Fuel hikes drive car buyers to auction floors
The effects of fuel price increases may take several months to filter through but will almost certainly drive buyers towards more cost-effective vehicles.
So says Clive Lazarus of Park Village Auctions (PVA), who adds that lower vehicle inflation and reasonable interest rates have had a positive effect on recent car sales figures, and this is expected to continue.
Lazarus says the overall economy of commercial and passenger vehicles in the midto long term will be a greater deciding factor than before.
“Consumers understand that while the cost to acquire a car has improved, new vehicles depreciate substantially as soon as they leave the showroom floor and ongoing fuel increases will directly impact monthly affordability,” says Lazarus.
“To satisfy their appetite for a newer set of wheels wisely, buyers are seeking out secondhand vehicles from reputable sources. Genuine bank repossessed vehicle auctions represent an excellent way to do precisely that. Low mileage, relatively new models in every range [often still with service plans] are available at lowerthan-dealer rates on the regular.” This can be seen in the prices fetched on August 20 at one of PVA’s recent vehicle auctions.
A 2014 Land Rover Vogue SE SDV8 with 59,949km on the clock sold for R722,500; a 2015 Ford Ranger XLS 2.2 (87,636km) sold for R138,000; and a 2013 BMW 1 18i 5-door (159,035km) sold for R87,000.
“Finance is available on the floor and bidders have the added convenience of participating in the auction online — meaning the car you are looking for is no more than a few clicks away,” adds Lazarus.
Those interested in buying a car at auction or who simply want to see what the market has to offer should make their way to PVA’s next car auction at 221 Main Road in Martindale.
It starts at 10.30am on Wednesday September 12. Viewing can be done onsite the day before from 9am-4pm.