Beware of Scams at Auction! Here’s How You Can Avoid Them

The increasing popularity of auctions certainly attracts many people to take advantage in a wrong way, such as committing fraud related to auctions. Online auction scams are still common in the community.

People as buyers easily believe in sites or social media that offer auctions. Moreover, buyers who are new to the auction system will be easily seduced by these tricksters. 

Therefore, you must remain vigilant in order to avoid car auction scams. There are some tips that might come handy for you:

Identify the account that shares auction information

If you are interested in participating in the auction, you should first identify the source of the auction, either on behalf of individuals or institutions. It is best to choose a trusted auction hall, such as the IBID Serasi Auction Hall. 

IBID is a trusted auction house because it is a business unit of PT. Serasi Autoraya, a member of Astra Group. Usually, the company that offers the auction provides very detailed information including condition of the vehicle, auction schedule, terms of the auction, and so on in a transparent manner. 

Complete information on the auctioned items 

If you intend to participate in the auction, you should have full knowledge on the condition of the car. Technically, the auctioned items are the responsibility of the Seller (the party authorized to sell items by auction) and each prospective auction buyer has the right to see the items to be auctioned at the time that has been informed in the Auction Announcement. 

Therefore, the easiest way to get auction information is to read the auction announcement in full. It contains the identity of the seller, the items to be sold at auction, place and time of the auction and other necessary information.

If you are still in doubt about the item, you have the right to see the condition of the item directly by first coordinating with the seller. Also, pay attention to the legality of the items so as to minimize potential for post-auction disputes/conflicts. 

Cheap price is not always good 

This condition occurs most often among auction participants because it is inevitable that very low prices are still very tempting. In reality, auction prices are not always cheap; it is more adjusted to the existing market conditions.

The economic law applies: when demand increases, prices will also rise. If someone offers an auction item at a very cheap price and far from the market price, it is very worthy of suspicion. 

Look for information on the price of your target car in the market and make it a benchmark when making an offer. That way, you will not buy an auction car at a price that is more expensive than the market price. 

Pay attention to the receiving bank account before transferring money

One auction scam mode that is easily identified is the use of an individual name account. Based on the provisions, the auction requires participants to use an account in the name of an institution/agency. 

Usually, auctions also only require transferring funds as security deposits, and settlement is made after the participant has won the auction. So, if someone asks to make a payment transfer before the auction takes place, you have to be careful because it is most likely a scam. 

Understand the auction procedure

Finally, it is very important for bidders to understand the auction procedure, which usually can be found on the internet. If the auction company is trusted, the auction procedures and requirements are listed on their official website, as IBID Serasi Auction Hall does.

If you need more information on car auction, go look for it at the IBID auction hall. As a member of Astra Group, you can participate in an auction at IBID auction hall from anywhere with Live Auction and Timed Auction. Come join the car auction at IBID now! Visit www.ibid.astra.co.id.