Significant Benefits of Buying Cars in Auction House

Jakarta – Auction is currently a new option for people in buying cars. Affordable prices and good quality of products are the main factors behind increasing interest in auction house. The prices can be 20% lower than market prices.

For example, Toyota Calya G MT 2018. The price of the car on IBID auction house’s website is Rp105 million. The figure is 8% lower than the market price of a used unit of Rp116 million. Compared to the price of a new unit at Rp144 million, the price in the auction house is cheaper by 28%.

Honda Mobilio RS 2014, with market price around Rp139 million to Rp160 million, is priced Rp127.5 million in IBID auction house. This means that customers can save by 9% to 20% if they purchase the car through an auction.

IBID President Director Daddy Doxa Manurung said that in terms of price, auctioned cars have cheaper prices. He even said that auction feels like a market. “There are many choices, from various brands and types, at various conditions, so we can choose based on our budget,” he said. (Detik.com, October 26, 2017)

To join an auction, people can visit an auction house or do it online. Auction houses have varying availability of cars. Therefore, choose the auction house that has the car you want. After making your choice, the next step is to ensure that the car is in a good condition during the open house.

Afterwards, you can check the auction schedule of the auction house you choose. Unlike a showroom, an auction house does not conduct sales every day. “They determine the date and time of the vehicle’s auction,” Otospector.co.id wrote.

Next, you must make deposit as a guarantee. If you win, the price of the car will be deducted according to the deposit. If you lose, then the money will be returned to you. Don’t forget to register by showing your identity card and receipt of deposit transfer before you buy a used car in an auction house.

The auction process will be guided by an auctioneer. If you are made the winner of the auction, the next process will be the payment. An auction house usually sets a period of time for payment. You can pay the car in cash or by transfer according to the auction house’s rule.

Currently, most auction houses are still using cash payment system. However, according to Daddy, his auction house has partnered with several financing firms. “Later on, people can buy with loan,” he said (Kompas.com, March 21, 2018).

According to Daddy, there is still no leasing company that wants to help finance auction customers. Payment process of auction and loan are different, which makes it difficult to partner with financing firm.

Daddy added that at the moment, full payment must be made five days after the auction, while loan payment needs one to two weeks. “If the application is rejected, who wants to pay the deposit of the auction winner?" he said.

Before the auction, a participant is required to make a deposit of Rp5 million per unit for cars. If the participant does not win, the money will be returned, but if the participant wins, then the price of the car will be deducted.

Established in 2007, IBID is a subsidiary of PT Serasi Auto Raya under Astra Group. Anyone can participate in an 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. To find more detailed information about IBID, check here.