Used cars have become a hot commodity. The latest TransUnion vehicle pricing index for the first quarter of 2015 shows that used car inflation has increased year on year for the 5th consecutive quarter. Used car prices rose year on year by 1.67% in the 1st quarter, a 32-basis point increase over last year’s fourth quarter – the largest year on year rate of increase in used vehicle prices since 2013.
This means that selling a car has never been easier, as buyers increasingly opt for secondhand cars to cut costs. But a large portion of these transactions will be conducted privately between the owner and the prospective buyer without dealer or broker assistance – which can be risky and time-consuming.
“As a layman buyer, it can be difficult to properly assess a vehicle and both parties may find the process of transferring ownership and obtaining financing difficult. Others simply hate confrontation or negotiation, or do not know their rights,” says Jeff Osborne, Head of Gumtree Automotive. “There could also be hidden surprises – the car might have been involved in an accident without the owner disclosing it or perhaps the car is still being financed. Handing over a vast amount of cash and ending up with a big repair bill a few months later is definitely a worst case scenario, but it can happen.”
Gumtree has recently teamed up with MotoFinn, a third party that ensures hassle free transactions between buyers and sellers. The company have contracted with Deloitte to administer all payments and together with DEKRA Automotive and TransUnion, helps buyers and sellers get a fair deal by granting them access to credible information as well facilitating the process (and related admin).
“While we have many trusted dealerships operating on our site (that are of course bound by legislation such as the Consumer Protection Act and other means of buyer protection), about half of the sellers using the site are individuals who prefer to handle the transaction on their own. This is a way of ensuring that both the buyer and the seller are protected when transacting privately. The vehicle is thoroughly inspected and checked (both the condition and the history of the vehicle) for the buyer and the buyer’s financing and credit worthiness assessed for the seller. It’s win-win.”
MotoFinn’s Verified Private Seller model will be available to all Gumtree users at a launch price of R795 per transaction. A similar service for general transacting on the site, Shepherd, has also been launched.
For more information, visit www.gumtree.co.za/pages/motofinn
