Visit the bank auctions to purchase preowned cars repossessed from Nedbank, Absa and Standard Bank.
Most of us who drive hate the fact that we spend a small fortune here in South Africa when it comes to purchasing a second hand vehicle. Of course, there’s nothing wrong with buying a cheap car from Gumtree. Or Junk Mail or spotting a bargain in your local newspaper. But a lot of really good deals on wheels can be found at your local bank repossession auctions.
Nedbank, Absa and Standard Bank are 3 good examples of major financial institutes that hold regular events around the country. To sell off stock in an effort to recover lost funds due to borrowers defaulting on payments.
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Most of these events happen in or around Cape Town, Johannesburg, Durban and Port Elizabeth. Therefore, it can be worth the trip if you live outside these area’s. Due to the fact that you can pick up a relatively new vehicle for a lot less money elsewhere.
In actual fact, many of South Africa’s second hand car dealers are attending bank repossession auctions on a regular basis. Hoping to buy stock for their own dealerships.
So that nearly new VW Golf you saw down the road at your local dealership may well have been bought at an auction. For a lot less cash than advertised.
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But of course, that’s business and you too can buy these vehicles at similar prices to your local dealer. With some time, research and education of how the auctioneering process works.
Where to Start a Search for Bank Repossessed Cars
Our advice, right here online for a start. Open up your Internet browser and type something like “Absa bank repossessed cars” into the search engines. You will be get results with a few sites that offer information on where and when the next auction events will be held.
What you won’t normally find, due to the fact that so much stock is coming and going all the time, is lists of the repossessions that are due to be sold at each event. However, closer to the time, you can contact the auctioneering company. And either request a list of vehicles for sale. Or if you can get to the premises, even view the stock a day or two before.
Just note that it is not possible to test drive a bank repo car. So take a good mechanic to help you if you’re not sure what you are looking at.
Another good piece of advice we can offer is to attend a few events beforehand. Because you can get a good feel for what happens and how the auctioneering process takes place.
The last thing you want to do is dive right in with no experience. Then get caught up in the excitement and in addition, end up in a bidding war against an experienced seller. And drive away in a vehicle you paid way too much cash for!
Finance for Repossessed Vehicles
A question many people ask, is it possible to buy a car at a bank auction with finance or do I need cash? Nedbank, Standard Bank, Absa, in fact, all the major banks in South Africa will offer you finance. So you can buy a vehicle from these events providing you meet the usual requirements to qualify for a loan. Such as a steady income, good credit record etc.
Very often the banks have offices on site at these events. Which saves you as a potential buyer from a trip to your nearest branch.
Whether you are buying a vehicle at one of these events cash or with finance approval, make sure you don’t get carried away and go over your budget during the bidding process.
Also bear in mind that you will be purchasing a vehicle “as seen”. So if anything goes wrong after you have purchased, it’s at your own expense.
As stated above, we recommend taking a mechanic or a friend who knows something about buying a second hand automobile with you if possible.
Educating yourself on the bidding process. And spending time learning as much as you can about how a bank repossession auction works in South Africa is key to purchasing your bargain.
With enough knowledge, common sense and some self control during the bidding process, you can quite easily find yourself driving home in a car that’s practically new. At a fraction of the price you may have otherwise paid at your local dealership.