Shift towards car auctions

ECONOMY: BUYERS ARE LOOKING AT LATE MODEL RELIABLE VEHICLES These cars would otherwise be out of most buyers’ financial reach.

Auctions represent an affordable means of purchasing vehicles. In times of economic uncertainty car buyers are increasingly turning towards auctions to find reasonably priced cars that would otherwise be out of their financial reach.

Looking at the current economic landscape, PVA’s Clive Lazarus expects that there will be a further shift towards practical, reliable cars that are economical to own and run.

“In order to minimise risks these buyers also tend to look towards reputable auctioneers where the preference is for late year-model cars, especially those originating from bank repossessions or fleet sales.

“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 second-hand 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 kilometer.

“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 that buying a car through PVA auctions makes financial sense,” says Lazarus.

In a recent statement released by the National Association of Automobile Manufacturers of South Africa (Naamsa) the association expressed concern that dwindling business confidence may result in fewer new vehicle sales.

Lazarus concludes that on the converse side of this, auctioneers like Park Village Auctions can look forward to a shift towards used cars and can expect to see increasing numbers of buyers at its auctions.