Finding bakkie bargains at repo dealers is not too difficult. You simply have to look at a variety of different dealerships and keep up to date with the vehicles they have coming in.
There may be several months where there are no bargains but there will be a great deal before long if you keep looking and don’t give up.
It is important, however, that you make sure that the vehicle you are thinking of buying is actually a bargain and does not have some hidden flaws or faults.
Make sure you do a thorough inspection and make sure that you purchase the vehicle through a reputable seller.
What is a repossessed bakkie?
When the average individual purchases a vehicle, they will usually have to find financing from a financial service provider (usually the bank) in order to pay for it.
If a financial service provider approves their vehicle loan, the individual will have to sign an agreement that states that they will pay a certain amount of money every month to pay the loan back and to pay the interest on it.
Because life and finances in particular are unpredictable, many people find themselves in sticky situations with their debt because of unexpected, unavoidable payments, the loss of a job or something similar. When this happens, the individual will not be able to afford to make their loan repayments with interest.
After several missed payments, the financial service provider will issue a warning to the individual. If the individual still does not make their payments, the financial service provider may repossess the vehicle.
The financial service provider will then keep the car for a holding period, giving the individual a last chance to pay back what they owe. If the individual cannot make the payment, the financial service provider will then sell the vehicle on, usually through an auction, in order to get some of their money back.
What are the advantages and disadvantages of buying a repossessed vehicle?
There are several advantages and disadvantages to buying a repossessed vehicle.
The positives include the fact that the financial service providers who repossess the vehicles often want to get rid of the vehicles as quickly as possible. Because they want the vehicles to move quickly they will often sell them at below what they are worth in order to get rid of them.
Also, the vehicles are often quite new with lower mileages than most second hand cars. They are also less likely to have problems or faults and will often still have their service plans or warrantees intact, saving the new owner a lot of time and money.
Most repossessed bakkies are sold at auctions meaning the potential buyers can decide what they are willing to pay for the vehicle rather than the owner or dealer setting an extortionate price.
However, the disadvantages of buying a repossessed vehicle include the fact that many of the vehicles are sold ‘as is’.
This means that if there are any faults or flaws that you only discover after the sale, they will be your problem to take care of.
It is therefore important that you thoroughly inspect any vehicle before you put any money down or sign anything. If you are not a motor expert, take a friend or family member with you to help you conduct a thorough inspection.
Ask to view the papers of the vehicle and check up on the VIN number to make sure that the vehicle is not stolen property.
Where to find bakkie bargains at repo dealers
The best place to find repossessed bakkies is through the auctioneers that sell them.
Contact the South African Institute of Auctioneers (SAIA) to find out where and when your local auctions will be held. You can also contact any of the financial service providers that repossess and sell vehicles on.
These financial service providers include Standard Bank, First National Bank, Nedbank and ABSA.