Business smarts: how to buy a business car at an auction

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business car - auctionbusiness car - auction


Business smarts: how to buy a business car at an auction

Having a company car is not only useful for employee transport, it can help to advertise your business to the world. And it can help your employees make it to work on time, meaning that your business’s productivity levels will increase significantly.

But, how do you find the perfect car for your business? You could start by looking at bank repossessed cars for sale, as this gives you a large variety to choose from, especially if you want a luxury vehicle.

If you are interested in buying a vehicle in bank car auctions, there are many brands, models and options available there. For example, the vehicle details such as the year and model are important aspects to keep in mind because an auction is different to a normal car sale. You can join an auction platform for free and take a look at the repossessed vehicles added daily to find one that meets your needs. Here are some tips that you can follow.


Get your documents in order

This is one of the very first steps to take, whether the car is for business or personal use. You will need to bring the following along with you in order to qualify to bid:

  • A copy of your ID document as well as that of any trustees
  • Your up-to-date driver’s licence
  • Proof of residence or business address
  • Three months bank statements for the business or your latest payslip if you are the sole proprietor
  • Proof of vehicle finance if you have applied for this

These documents are needed so that the dealer and auctioneer know that they will be selling to a legitimate business and so that they can do a credit history check on your business.

Some auction houses do allow you to test drive the car and will ask for a small cash deposit. The car inspection will be very basic but it will allow you to see what the engine is like and how the interior looks. For a business car, have a list of requirements ready so that you can quickly decide whether or not the car is suited to your needs. Some auction houses require a R5000 deposit per car that you would like to bid on, so keep your options few to save money.


Find out about warranties

Having a warranty on a company car is important. It will save your business money on repairs and will give you peace of mind knowing that it will be covered for repairs and services. You can buy a warranty from the auction house if the car you choose is no longer under one, or you could look for a car that still has a lot of its warranty left.

If there is an issue with the car, you are unable to return it or ask for a refund which makes having a warranty all the more important. This will cost you extra, however, so be sure that your budget accounts for this cost. You should bring along a financial advisor to the auction or ask your company’s bookkeeper to join you so that they are able to enforce the budget at all times.


What costs are involved?

Some of the costs involved include the deposit you will need to pay in order to bid. This is to ensure that you are a serious bidder and will not bid on a vehicle that you do not intend to actually buy.

You will also need pay for a FICA (Financial Intelligence Centre Act) registration, which involves providing proof of residence documentation, a copy of your ID document and documentation proving you are a legitimate business. This might sound like a lot of paperwork, but it is in place to stop people from committing fraud at the auction house. You can find all the terms and conditions of the various auction houses online.


Be budget-conscious

It can be very tempting to get caught up in the thrill of bidding on a car you really want. You should keep your budget in mind at all times and only bid on a car or cars that your business can truly afford. Remember to have all of the correct documents ready and always ask about warranties. Once you know the rules of your chosen auction house, you are ready to bid on the wheels your company deserves.

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