Buying Car in Auction House Is Safe, So Don't Worry

Auction can be a solution for those who want to buy a car, especially if they want to buy a car at a price below the market price.

One of the things that must be paid attention to when buying a car through an auction is the documents of ownership. This is because most of the cars put on auction are cars confiscated over unpaid loan. However, according to IBID-Balai Lelang Serasi Chief Operation Officer Daddy Doxa Manurung, auction houses already anticipate the matter.

Doxa said that in an auction brochure, the status of the vehicle documents is always described. Moreover, auction houses are committed to help customers if they face trouble when processing the documents.

Doxa admitted that auction houses still often face problems with documents. For instance, previous owner might block the vehicle registration document so that the new owner cannot have the ownership transferred. "This can happen and might only be noticed a few months after the auction. We won't abandon the case and will instead talk to the leasing company so that they can explain it to the Police," he said.

Doxa added that if the case cannot be settled, the money paid for the vehicle will be refunded. He said, however, that something like this does not happen often. Every month, maybe only three to five cars have document problems. Compare this with the number of cars that can reach 400 units in one auction. Added to the fact that IBID in Jakarta routinely holds auction twice a week, meaning that it holds auction about eight times in one month.

To prevent such inconvenience, auction houses check the documents prior to the auction. If there are problems with the ownership document, the status will be openly announced to bidders. IBID, for instance, usually check with the provincial police whether the documents of a vehicle are blocked or not before the auction.

In addition to showroom, auction can be an option for people who want to buy used cars. There are benefits offered by auction, including the variety of the cars that bidders can choose from. This is different from a showroom that can only accommodate a limited number of cars.

Doxa continued that not only there are various types or models, but the prices offered are also diverse. Thus, people can choose the car that fits their financial condition. "The auction house, IBID for instance, will share complete information about the car's condition, over which the price will then be determined," Doxa said.

Another benefit, Doxa added, is that the price will be more attractive than the price in used car market. With luck and some competition or price negotiation, the customer can get the best price.

On the other hand, Doxa said, auction process is quite time-consuming, because there can be hundreds of lots for bidding in one auction. A potential buyer can spend all day, especially if there are a variety of products they want to check. This is one of the reasons why auction houses are still not popular among individual customers.

Doxa explained that out of an average of 10-150 bidders of vehicle auction held by IBID every Wednesday and Saturday, about 90% are used car dealers. Retail customers only make up about 10%. "Actually, vehicle auction can be joined by anyone, even individuals," he said.

However, Doxa continued, the condition can be overcome,using the live auction option from IBID. Retail or individual customers can join an auction real time through the Internet, without having to go to the auction venue.

Moreover, IBID always ensures information openness regarding the cars to be auctioned through online and offline platforms. For instance, an open house is regularly held several days before the auction day. During the event, bidders-to-be get the opportunity to check the conditions of the cars they want. IBID has thoroughly inspected the conditions of the cars and displayed the report on every car to make it easier for the customers.

For digital platform, IBID has owned a website that makes it easier for customers to find cars through auction. Initial steps to become a bidder can be done online on www.ibid.astra.co.id. People can register, look for cars, choose an auction schedule, make payment, and bid in an auction real time without having to go to IBID.

IBID, a subsidiary of PT Serasi Autoraya (SERA) under Astra, regularly holds auction for various automotive products, heavy equipment, and gadgets. IBID holds auction routinely every week with a total frequency of up to 50 times a month. IBID auction network has spread to 30 big cities in Indonesia. Please click this link for further information about IBID.