Auction is now considered as one of the ways to buy high-quality used cars. People usually take this method to get vehicles with cheaper price but better engine condition than used cars.
Balai Lelang Serasi IBIDreported that low multi-purpose vehicle (LMPV)cars are still the favorites in the auction house. This is seen from the sales of Toyota Avanza dan Xenia that do not take a lot of time in every auction.
“They can get sold in one auction. The most difficult type to sell is sedan; the market does not seem to be interested. It takes two to three auctions before a sedan will be sold,” IBID-Balai Lelang Serasi President Director Daddy Doxa Manurung said, as cited from Kompas.com(January 10, 2019).
This condition is also reported by other auction houses. “Like in the new-car market, LMPV model is at the top position.In 2018, the most popular LMPVs are Toyota Avanza and Daihatsu Xenia and their successors,” as written on Kompas.com.
From the total sales of 16,924 used cars in 2018, Xenia ranked first in used-car search. Avanza contributed 30% to the total sales last year, while Xenia sat on the second position with sales of 1,596 units.
Small cars or low-cost green cars (LCGC) have started to gain attention in auction houses. The presence of latest car models also enlivens used-car auction houses.
Indonesian consumers, as cited from Liputan6.com (July 12, 2018), who participate in auctions, tend to prefer vehicles with prices around Rp100 million.
Generally, the sales of used cars through auctions grow though rather insignificantly. Throughout 2018, Daddy mentioned that 16,924 used cars and 9,512 used motorcycles had been sold through auctions. This figure is 34% higher than 11,055 used cars and 2,017 used motorcycles sold in 2017.
The growth of sales through auctions proves the growth of people’s trust level and knowledge regarding automotive auction.
Meanwhile, in IBID, by the end of 2018, around 24,000 cars had been sold. This figure is increased by around 4,000 since 2017. Even though the growth is small, Daddy was optimistic that the industry can still grow.
According to Daddy, the challenge they faced last year was the many discounts on new cars. Thus, used cars have only slight difference in terms of price with new cars.
On the other hand, there aren’t many people with the habit of buying used cars through auctions. This has become a challenge for auction organizers to make auctions more widely known.
“Moreover, there is also the growth of automotive auction houses. This is the challenge in the future. This year, the introduction of auction houses can be expanded to the provinces. So far, auctions are mostly held in Jakarta. We target 15% growth in 2019,” Daddy said.
Established in 2007, IBID is a subsidiary of PTSerasi Auto Raya under Astra Group. Anyone can participate in auction, either companies or individuals, to buy either in bulk or in units.
IBID routinely holds auctions every week in more than 10 big cities and has a network in more than 30 cities in Indonesia. By the end of 2016, around 27,000 four-wheeled vehicles had been sold through more than 500 auctions every year.