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, Park Village Auctioneers’ Clive Lazarus expects that there will be a further shift towards practical, reliable cars that are economical to own and run. “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 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,” Lazarus says.
“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 kilometre readings. These are becoming a regular feature at PVA auctions .”
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 says 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.
Petrol prices and interest rates may soon be on the up and this will affect the overall affordability of vehicles.
Park Village Auctioneers