discussion Pre-Auction Deals - YAY or NAY

[SynicalFox]

Hi All

So a family member found a BMW that's being offered as a pre-auction deal.
The following information is all that is provided:

• Model: BMW X1 sDrive 20d
• Year: 2016
• Mileage: 128000km

The pre-auction deal works as follows:

• We will need to provide the seller with auction information for them to draw up the offer to purchase:
  • Name and Surname
  • ID No
  • Email Address
  • Physical Address
  • Mobile No
  • Alternate Contact
• The auction house requires a commitment fee of 30-50% of the asking price
  • Once paid you get 1h30min to test drive and view the vehicle
  • This is refundable if you are not happy with the test drive

The only other info I have is the number plate which is shown in the pictures of the advertised vehicle.
They seem to be saying they'll give the VIN number once we've provided the above info and paid the commitment fee.

The only reason this seems really viable is the asking price is really low. (Under R110k)
The risk in all of this is not knowing any history of the vehicle before committing to it and that is why I'm asking here if it's way too much risk than it's worth for the price.

Right now as it stands, even if there is major repairs required, it would still not be close to the current retail prices of these on say AutoTrader.
The other risk is it could all be a very intricate scam :worry:

I've personally advised said family member not to consider it at all.

 

[///Avi]

This is a scam, walk away.

 

[Sabretooth tiger]

Definitely a scam

 

[Nukleuz]

👃🐟

 

[David328im]

If it sounds to good to be true, it normally is... Just walk away...

 

[SynicalFox]

Yeah, seems your sentiments are the same as mine.

Link to the website: https://www.infiniteautosolutionspty.co.za/auctions

 

[Teezoh]

Should do your own research first I guess.

Auction scams:

Car auction scams: How to void them and bag a good deal

Here’s the lowdown on the vehicle auction industry via the process of getting new wheels in this way. It can be risky if potential buyers are not well informed.

www.dailymaverick.co.za

Your specific one:

https://www.reddit.com/r/Pretoria/comments/1aqim6c

Review Companies Online | Customer Service & Company Ratings | hellopeter.com

www.hellopeter.com

Red flags from the get-go:
- Website is utter shit
- Car prices are super low
- Their Warehouse points to a Self Storage company https://myplaceselfstorage.co.za/
- Their Head Office points to Aucor Auctioneers http://www.aucor.com/

 

[Teezoh]

Their very first car on auction is actually listed with Lindsay Saker Fourways with different mileage too. Same heading though, clearly just copy and paste.

https://www.cars.co.za/for-sale/used/2022-Kia-Sportage-1.6-T-GDI-GT-Line-S-Auto-Gauteng-Four-Ways/9387833/

and then their RS3 is listed here by Audi

https://www.autotrader.co.za/car-for-sale/audi/rs3/2.5/27366041

 

[KarshS]

Payment up front should be your first STOP sign.

 

[KarshS]

This thread makes me angry

 

[modocrat]

 

[SynicalFox]

This thread makes me angry

Point of the thread is to get assistance from others and general feedback.

Definitely better to ask first before someone makes a regretful decision.

 

[Teezoh]

In the process of getting the website taken down, will update on progress. We have to at least try and make it harder for them.

 

[TurboLlew]

This is one of the oldest scams in the book and very poorly put together. I am not sure whether the scammers should be ashamed to be still running this in 2024 or whether those that fall for it should be ashamed for falling for this in 2024.

They have also chosen a name very similar to a 'real' dealership adding to the scumminess

 

[GravityLee]

This is one of the oldest scams in the book and very poorly put together. I am not sure whether the scammers should be ashamed to be still running this in 2024 or whether those that fall for it should be ashamed for falling for this in 2024.

They have also chosen a name very similar to a 'real' dealership adding to the scumminess

I feel like anyone who is dumb/illiterate enough to fall for below actually does need to pay school fees. This is just so low effort.

“Stretched out from the auction list”
“We are given buy banks”
“System will kickout a 6 digital code”

…and other pearlers.

Infinite Auto Solutions (Pty) Ltd offers a great deal with no additional cost or hidden fees. This purchase is only valid within 07 – 14 days prior to the vehicles auction date, the vehicle needs to be dispatched from our bank storage facilities and stretched out from the auction list considered as pre-sold under your name.

Due to the fact that we do not buy nor stock these vehicles we are given buy banks as liquidated or insolvency. We have to classify you as the potential buyer and register your client profile without having to bid or having to pay more on the vehicle.

STEP 1

If you willing to proceed with purchasing the vehicle out of auction purchase we will require your following details listed below.
• Name / Surname.........................................
• ID no / Passport no....................................
• Email address..............................................
• Physical address.........................................
• Mobile No / Landlines...............................
• Alternative Contact ...................................

STEP 2

Our finance and legal department will then draft a legal binding document with the vehicle detail, Company details & Client details referred to as offer to purchase with a sales agreement attached.

You will be charged 30% - 50% of the asking price to convince the auction managers to consider the vehicle Pre-sold and removed from the auction list.

NB. once you done with the Commitment fee of 30 -50% bank system will kickout a 6 digital code. OTP (buyers code) as a normal SMS, immediately when you obtain your buyers code you can come or you can let us know if you want us to deliver(free of charges)

STEP 3

Upon arrival or delivery you will be offered 1hr30 to test drive and inspection if you are not happy with the vehicle your reservation fee will be fully refundable but if you are happy you will pay the remaining balance.

Company Standard Procedure

• No buyer's code no entry
• No appointment no entry
• No walk ins allowed

We an auction company dealing with bank - repossessed vehicle's & insolvency vehicle's
Any questions our friendly sales team will be more than happy to assist you further more via email, Phone Call nor WhatsApp

 

[Spanky]

I feel like anyone who is dumb/illiterate enough to fall for below actually does need to pay school fees. This is just so low effort.

Agree - As jy dom is moet jy voel

 

[YozTruly]

S

I feel like anyone who is dumb/illiterate enough to fall for below actually does need to pay school fees. This is just so low effort.

“Stretched out from the auction list”
“We are given buy banks”
“System will kickout a 6 digital code”

…and other pearlers.

Sadly it’s usually those who cannot afford to lose their money that falls for this type of scam.

Some just don’t know better and are operating under the old “truth” that cars are much cheaper at an auction. This makes them not question the unrealistically low prices. Then there are the stubborn ones who refuse to listen to reason. I feel less sorry for the second lot but they also do not deserve to lose their money their money this way - not to scammers. Rather they at least get a lemon.

 

[QikNish]

As an auction company owner, beware ...these are known scams.

No auctioneer asks you to pay a refundable fee to reserve a vehicle and pull it out of auction. Scammers sound convincing, use normal auction company addresses and details.

Call the auction company direct and go to the premises, they will verify the scam and save you tens of thousands.

 

[SynicalFox]

Thanks to everyone here for replying and sharing feedback.
The deal didn't sound right for me from the start but family member wanted to continue exploring the deal.

This thread and the info shared has helped me convince them otherwise on this deal.

 

[Nastaliq]

I work in Fraud Management for a large firm. This is called an advance fee scam. you pay money upfront for something that seems like you would be stupid to miss out on. Your brain is anchored with the 50% price, meaning - you think at least theyre not asking for all the money upfront. But this is where you are caught. They make off with the 50% and its a "sorry for you" kind of thing.

Impairments and debt are obviously through the roof in SA currently, and the cost of living crisis is well established here, every year people who are middle class today are no longer middle class tomorrow and the gap between indigent and wealthy widens, scammers know this and thats why "offers" like this seem irresistible. Also, if you go under debt review in SA - thats pretty much a death sentence for you-ask anyone and they will tell you its almost impossible to bounce back from it "on paper". Its for this reason this customer segment is targeted. Not because you have disposable cash, but because once youre screwed, your ability to do anything thereafter is almost nothing. You dont have the resources to hire PIs, Tracers, Ex Cops etc to find these guys and make them pay back the money they stole.

Theres a simple question we teach clients - if youre considering this as a way to score, why arent millionaires and astute businessmen buying up all the "pre-auction" cars (in this case) and marking them up on autotrader to rake in cash?

IF you dont have an answer, thats your answer.