The financial institution has noted a resurgence in the number of scams targeting online auction vehicle purchases.
With the increasing popularity of online auction platforms, the combination of hard-to-replicate deals and a customer’s inherent eagerness to get behind the wheel of a dream car has opened the door for unscrupulous scamming syndicates to set sophisticated traps for unsuspecting users.
Targeted via legitimate-looking branded posts placed on otherwise popular second-hand market sites, including Facebook Marketplace and, more recently, social media platform TikTok, users showing interest in an advertised vehicle ahead of a forthcoming auction are contacted and encouraged to place a deposit to “secure” the purchase before it goes under the hammer. The promise is that this vehicle will then be pulled from the auction and, with payment of the balance, secured.
“The first thing to note is that no bank will sell a repossessed vehicle outside of an auction process,” says Jacques van der Linde, Managing Director at Aucor Bloemfontein. “The process must at all times be deemed free, fair and transparent.” Anyone claiming to be able to influence this by securing a vehicle ahead of its allocated auction slot – thus bypassing legal FICA requirements – should be treated with suspicion.
Lebo Gaoaketse, Head of Marketing and Communication at WesBank, emphasises the importance of dealing with trusted sources: "Always ensure that you are dealing with a registered auction house, and in the case of a bank auction, an official bank representative. Do not be enticed into accepting unofficial offers. It is often a ploy to defraud those looking for a good deal. Trust your instincts and proceed with caution. It's better to err on the side of caution than to fall victim to a fraud scheme.”
Modern scamming syndicates are notorious for appearing extremely professional and thus legitimate. They can even go so far as to have a pseudo-finance department get involved to expedite payment. Unfortunately, once a transaction has been cleared, it becomes nearly impossible to trace; these funds are subsequently syphoned through myriad similar front accounts.
“At Aucor, vehicles are open for inspection for up to two days ahead of an auction slot. Should this not be the case or excuses be made as to why a vehicle cannot be viewed, it’s advisable not to part with any money – no matter how enticing the deal is,” continues van der Linde.
“We urge participants to report any suspicious activity promptly to the auction platform to prevent others from falling prey to scams and contribute to a safer online marketplace. By taking note of these guidelines and exercising caution, buyers can confidently navigate vehicle auctions, maximising their chances of securing a quality vehicle at a reasonable price,” Gaoaketse concludes.
Highly sophisticated and always transparent, the modern online auction process has evolved to offer consumers all the prospective value and bargain-hunting prowess of a traditional auction floor from the comfort and convenience of a desktop or smartphone. As the largest auction house in southern Africa, Aucor’s online platforms live.aucor.com and the AucorLive App are designed to allow registered users a front-row seat to watch the action with the opportunity to place considered bids towards a prospective purchase.
At any time, Aucor’s helpline number, 063 934 9301, is available to ease any potential concerns or queries relating to the online auction process.
Ian McLaren has more than 25 years of experience as a motoring journalist. Here, he will be compiling a series of articles documenting his learning curve when it comes to all things auction. Find him on Twitter, Instagram and TikTok at @IanMcLaren76.
These articles aim to offer insights only and in no way encourage reckless or hit-and-miss purchasing decisions.