Buying a Car at a Government or Private Auction, Which is More Profitable? Here’s the Answer

Which is More Profitable, Participating in a Private or Government Car Auction?

There are various ways to buy a quality used car, apart from buying from showrooms. One of them is to buy from an auction.

Car auctions have become increasingly a popular choice thanks to the more benefits they offer. In addition to the prices being cheaper than those set by the showroom, the validity of the cars sold at an auction is also clearer.

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From the Vehicle Registration Certificate (STNK), the Title and Registration Paper (BPKB), to the release letter from the company for the auction car, everything is more guaranteed and clear. The authenticity and validity of all these documents are important, as it is not uncommon that used cars for sale have problematic documentation.

Currently, car auctions are often organized, both by the government and by private institutions. Auctions organized by both institutions are essentially the same, with the sales being based on a certain price range to auction participants and the winners being decided by the highest bid price.

Difference between Private and Government Car Auctions

However, there are several differences between the two. First, the cars auctioned by government institutions or agencies are usually confiscated cars or old cars that will be replaced by new ones in a fleet revitalization program.

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On the other hand, the cars auctioned by private institutions generally come from various sources, such as ex company cars, used cars voluntarily sold at auction halls, and cars towed by financing companies.

Another difference is the classification of the auctioned goods. In an auction hosted by a private institution, a specific classification is made for each item being auctioned.

On the other hand, there is no classification system in auctions held by the government, where the cars are auctioned “as is”. This means that in a private auction, a grade categorization of A, B, and C is put in place, which is not the case with government auctions.

The stock or the number of units being auctioned is also different. Due to the limited car origins, the number of cars auctioned by government institutions is more limited, which is the opposite of private auctions.

The limited number of car units being auctioned greatly affects the price bid by the participants. The surge in bid prices in a government auction is higher.

See also: The Must-Know Reason Why Used Car Prices at Auction Houses Can Be Cheaper

However, if you want a certainty and convenience when participating in a private auction, it is highly recommended to check the organizing institution. It is very important to ensure its credibility and track record, so that you can get a car with guaranteed quality at a worthy price.

Why IBID?

To this day, IBID is undeniably still one of the trusted private auction organizers with excellent credibility. Not surprisingly, the company that was founded in 2007 is a subsidiary of PT Serasi AutoRaya (SERA), which is an Astra Group company.

IBID auctions are also open to anyone, both individuals and companies. IBID does not even limit the participants both in large-scale purchases and in individual purchases.

IBID organizes auctions on a weekly basis in its 10 office branches across Indonesia. In addition, IBID has also held auctions in more than 30 cities in Indonesia, successfully selling tens of thousands of car units.

IBID has even become a sales solution for company partners that seeks to sell their vehicle assets. Not only companies, individual persons can also entrust their vehicles to be sold through IBID’s auctions.

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Interestingly, today all processes of auctioning and bidding can be conducted online. IBID offers a wide range of auction features, such as Timed Auction, Live Auction, and Flash Auction.

Timed Auction is a type of long-term auction. Within a certain period, participants can get attractive offers from several types of units at once. These units will remain in display if they have not been auctioned off, so that participants can first contemplate their auction decision.

Live Auction is a type of real-time auction that involves the interaction between the two parties. Through the IBID app, participants can follow a live auction online without physically attending it. This is the right solution for those who are unable to be personally present on-site.

Last, Flash Auction is a fast auction where IBID gives exclusive offers to the winning participants. However, the auction period tends to be short, so the bids have to be made fast. A flash auction is also equipped with live stream and chat features for you to check on the status of the auctioned unit.

With these features, IBID is undoubtedly the right place for auction that offers various benefits. Also, it is guaranteed that all transactions are secure.