The trend of buying used cars via auction halls is increasing during the pandemic. The same goes for the trend of selling used cars via the consignment method. The government has even conducted its own auction of state-impounded cars. So what are the differences between private auction halls and state-owned auction halls?
The first difference is the origin of the auctioned cars. Cars auctioned at state-owned auction halls are cars impounded due to certain issues, such as corruption or smuggling.
On the other hand, cars or vehicles auctioned at private auction halls come from various sources. At IBID, vehicles auctioned are usually used cars from companies, cars from debtors that cannot pay their debt, and cars confiscated by financing companies.
The next difference is the quality of the auctioned items. In state-owned auction halls, the condition of the auctioned items will be left as is. Meanwhile, at the IBID auction hall, the quality of the auctioned cars is divided into grades (A, B, C). The condition of the cars, exterior, interior, and engine are assessed to find out the grade of a particular car.
In addition, private auction halls have an abundance of units available, meaning that their selling price will not differ too much from the base price that has been set. For example, there are numerous available units of Toyota Avanza. Thus, its selling price will be close to its base price. If the basic price is Rp80 million, then the unit can be sold at around Rp90 million.
Conversely, in state-owned auction halls, the units available are limited in numbers. Thus, the selling price of the units can be significantly different from their base price.
The procedure for participating in an auction is more or less the same in both types of auction halls. In the beginning, participants must register and make a deposit for the cars they want before making a bid during the auction.
If a transaction does not occur or if the participant does not win the auction, then the deposit will be fully returned. However, if the participant wins an auction, then the total selling price will be subtracted by the deposit.
A good auction house must have an open house like the one at IBID, as consumers can freely check the condition of the car they want. Therefore, they won’t feel like buying a pig in a poke.