Find vehicle auctions selling FNB repossessions, and you will open yourself up to a world of opportunities. The first place that you should look is on www.wesbank.co.za, here you will be able to click on a link to the site that contains all of the information you need to know about vehicle auctions that they have. As FNB is a part of the Wesbank group, the rules and regulations that apply to the Wesbank repo auction apply to any FNB auction.
Although you may find vehicle auctions selling FNB repossessions, there are certain things that you need to bare in mind.
- You will have to pay a registration fee of R5000,00 which will serve as your deposit should you bid on a vehicle. Should you have the funds to pay for the vehicle, then this R5000,00 will be returned to you. Should you on the other hand default on paying the amount owing on the vehicle, then this amount will be kept by the bank and the car will be put back on auction.
- All vehicles come as is. This means that should there be a mechanical or electrical fault with the vehicle that you only discover once the sale has gone through, then you are held responsible for the repairs. It is therefore your responsibility to get the car inspected before you start bidding. You however will be charged at an additional fee.
- You can apply for vehicle finance before the auction in order to secure the vehicle you wish to purchase. This can be applied for through Wesbank and is a quick and simple process.
What is great about the auction of Wesbank or FNB repossessed vehicles is that they are sold well below market value. The reason for this is because the previous owners of the vehicle defaulted on their vehicle finance repayments and the bank had no other choice but to take back possession of the vehicle. Although this situation is unfortunate for the previous owners are now without a car, it does provide you with an opportunity to purchase a vehicle at a really great price. These auctions are held weekly and there are a number of brands available for you to choose from.
However I do suggest that you do not enter in to an auction without a fixed budget as the main reason why so many cars are being repossessed by banks is because of the fact that people are buying beyond their means. Instead of purchasing a vehicle which may not be the flashiest and fits in to their budgets, people have begun purchasing more expensive cars and paying them off over longer periods. In addition to this you are no longer required to pay a deposit on a vehicle but rather can pay a balloon payment at the end of your repayment period. This combined with extended instalment periods has led people to believe that they will actually be able to afford these more expensive vehicles as they believe that in five years from when they purchased the car, they will be earning more or will be able to have saved enough.
This is very rarely the case and as a result they spend all of this time paying off instalments on a vehicle which they cannot afford when they are expected to pay the bank the balloon payment. So instead of finding yourself in that exact position, take great caution at setting your budget and do not get caught up in the excitement of the auction. It will serve you better to purchase a more modest car than to get a car to impress people only to lose it back to the banks.