There are many ways to sell cars. Mostly, people choose to advertise on trading sites or going to used car showrooms. However, there is actually another way, which is by consigning the car to an auction house.
Auction consignment is a service that can be used by an asset owner to consign their vehicle to be auctioned. Not only consignment, this service also covers inspection and proceeding until the asset is sold through an auction.
When consigning, asset owner usually will be charged more than the vehicle’s selling price. However, on the other hand, they will also get benefits. “The car has a chance to be sold faster than if it is sold to another person or showroom,” as cited from Kompas.com, Thursday (July 12, 2018).
Moreover, the selling price may relatively be higher than if the car is sold or bought by used car dealership. Security is also guaranteed because the auction house will ensure the backgrounds of auction participants. The auction frequency is higher too, so the probability of the car getting sold is bigger.
To consign a vehicle, the asset owner will not go through too much trouble. They only need to contact marketing division who will explain the procedure clearly. Then, the asset owner will be asked to hand over several official documents.
The procedure does not have to be conducted offline by visiting the showroom or auction house. Thanks to technological development, online consignment has started to mushroom and is predicted to be a trend in the future. “Time-wise, it is quicker, and buyer can get a price that suits the item’s condition,” as cited from Kompas.com, Thursday (July 12, 2018).
Online auction makes distance and time no longer a problem because it can be conducted through multiple devices anywhere. Several auction houses even offer auctions not only through websites but also Android apps, as done by Balai Lelang Serasi IBID.
To consign, the first thing that an asset owner must do is filling in personal data and detailed information about the vehicle that is to be consigned online. Then, choose the schedule and location of the closest IBID pool for inspection of the vehicle that will be auctioned.
Next, asset owner only needs to bring the vehicle as scheduled to the chosen location. Inspection of the vehicle only needs approximately 45 minutes. There is no need to wait for long, as the inspection result and price recommendation will come out right after.
In accordance with the principle of transparency, all the transaction stages of auction consignment in IBID can be monitored through “transaction” menu on IBID’s website. In IBID, the money will be received by consignor seven working days after the lot is successfully sold in auction.
If the lot is not sold, consignor can get it back one day after the auction. The consignor will be charged a fee for the management of the vehicle while it is in the location, which is Rp250,000 per vehicle. If the vehicle is not taken back one day after the auction, the consigner will be charged further with a parking fee, which is Rp100,000/vehicle/day, and all damages and losses will be the consignor’s responsibility.
If the vehicle that is supposed to be sold is not paid by the auction winner by the determined time, consignor will get a compensation, which is 50% of the auction participant number purchase fee paid by the auction winner.
Auction does not only benefit consignors but also those who are looking for used cars with affordable prices and good quality. Balai Lelang IBID Chief Operation Officer Daddy Doxa Manurung said, as cited from Liputan6.com, (April 6, 2018), that sometimes people consign vehicles to auction houses because they need to pay loan or because they are companies that do not have the time to sell the cars one by one.
IBID routinely holds auctions every week in more than 10 large cities, and currently, it has
held auctions in more than 30 cities in Indonesia. As of the end of 2016, around 27,000 four-
wheel vehicles had been sold through more than 500 auctions every year.
Established in 2007, IBID makes the effort to conduct digital transformation. Anyone — both
companies and individuals — can join auctions, either to buy in bulk or in unit, offline or