Smart bidding: Protect yourself at live and online car auctions

Smart bidding: Protect yourself at live and online car auctions

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The car-buying experience isn’t an easy one, especially in today’s challenging economic times where consumers prioritise affordability, which often leads them to buy cars from auctions.

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While auctions can offer an affordable option in the car buying process, it is easy to succumb to the excitement of a live auction and lose sight of the potential savings. However, it’s important to do your homework and understand the process, as well as the risks involved, when buying a vehicle from an auction.  

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Therefore, it’s essential to be aware of your surroundings at the auction, as scammers may be present and preying on unsuspecting bidders. Also, it’s crucial to understand the intricacies of the auction process to avoid potential pitfalls. Therefore, WesBank provides important guidelines to auction attendees to ensure a smooth and successful buying experience. 

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Research and preparation

First and foremost, it’s important to research and understand the vehicles that are being auctioned. We recommend visiting the auction centre in advance to inspect the vehicles and review any updated catalogues.

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Stay informed

Staying updated on any changes can help avoid unforeseen surprises, which is imperative. Be sure to check for last-minute changes to the auction catalogue. At a bank auction, the bank reserves the right to remove vehicles without prior notice. 

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Registration and documentation

To register as a valid bidder, you will be required to provide necessary identification documents and proof of residence, as well as pay a refundable deposit, which will be forfeited if a purchase is not paid for. 

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Auction participants should also be aware that a real WesBank auction will never require a deposit to reserve a specific vehicle. Also, it’s vital to understand that only registered bidders are eligible to make valid bids. 

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Clarify terms and conditions

Though often overlooked, it’s imperative that you familiarise yourself with the terms and conditions of the auctioneer. These may include payment procedures, buyer obligations, and refund procedures to avoid any misunderstandings. 

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Beware of scams

It’s a general rule when it comes to online platforms to avoid offers that seem too good to be true. It's important to ensure that you are dealing with reputable auction houses and authorised representatives to avoid scams that pose a serious threat to consumers. More and more consumers are falling prey to online scams, and to combat this threat, WesBank offers important advice to help consumers protect themselves against auction scammers by educating and empowering individuals with the necessary knowledge to recognise and avoid fraudulent schemes. 

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Be wary of offers that seem too good to be true; trust your instincts; and always proceed with caution to avoid fraudulent transactions. Stay alert for red flags such as sellers requesting payment outside the auction platform, reluctance to provide additional information or photos, and unclear or inconsistent product descriptions.

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Report any suspicious activity to the auction platform as soon as possible to help others avoid scams and contribute to a safe online marketplace. By following these guidelines and exercising caution, buyers can confidently partake in vehicle auctions and increase their odds of securing a quality vehicle at a fair price.

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