Let’s Learn More about Auction

When people want to buy vehicles as assets, many of them still choose to buy directly from a car dealer. Whereas, there is an alternative way called auction that can give many benefits such as competitive prices.

Auction is indeed an unfamiliar term for Indonesian people. Auction is often associated with big projects by the government or companies. Not many people know that there is a kind of auction that the public can participate in.

An open auction is commonly run by an auction house and led by an auctioneer. The mechanism is that each bidder competes to make bid with the prices going higher gradually. The highest bidder will win the auction.

In an auction, the auction house is only an official organizer of the auction which helps individuals or institutions to sell their assets (known as "lot"). 

This means that the lot is not owned by auction house, but by individual or institution (known as "consignor") who consigns their assets to the auction house for auction.

This lot is what people can buy through auction. Interestingly, buyers can buy vehicles at auction in unit or in bulk.

However, it should be noted that there are various choices of vehicles in various conditions. The vehicle condition will determine the starting price. This information then can be used by buyers to set their budget. 

Moreover, buying through auction also needs thoroughness. Because the vehicles are in various conditions, buyers must really understand the ins-and-outs of vehicles.

Auction house usually holds an open house so that prospective buyers can directly inspect their desired items. Prospective buyers are allowed to bring friends who understand machines or even hire the service of mechanics to inspect the vehicles.

The auction house itself usually already provides information regarding the condition of the vehicles that will be auctioned. This is also why prospective buyers must choose auction houses with high credibility.

For example, IBID-Balai Lelang Serasi. This subsidiaryof PT Serasi Autoraya has utilized technology that can assess the condition of the vehicles transparently, accurately, and comprehensively. 

The grading itself is from A to E. For instance, grade A and B mean that the cars only need minimal repair. 

Aside from these conveniences, the rules are also clear. Those who are interested in participating in the car auction only need to register as participants. With a fee of Rp5 million, participant will get Auction Participant Number (NPL) to bid for one car. 

The fee will be returned 100% if the buyer does not win the auction. However, if a buyer wins, s/he only needs to pay the remaining price. For example, the price of the car is Rp100 million, then the buyer only needs to transfer Rp95 million.