Now you can buy used cars of various types, including repo cars, at an auction.
Auction houses typically offer hundreds of vehicles during each auction, some of which are from leasing companies.
Repo cars are vehicles that leasing companies have reacquired from buyers who have defaulted on their loan payments.
When a debtor fails to pay the car installment, the leasing company will reacquire the car bought. Such a car will then be resold at an auction house.
To ensure you get a quality repo car, buy one from a reliable auction house. That aside, it is legal to buy repo cars.
That said, to ensure your purchase is trouble-free, do it at a professional and trusted auction house such as Balai Lelang Serasi (IBID).
In addition, you need to remain vigilant, and you can try to do the following before buying a repo car:
Before buying a repo car, make sure the documentation is complete. This is mandatory since the car might have been reacquired by the leasing company while in use, so it does not have complete documentation.
Check that the car has a registration certificate (STNK), Title and Registration Papers (BPKB), an invoice, and a Car Ownership Transfer Letter or Letter of Vehicle Transfer.
A Car Ownership Transfer Letter is a document or a letter issued by the place conducting the auction or sales of a repo car on behalf of the leasing company. Later, you need this document to transfer the title of the car.
Another thing to do when buying a repo car is to ensure that all of its financial administration processes are properly settled.
This way, you will not be contacted by the leasing company in the event of issues with the repo car bought.
Such issues may arise when you buy a repo car sold by a duplicitous leasing company. Thus, be sure to only buy a repo car from a professional auction house as it will help ensure the issuance of the debt settlement agreement.
Next, check the repo car’s physical condition. This is a mandatory process when buying a used car, particularly a repo car from an auction house. The process will save you tons of trouble in the future.
When it comes to trusted auction houses in Indonesia, among which is PT Balai Lelang Serasi, which has been conducting auctions under the brand name IBID. Established in 2007, the official auction house of PT Serasi Autoraya is trustworthy and offers you greater ease because you can join an online, live auction right from the IBID app, available on the Play Store and the App Store.
By the end of 2016, the Astra Group’s company has sold more than 27,000 four-wheeled vehicles in its auctions, and every year it successfully runs more than 500 auction events.
IBID hosts weekly auctions at its ten branch offices across Indonesia. So far, over 30 cities in Indonesia have become where IBID’s auctions are held.
A Live Auction is a real-time auction where each lot is auctioned off live one at a time on a given auction schedule. When the lot is being put up for auction, participants can put in their highest bid, and the auction ends when no higher bid is placed for it.
When that happens, the highest bidder wins the auction. The auction then continues for subsequent items. It is different from a Timed Auction and Flash Auction.
At a Timed and Flash Auction, all lots are put up all together on a single schedule. Here they differ: Flash Auctions take place for only an hour, while Timed Auctions can last for hours, even days.
For example, at this week’s Timed Auction, ten used cars are auctioned from 12:00 p.m. to 5:00 p.m. Western Indonesian Time (WIB). All the cars will be displayed together for that auction. The highest bidders, who will bring home the used cars, will be announced when the auction concludes.
Flash Auctions have an advantage over the other kinds of auctions. They have a collection of fresh-from-the-oven used cars because the cars recently inspected by the Astra Car Valuation (ACV) experts will typically be auctioned off here first.
For sellers or consignors, this type of auction helps sell their cars faster, while for bidders, it helps them find a fresh collection of used cars to bid on. As for Timed Auctions, they are scheduled like Live Auctions.
Where Flash Auction wins are the live stream and the live chat features it provides for the participants. Each bidder with an NPL can use the live chat feature to ask the vehicle inspection team up to 10 questions to get more details about the condition of the displayed used car.
Thanks to the live stream, the vehicle inspection team can show the exact part of the used car by pointing the camera at it in response to a participant’s question.
Flash Auctions are designed to present convenience to an online auction event. From the comfort of their home, participants can see the cars auctioned via the live stream in detail, eliminating the concern over flaws found only after a car reaches the buyer’s hands because its condition has been documented thoroughly beforehand.