Tough economy gives vehicle auctions a boost

AT A time of economic uncertainty car buyers are turning towards auctions to find reasonably priced cars that would otherwise be out of their financial reach.

Park Village Auctions’s Clive Lazarus expects a further shift towards practical, reliable cars that are economical to own and run.

“To minimise risks these buyers also tend to look to reputable auctioneers where the preference is for latemodel cars, especially those originating from bank repossessions or fleet sales, says Lazarus.

“Petrol prices and interest rates may soon be on the up and this will affect the overall affordability of vehicles. Lending pressure may also have an adverse effect on the availability of finance and in these circumstances experience shows that buyers traditionally turn to the secondhand car market and auctions as a means of obtaining the wheels that buyers need at a more affordable rate.

“As a result, we are also expecting to see a shift towards more economical smaller vehicles that are clean and in good condition with low kilometres. These are always popular and are becoming a regular feature at PVA auctions.

“One just needs to take a look at the low bargain prices paid for vehicles at our auctions recently to realise buying a car through PVA auctions makes financial sense,” says Lazarus.

The National Association of Automobile Manufacturers of South Africa has expressed its concern that dwindling business confidence might result in declining new vehicle sales. On the other hand, auctioneers such as Park Village Auctions can look forward to a shift towards used cars and can expect to see increasing numbers of buyers at its auctions.