Dubai: Spending some time on research about vehicle auctions in Dubai can save a bunch of money in this stressed economic times. With car auctions held almost every week by different auction companies, chances that a buyer will strike a bargain are better than ever.
"Prices are definitely lower than before the crisis", said Mohammad Majeed, a freelance car dealer from Khartoum, Sudan, at last week's Golden Bell auction at the Al Aweer car complex in Dubai, where he was studying the auctions tables over and over again.
"And not only this - also the quality of the cars on sale has become better. There are more and more younger and lower mileage vehicles available," he said.
Mohammad is kind of a veteran in the business, buying cars at auctions in Dubai for his friend's dealership back home in Sudan since a few years.
Besides the GCC countries, Sudan, Ethiopia and Kenya are the major export markets for pre-owned cars from Dubai. The vehicles find their way from Jebel Ali port to Djibouti, where they are distributed further, pepped up a little bit and then sold to new owners with a reliable profit.
Today, the abundance of vehicles on auction makes life easier for Mohammad and his many colleagues, and even individuals show a rising interest for a quick buy.
Martin Valinsky, a Russian expat working as an IT expert in Dubai, was looking around for a cheap car quite a while at Al Aweer until he was attracted by the shouting of the auctioneer from the auction yard in the centre of the complex.
He now definitely is looking to purchase his car by auction.
"What I see from the sales prices here, it is way cheaper than at the dealerships. But one has to be careful about the condition of the cars on auction since you have no possibility to test drive them," he said.
It is true that the cars at the auctions are sold on an "as is" basis, which means the prospective buyer is able to judge the car only by taking a look from the outside and rely on the technical report which is attached to the windshield.
Nevertheless, at last week's auction in Al Aweer some sellers who were present opened their car for a short drive to people who showed genuine interest. The technical report, a comprehensive test of the car, is conducted by Eppco-Tasjeel for Golden Bell auctions. Even if it does not state too much, major damages such as malfunctioning brakes or gearshifts or the odd "engine not starting" are turning most buyers away.
For individual buyers, it is essential to visit the auctions a few times before starting to bid to get a feeling what is going on and get used to the incredibly quick lingo of the auctioneer.
To take part at the Golden Bell auction, bidders have to present a refundable Dh3000 deposit and then get a small signboard displaying a number with which they can be identified after the auction is done.
The auction itself proceeds very quickly; the sale of a car does not take more than a minute. Cars are being driven one-by-one in front of the tribune where the auctioneer speaks in his head-worn microphone, asking for the first bids. There is no minimum bid, but sometimes the owners or their representatives start with a basic amount, and continue to bid further when they feel that the price should come up a little bit more.
But at last week's Al Aweer auction, some sales prices indeed remained impressively low. A 2007 Mazda 6 went for Dh23,000, a 2006 Toyota Camry for Dh19,000, a 2007 Ford Mustang for Dh26,000 and one-year-old Mitsubishi Pajero 4WD cost only 63,500.
Even if some repairs or cosmetic adjustments have to be factored in by a buyer, it's still a good deal as similar cars offered by private owners through trading websites like Dubizzle all show higher asking prices, not to mention the prices at used car dealer showrooms.
By comparison, auctioned cars are currently some five to 15 per cent cheaper than privately traded cars and up to 30 per cent cheaper than dealers' cars. This, however, prompts many dealers to buy used cars at auctions, which then are moved to the dealers' car parks with little changes than a higher price tag.
But it seems the abundance of cars on auction won't dry up in the foreseeable future. Companies like Golden Bell Auctions offer up to hundred cars weekly from different sources, mostly banks and leasing companies, dealerships wanting to get rid of old stock or trade-ins, car rental and transport firms, taxi companies, individuals as well as Dubai Government.
For example, if you want to buy a Dubai Police Chevrolet withdrawn from service, but with it original beige and green paint and battering rams still fixed on the bumpers, take a look at the Al Aweer's next auction.
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