Why auctions are booming – and how not to get burned

From homes to hatchbacks, auctions have exploded in popularity — and not just among seasoned dealers. “People have become a lot more educated in terms of purchasing on auction,” says Graham van Niekerk from Park Village Auctions. Speaking on HOT Business with Jeremy Maggs, powered by Standard Bank, he says the public seem to be a lot more open to purchase on auction these days.

Rising interest rates, economic pressure, and the convenience of online bidding — accelerated by COVID — have doubled attendance in recent years. Van Niekerk points out that online platforms now let buyers “purchase from different provinces… not necessarily only where the goods are located.”

Why the hype?
Bargains are the main draw. Repossessed vehicles can sell “below trade value… depending again on the condition,” van Niekerk explains, while properties often go for less than market price. But excitement can turn into “expensive regret” if you’re not prepared.

A man in a checkered shirt and a woman in a pink shirt, embodying Gen Z energy, sit on a couch looking at a phone. He points at the screen while she smiles excitedly, hands raised in surprise—capturing the spirit of the hustle.

Golden rules for rookies

Do your homework: “Most assets are sold ‘as is’ and with no duty to repair.” Inspect before bidding.
Set your budget: “Peg yourself a figure, and stick to that.”
Beware scams: “If you are denied access to view… or asked for money before purchase, you can almost guarantee you are being scammed.”
No cooling-off period: Once the hammer falls, the deal is done.

Auctions can be a fast track to a great deal — but as van Niekerk says, “If you’ve done your homework… you should be able to buy something reasonable on auction.”

Listen to the full interview from HOT Business with Jeremy Maggs, below: