
Accounts
-
On demand Money available at any time
-
In 24 hours Cash in your hand the next day
-
In 32 days Funds ready within a month
-
End of term Investments left until maturity
Investment services
Share trading
Personal loans
Home loans
Student loans
Overdrafts
Vehicle finance
Solar finance
Life cover
Funeral cover
Short term insurance
Credit Life
Travel insurance
Is your business covered?
Secure Investments
Financial planning
Estate, wills & trust services
Nedbank Private Wealth
Speak to a financial adviser
Blog
Talk to us
Find us
- Login & Register
- Online Banking
- Online Share Trading
- NetBank Business
- NedFleet
- Nedbank Greenbacks
- Nedgroup Investments
- Nedbank ID
- Bank
- Accounts
- Credit cards
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Rewards
- Explore Bank
- Accounts
- Everyday banking
- Youth banking
- Accounts
- Digital wallet
- Private Wealth
- Goal saving
- See all accounts
- Get help choosing
- Family Banking
- Refugees and asylum seekers
- FAQ
- How-to guides
- Everyday banking
- MiGoals Premium
- MiGoals Plus
- MiGoals
- Discontinued accounts
- Youth banking
- Nedbank4Me
- Digital wallet
- MobiMoney
- Private Wealth
- Private Wealth Bundle
- Goal saving
- MyPocket
- American Express
- Amex Gold
- Amex Platinum
- Digital banking
- Switch to Nedbank
- Fraud awareness
- Forex
- Send and receive
- Rewards
- Save & Invest
- Accounts
- Investment services
- Share trading
- Explore Save & Invest
- On demand
- Club
- Money Market
- Stokvel
- In 24 hours
- JustInvest
- PlatinumInvest
- Tax-free Savings
- MoneyTrader
- EasyAccess Fixed Deposit
- PrimeSelect
- In 32 days
- Electronic 32Day Notice
- 32Day Notice
- End of term
- Tax-free Fixed Deposit
- Electronic Fixed Deposit
- Electronic Optimum Plus
- Platinum Fixed Deposit
- Fixed Deposit
- OptimumPlus
- Investment services
- Share trading
- Borrow
- Personal loans
- Home loans
- Student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Explore Borrow
- Personal loans
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Explore loans
- FAQ
- How to guides
- Consolidation loan
- Secondhand car loan
- Home improvement loan
- Exclusive short-term loan offers
- Home loans
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Explore home loans
- FAQ
- How to guides
- Track application
- Building loan
- Switching home loan
- Repossessed properties
- Start your home buying journey
- Solar-energy Finance
- Earn R29,600 p/m or less? See offer
- HomeVision extra funds
- Home-buying Toolkit
- Managing your home loan
- Student loans
- Explore student loans
- Overdrafts
- Vehicle finance
- Solar finance
- Insure
- Life cover
- Funeral cover
- Short term insurance
- Credit Life
- Travel insurance
- Is your business covered?
- Secure Investments
- Explore Insure
- Life cover
- Get a call back
- Explore MyCover life
- Funeral cover
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Get a call back
- Explore MyCover Funeral
- Individual R10,000
- Individual R30,000
- Family Cover
- Build your own cover
- Short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Get a call back
- Explore MyCover short term insurance
- Vehicle insurance
- Building insurance
- House contents insurance
- Valuables insurance
- Credit Life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Get a call back
- Explore credit life
- Home loan credit life
- MFC Vehicle Finance Assurance
- Overdraft Assurance
- Balance Protection Plan
- Personal loan Assurance
- Travel insurance
- Is your business covered?
- Secure Investments
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Get a call back
- Explore MyCover Funeral
- Guaranteed Growth Plan
- Guaranteed Income Plan
- Plan
- Financial planning
- Estate, wills & trust services
- Nedbank Private Wealth
- Speak to a financial adviser
- Explore Plan
- Financial planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Investment planning
- Insurance planning
- Give
- Retirement planning
- Estate, wills & trust services
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Will drafting
- Ensure your estate is managed by an executor | Nedbank
- Trust services
- Financial accounting
- Tax services
- Leave the admin of your estate to us, and not to your loved ones | Nedbank
- Nedbank Private Wealth
- Speak to a financial adviser
- Learn
- Blog
- Explore Learn
- Blog
- Contact us
- Talk to us
- Find us
- Explore Contact us
- Talk to us
- Find us
Have you thought about buying a car at auction?
Have you thought about buying a car at auction?
Staff writer
Posted 18/07/2023 2 mins
Are you planning to buy car? It may be worth bidding for one at an auction.
Buying a car can change your life by giving you independence of movement. Have you ever thought about buying a car at an auction? Many car dealerships source vehicles for their showrooms from auctions, so effectively you can buy a car at the price a dealership would pay before adding a mark-up. If you buy a used car in a private sale from another owner, they’ll probably set a price based on what they feel the car is worth, so once again, you could end up spending more than you want to.
On the other hand, at an auction there is a wide range of cars in good condition worth buying, and you can decide the maximum amount you’re prepared to spend beforehand and set that as your top bid. The auctioneers will set a reserve price – the minimum bid that will be accepted – based on the popularity, make, model, age and condition of the car (or based on the amount still owed on a vehicle).
Depending on the demand for a particular car, you might get it for a low bid close to the reserve price. An auction involves competitive bidding, of course, so you could face other buyers trying to outbid you – that’s why you should set your maximum bid in advance and stick to it. Never bid more than you think a car is worth. You might have to attend several auctions before you find a car that you like, and that you can buy with a successful bid that doesn’t blow your budget.
But why, you may ask, are vehicles sold at auction in the first place?
5 common categories of vehicles sold at auction
1. Repossessions
The most common reason for cars ending up at auction is repossession. When a car owner defaults on their loan payments, the credit provider will do their best to work out a payment plan with the client. If the client cannot pay even restructured amounts, the lender may have to resort to legal action leading to repossession of the vehicle. Repossessed cars are often sent straight to public auction, where auctioneers sell them on behalf of the credit provider.
2. Trade-ins
Often at an auction, a successful bidder who has just bought a vehicle needs to trade in their current car to help them pay for the new one. Much like trading in at a dealership, buyers can use the money they get for their car at auction towards paying for the one they’ve just bought.
3. Recycled inventory
Not all vehicles at auction will be second-hand. Sometimes they find their way to the auction hall while still brand-new. A car may have been on the showroom floor for a long time and not found a buyer. Dealerships will want to maximise profitability by getting rid of old stock that isn’t selling. They can use the cash they make by auctioning these vehicles to invest in new inventory that’s in higher demand, often at the same auction.
Know which cars you want to bid on and the maximum bid they’re worth before the auction starts
4. Deceased estates
If a person dies while still owing money on a car loan agreement, and the heirs of the deceased estate are not able to take over the payments, the estate may have to sell the car to pay off the financing. Even if a vehicle is fully paid off, the executor may include it among assets that are sold to help pay off other debt owed by the deceased estate. Alternatively, the heirs may simply not need the car and want to sell it – these are all common reason vehicles owned by deceased estates end up at auction.
5. Surrenders
If they realise that they are not going be able to make future loan repayments for whatever reason, owners can choose to surrender the vehicle to the lender for auction voluntarily. Many take this route to avoid the stress, red tape and expense of repossession. With the help of the financial services provider, they can sell the car at auction and pay off the debt, so they will not be burdened by further payments while they save for a deposit towards a more affordable vehicle.
Does the reason a car is being auctioned matter?
It’s tempting to draw conclusions from the reason a car is being sold at auction, but this isn’t always helpful. Does a surrendered car indicate that the previous owner had a realistic, responsible attitude to money, and can you therefore assume they maintained and drove the vehicle carefully? Does a repossessed car indicate the opposite? Does old inventory mean the car stayed on the showroom floor for so long because other buyers knew something you don’t? You can never be sure of any of these assumptions.
The fact is, vehicles end up at auction for a variety of reasons. Just as you would when buying from a dealership or a private seller, you should be looking for a car in good condition that suits your needs, your lifestyle and your pocket. Do your homework on all the vehicles being auctioned, from reading trusted reviews on different models to checking the age, mileage and service history of the specific cars on offer. If you prepare thoroughly, you’ll know which cars you want to bid on and the maximum bid they’re worth before the auction starts.
For further peace of mind, only attend auctions that offer a condition report on each vehicle, so that you know the vehicle has been assessed and declared safe and roadworthy. Beware of online scammers pretending to be representatives or affiliates of an auction, who may claim that they can help you to ‘bid and pay’ online. It’s always safer to visit the auction in person, after researching it to verify that it is legitimate, before you conduct any transactions.
Find out more about car auctions and how to attend one at MFC Auctions, or call 011 879 9321.