UAE: Are You Planning To Purchase A Car At An Auction?

(MENAFN- Khaleej Times)

Have you ever thought about buying a car at an auction here in the UAE? Many motorists are attracted by the chance to pick up a bargain vehicle that is being sold off quickly and cheaply.

But there are a few things you need to bear in mind before you go down this route. The main car auction portal is Emirates Auctions, which sells hundreds of cars each week online. There are others such as Copart and Abu Dhabi-based Al Wataneya. SellAnyCar also works like an auction, setting a minimum price and allowing people to bid for cars.

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The first thing to consider is the reason why the car is being sold in an auction in the first place. Cars sold at auctions have normally been damaged in an accident or have been reposssesed. While auctions are held online, you are allowed to go and inspect cars, with the exception of those repossesed by the courts. This allows you to see the condition of the car up close. But then again, you need to know what you are looking for.

Warning signs?

There are some visual clues for the trained eye that a car has been damaged in an accident, fixed and then resprayed. One check is on the paint thickness. It's hard to replicate the same effect as the original paintwork, so look out for areas where the paint is thicker. There are paint thickness testers you can buy relatively cheaply to help you.

“In the UAE, people prefer cars with the original paint and will pay a premium for this,” said Colin Thomas, the founder of home maintenance company We Will Fix It and a car enthusiast who has previously bought cars at auctions.“You have to really know what you are looking at. Otherwise, you will get caught out.” Cars that have been in accidents may have been repaired but the question is how good are the repairs, and are they hiding more serious damage?

For repossessed or abandoned cars, If someone has gotten into debt and fled the country there's a good chance they couldn't afford to have the car serviced regularly.“There may also not be any keys for the car either. Getting a replacement key is a lot harder than you think,” Thomas adds.

Expert tips

Always read the small print. Cars sold“AS IS” are sold in their current condition (with all faults) from their current location. There will not be any guarantee or warranty for vehicles under this category.“Any information provided by the seller or Emirates Auction regarding the vehicle is for the buyer's convenience only. It is the buyer's sole responsibility to confirm, research, inspect, and investigate the vehicle before bidding,” it states on its app.

Follow the cardinal rule - set a budget and stick to it. It's easy to get frustrated if you get outbid but stick to your budget, always. Also be aware of the other costs on top of your winning bid. These often include admin fees, loading, plus document issue or court fees where relevant. These could easily set you back Dh2,500, says Thomas.

Don't bid in round numbers. For example, if you bid Dh50,000, you can easily be outbid by someone who has strategically bid just over Dh50,000 (say Dh50,100). But if you put in a bid for Dh50,200 you lower your chances of being outbid.

Dubai resident and media specialist Omnia Al Desoukie tried Emirates Auction, attracted by its huge selection of cars. However, she was discouraged by the down payment required. For Emirates Auctions you need to give a security deposit of 20 per cent of your bidding limit. So if you wish to have a purchasing limit of Dh50,000, your security deposit needs to be Dh10,000.

“I tried Emirates Auction and found cool cars but then I couldn't proceed because the app was overwhelming. I went to a physical auction elsewhere but the prices were really high. I felt that buying off Dubbizle would be easier,” she said.

Also be aware that auction timeframes can be extended when a last-minute bid is placed, to provide an opportunity for the remaining bidders to place their bids. And remember, you only get the car in the auction, not the number plate.

Supercars

If you think you can pick up a Lamborghini at an auction for a few thousand dirhams, think again. Supercars tend to attract a lot of attention and often lead to bidding wars. Dealers also like a supercar as a 'trophy car' outside their showroom to attract customers.“The supercar may have a major mechanical issue which will be expensive to fix, and the cost of spare parts for them are very high,” warns Thomas.

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