Step right up for online auctions

Online truck auctions are gaining in popularity, but how can buyers steer clear of potential pitfalls and unscrupulous practices?

With technological advances and trustworthy turnkey service providers, it is now easier than ever to verify the quality of a used truck without seeing it “in the metal” prior to purchase.

The first port of call for any potential buyer is to ensure they are interacting with a reliable platform. According to SA Auction Group, which was one of South Africa’s first online bidding platforms, buyers should check that the auction house is a registered member of the South African Institute of Auctioneers (SAIA).

SAIA has a members’ code of conduct, ensuring that auction houses meet ethical standards and comply with the Consumer Protection Act. Customers attending the auction can rest assured that the bidding process will be fair, transparent, and regulated – minimising any purchase risks and ensuring a more secure and well-documented transaction.

SA Auction Group advises potential buyers that even if an auction house is an SAIA member, they should still do their due diligence. “Before registering for a truck auction in South Africa, potential attendees will first want to do some research on the auctioneer hosting the auction. An important characteristic that is often looked for is whether the auction house has a successful track record,” it expands. “This can be seen by the number of years the auction house has been operating, as well as from customer reviews.”

Buyers should also investigate the quality level of the vehicles on offer, says the group, by viewing the auction house catalogue or, if feasible, “physically viewing the assets in the yard”.

If a physical visit is not possible, however, there are other steps that can be taken to set one’s mind at ease. TrucksOnline (part of the DealersOnline group) markets itself as “a digital partner to help you acquire better data, understand the market and gather insights to inform your decision-making wherever you are in your journey”. On top of physical inspection capabilities and facilities, the platform uses a suite of heavy commercial vehicle-focused technology products to offer online valuations and disposal channels through its online auction marketplace.

Over the last six years, TrucksOnline has been heavily involved in the digitisation of inspection and pricing functions for global commercial vehicle manufacturers, including facilitating their lease termination and trade-in functions.

“With rich, aggregated datasets, we have key sources of market intelligence for our clients, enabling them to integrate our insights into their strategic decision making processes,” it says. The platform also handles the inspection and listing process for sellers to increase the chances of securing a sale.

These types of turnkey solutions are likely to become increasingly popular, as the used truck market continues to expand and online purchases in general become more widespread. According to leading consulting, data analytics, and market research firm MarkNtel Advisors, the used truck market in Africa is projected to grow at a compound annual growth rate of about 5.6% between 2022 and 2027. South Africa is central to this growth, with the largest share in the continental market; this is expected to continue during the forecast period.

As more and more vehicles enter the market, it in turn fuels growth in the used market. With the number of accredited auction houses available, it is certainly a route worth investigating for those looking to bolster their fleet or get a one-truck operation off the ground… but make sure to do your homework!