The auctioneering market,poised for a shift

South Africa’s auctioneer market is poised for a shift as auctions grow in popularity over traditional retail sales platforms against a backdrop of credit ratings downgrades and news that the country has slipped into a recession. While there is a lag effect in the impact of the country’s downgraded status by international agencies, South Africans can expect the maturing auction sector to expand as an accelerated sales platform option. This is according to Fanie Bielderman of Aucor, South Africa’s oldest and largest multi-asset auctioneer.

Economists are predicting greater pressure for consumers if credit becomes more expensive, but given that interest rates have not changed since the downgrade announcements, Aucor has not yet seen a surge in assets available for disposal. In fact, stock levels have remained fairly consistent.

“We believe that a greater range and scope of assets will become available on auction as companies and individuals adapt to changing market conditions. In addition, we are seeing a surge in the number of people attending vehicle auctions looking for value purchases – a trend which we predict will translate into greater numbers of qualified and cash buyers at auctions,” said Bielderman.

In cash-scarce times, the speed and finality of auctioneering is a major draw-card for corporates. Auctions offer a market platform with a number of potential buyers bidding for assets at a single point in time. Once the hammer falls, settlement takes place within specified periods and there is no room for any further negotiation by buyers. This much-needed certainty, coupled with greater agility, is an attractive benefit.

For buyers, auctions offer the opportunity to purchase assets at fair value. Auctioneering is the apex between supply and demand, so buyers often find bargains at better prices than retail purchases or private sales.

Details: www.aucor.com