Definitions
AuctionHub
A free website that provides a comprehensive listings of upcoming car auctions across South Africa, along with detailed stock availability.
Auction Finance
An AuctionHub partner with over 20 years experience in the auction market providing finance (as well as personal loans) for buyers of auction cars/assets.
To arrange car finance and get a FREE auction buying consultation - Contact 079 452 2523.
Auction
A public or private sale where goods, including (e.g cars) are sold to the highest bidder.
Auctioneer
A licensed professional responsible for conducting an auction, calling out bids, and ensuring the sale process follows legal and ethical guidelines. In South Africa, auctioneers must comply with industry regulations set by bodies such as the SAIA (South African Institute of Auctioneers). Same as Auction House.
Auction House
A company or entity that organises and facilitates auctions, providing a platform for sellers to list their goods and for buyers to place bids. Same as Auctioneer.
p.s. typically the terms Auctioneer/Auction House can be use interchangeably.
VIN Number
A unique 17-character code assigned to a vehicle, used to identify its make, model, year, and origin. In South Africa, the VIN is essential for vehicle registration, roadworthiness certification, and tracking a car's history.
Bid
An offer made by a buyer to purchase an auctioned item at a specified price. Bids can be placed in person, online, or via a proxy, depending on the auction format.
Bid price
The amount offered by a bidder for an item during an auction. This price may increase as competing bidders place higher offers.
Reserve Not Met
Means the highest bid received is below the minimum price the seller/auctioneer/bank is willing to accept (the reserve price), and therefore the item won't be sold.
Lot No.
A unique identification number assigned to an item or group of items in an auction. In South Africa, auction catalogs list lot numbers for easy reference.
Voetstoots
A legal term meaning "as is," indicating that an item, usually a vehicle or property, is sold without warranties or guarantees. Buyers accept all defects and faults, known or unknown, at the time of purchase.
Runner
A vehicle that is in working condition and can be driven off the auction premises. Runners typically fetch higher prices than non-runners.
Non-runner
A vehicle that is not in working condition and requires repairs or towing after purchase. Non-runners are often sold at lower prices and may be bought for spare parts or restoration.
Viewing date(s)
The scheduled days when potential buyers can physically inspect auction items before bidding. Most South African auction houses allow viewings a day or two before the auction to assess the condition of goods, especially vehicles.
Auction date(s)
The specific day(s) when the auction takes place. South African auction houses announce these dates in advance. These can either be online or onsite/live or both.
Online auction
A digital auction where bidders place their bids remotely via a website or mobile platform.
Onsite/Live auction
A traditional physical auction where bidders attend in person to place their bids, happening at a physical address.
Online/Onsite
A hybrid auction that allows bidders to participate both physically at the venue and remotely via an online platform. An auction that takes place both online and live/onsite sometimes at the same time.
FICA Documents
Documents required under South Africa's Financial Intelligence Centre Act (FICA) for identity verification in financial transactions. Buyers and sellers at auctions must provide a valid ID, proof of residence, and, in some cases, business registration documents, payslips, bank statements etc. These documents should be no older than three months.
Pricing
Deposit/Registration
A refundable or non-refundable fee that bidders must pay to participate in an auction. This amount is paid to participate at an auction that is, to get a bidders number. and bid. This amount is refundable if you do not win or succeed at any bid. If you are successful bidder this amount will be use/deducted to the price payable. However, if you are a successful bidder of a car and decide to change your mind this money will not be refunded.
p.s. you do NOT need to pay a deposit/registration to be at an auction you can still familiarise yourself with the process by being present during an auction but you cannot bid, only spectate.
Trade value/amount
The estimated wholesale price a dealership would pay for a vehicle when purchasing it for resale. In South Africa, trade values are determined using industry guides such as the TransUnion Auto Dealers' Guide.
Retail value/amount
The estimated selling price of a vehicle at a dealership, which is usually higher than the trade value. This price reflects the cost a consumer would typically pay for a similar vehicle on the open market.
Starting bid
The minimum price at which bidding begins for an auctioned item. This price may be set by the seller or the auction house/auctioneer.
Hammer price (or sometimes final bid price)
The final bid amount at which an auctioneer closes the sale by striking the hammer. This price excludes additional fees such as VAT and commissions.
VAT
Value-Added Tax (currently 15% in South Africa), which may be applicable to auctioned goods depending on whether the seller is a VAT-registered entity. Some auction listings indicate "VAT inclusive" or "VAT exclusive" pricing. In auctions, this is based on the hammer price e.g. if hammer price = R100 000 then VAT is calculated at 15% of this amount which is R15 000.
Admin fee
A fixed fee charged by the auction house to cover paperwork, processing, and handling costs. This fee is payable by the buyer in addition to the hammer price. e.g. R2500
Buyers commission
A percentage-based fee charged to the buyer on top of the hammer price, usually ranging from 5% to 15%. Based on the bid/hammer price e.g. if hammer price = R100 000 and buyers commission is 5% then buyers commission is 5% of R100 000 which is R5 000
Total sale price payable/Invoice price
This is the all inclusive amount payable which includes the hammer price + Admin fee + Buyers Commission + VAT.
P.s. not all auctions have buyers commission/admin fees and some don't have VAT (but majority do). Actions are different.
Additional Information
Buying a car at an auction can be a great way to find a deal, but it requires careful preparation. Always do your homework before placing a bid—research the vehicle, check its market value, and carefully read the auction listing. On viewing days, take the time to inspect the car thoroughly, and if possible, bring along a mechanic or someone knowledgeable about cars to help assess its condition. While you won't be allowed to test drive the vehicle, you can still check for visible defects, engine condition, and signs of previous repairs. Auctions operate on a voetstoots (as-is) basis, meaning that once you buy the car, you take it in its current state, with no obligation on the auctioneer to repair or refund.
While auction houses aim to disclose all known faults, it's ultimately the buyer's responsibility to conduct due diligence. Look for signs of damage, request/research the vehicle's history where possible, and ask questions if anything is unclear as they are always willing to assist you. Understanding the terms and conditions of the auction is also crucial—know the fees involved, such as the buyer's commission, admin charges, and VAT. By taking the right precautions, you can confidently navigate the auction process and secure a great deal without unexpected surprises.
For any information or inquiries, including how to finance your next vehicle and qualify for a FREE auction buying consultation, contact 079 452 2523.