Online auctions have their place, but a longtime name in the automotive business, Dickson Group, has gone one further with Singapore's first physical live auction for pre-owned vehicles. Will it be a game changer?
As with all auctions, the event offers vehicle owners the opportunity to receive higher returns for their pre-owned vehicles, on top of the selling price of their vehicles to Dickson. So if you're pretty savvy with car prices and trends, the auction might be another viable avenue for car sales.
Part of Dickson's intent is also to add a layer of transparency in the bidding process and facilitate fair trading for pre-owned vehicles between sellers and dealers.
Dickson's in-house valuation specialists will view the prospective vehicle the potential seller brings in and give a quotation based on current market prices and the vehicle's condition. If a sale is made, sellers will be paid the agreed price upon handover, and a pre-auction inspection will be done at Dickson Auto Care Centre.
The vehicle then undergoes a 38-point inspection to ascertain its condition. This includes an engine diagnosis scan, hoisting to check for undercarriage damages, and a test drive to ascertain the vehicle's drivability. An assessment report of the vehicle's condition is then generated for prospective buyers, and the vehicle will be washed and sanitised before it is displayed.
The live auction
Potential bidders come in the form of Dickson's network of over a hundred car dealers. The live auction will be conducted via Dickson's computerised system in a dedicated auction hall at the Dickson building, and the bidding process for each vehicle will last for 60 seconds.
All bidders will be seated in the Auction Hall and sellers are welcome to watch the live bidding from a private viewing room for full transparency of the entire process, as the results are immediate.
If the winning bid is higher than the agreed sale price between Dickson and the seller, then the seller earns the difference. In terms of fees, the seller pays a consignment fee of SGD68 along with a Contract Completion Fee (CCF). CCF is calculated as 0.38per cent of the final bid price or SGD250 whichever is higher. Should the difference earned be lower than the CCF, then only the consignment fee is payable (collected upfront regardless of the bidding result).
That said, while the process seems to offer transparency and an opportunity for sellers to get a little more out of their car, this also means you'll have to be a little savvy so as to ascertain if the minimum market value is worth the punt.
The first live auction is slated for July 18, 2023, so there’s plenty of time to do your homework. For sellers who are looking to buy a new car as well, Dickson can also assist with the payment of the registration of their new vehicle before their pre-owned vehicle is handed over.
ALSO READ: Last emperor of China's watch sells for record $8.4m in Hong Kong auction
This article was first published in Potions.sg.