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(9 December 2009) Standard Bank will try to auction off repossessed cars on the South African online marketplace and auction site bidorbuy.co.za.
In the trial run, two cars will be put on auction, a 2007 Ford Focus 1.6 and a 2006 VW Caddy Panel Van. The starting bid for the 2007 Ford is R77,000, well below its market price of R115,200. The bidding for the 2006 VW van will start at R60,000.
The two auctions opened on 9 December at 5 P. M. and will close on 11 December at 3 P.M. There is no reserve, which means that the cars must go to the highest bidders.
If the experiment is successful, it is expected that Standard Bank will auction their repossessed cars on bidorbuy regularly.
“This is an indication of maturity of the South African ecommerce industry, as well as an expression of confidence in bidorbuy.co.za”, says bidorbuy Managing Director Andy Higgins and adds that there have been several used cars auctioned on bidorbuy in the past by private sellers or small dealers.
“The main advantage in using bidorbuy for sellers is the reach of the site”, says Higgins. “We have over 400,000 registered users and more than one million visitors every month. Each and every one of them is a potential customer.”
According to Higgins, the highest bids achieved for the used cars auctioned on bidorbuy in the past were typically 20 to 30 percent below the market price. The fact that a bank appears as a seller has advantages that go beyond the potentially very attractive price: it will be easy to arrange financing. Bidders are advised to obtain a credit line before bidding.