Trend-spotting in the auction world

“Park Village Auctions stayed one step ahead during this challenging time. We did this through continued diversification, innovation and placing our clients’ needs first,” says Roy Lazarus, managing director of Park Village Auctions (PVA).

Auctions continue to be a preferred method of selling and buying. They offer both the buyer and seller almost immediate results, which add to their convenience. The company looks back at 2013’s biggest auction trends, which it predicts will continue into 2014.

The popularity of auctions growing due to volatile markets

With South Africa’s current volatile market, business owners sometimes need to sell their assets rapidly, at the best possible price. Auctions asset sales are excluded from Section 55 and 56 of the Consumer Protection Act. Asset sales on auction are sold with no duty to repair or “as is” (voetstoots). The seller does not face any risks to take assets back within the CPA’s set six month period, as long as he or she has disclosed the assets defects.

Online auctions gaining popularity

PVA’s online auctions also contributed towards the company’s consistent growth during 2013. “The industry should take note of the specific challenges that South Africa faces and adapt to them,” Lazarus said. South African consumers’ awareness and trust of online auctions grew in 2013. This contributed to an increase in the popularity of online auctions as a preferred method of buying.

“Our specialised online and real-time auction platform gave and still gives consumers from all over the country and the globe the opportunity to bid on our assets,” Lazarus added.

Vehicle auctions are going public

The company also expanded their vehicle auction department to include public vehicles. “Auctions are a fast and safe method to sell your vehicle,” Lazarus said. “In the current economic conditions, second-hand vehicles are an attractive option for consumers who want reputable brands at affordable prices.”

The property market and auction market are working closely together

PVA experienced exceptional growth in the property sector in 2013 and the industry has seen a number of new entrants into the market. According to Lazarus, auctioning of properties is growing in popularity and is now recognised by the public as an effective method to buy and sell properties.

Park Village believes that the auction industry will go from strength to strength and will become the preferred method to transact in the coming years.