Auctions


How to buy a vehicle on auction at SMD

  1. Come to viewing and see if there is a vehicle for you. Feel free to bring an expert with to help you to assess the damage of the car, if any. Speak to our friendly staff to assist you with any queries you may have and familiarise yourself with the Auction Rules.
  2. Bring your RSA ID (Citizens) or Traffic Register and valid Passport (Foreign Nationals) on auction day to register for the auction. You may also need to pay a deposit for the auction, see the Payment section. Find out if the auction you are interested in requires a deposit, then make payment at the bank. When you register, you will be given a buyer number (your ID for the auction). You can register at any time before/during an auction.
  3. Raise your buyer number when you agree to the price of the vehicle being sold. This is called "bidding”.
  4. If you have bought a vehicle, bring your buyer number to the Auction Registration Clerks and get a Pro Forma invoice. This will show you how much your balance is for all the vehicles you bought.
  5. Go to the bank and make the final payment for your vehicles within 24 hours of the auction using the reference on your Pro Forma invoice. Bring your proof of payment back to the Auction Registration Clerks, and a Tax Invoice and Release Note will be given to you. Papers will also be given out when you have paid in full. Some sites carry papers immediately, others receive papers from our Head Office within 10 days. Note: If you are at a repossession Auction or have bought a bank repossessed vehicle, you will need to get FICA approval before we can release your car(s) to you. To do this, bring your original green RSA ID & original proof of residence (not older than 3 months). See FICA below for more. Papers for all repossessed vehicles can be collected after 7 days of sale.
  6. You can now take your vehicle.
  7. If you have not bought anything and you paid a deposit for the auction, bring your buyer number to the Auction Registration Clerks at any time during the auction, and give them your proof of banking details for a refund. A refund will be done in 10 working days. You can also keep your deposit for the next auction. Use your previous buyer card as the deposit to get a new card. Buyer numbers are valid for one auction only.

Auction Rules

Rules of auction comply with the Consumer Protection Act No 68, 2008 (see here for a copy)

Terms and Conditions of an Auction

  1. Admission to site and premises and use of the SMD websites
    1. Right of admission to any SMD premises and the websites are reserved. Please note that any person entering our premises may be subjected to a random body search. All vehicles entering and exiting SMD will be searched. Any person caught stealing will be prosecuted. No intimidation of any person will be permitted at SMD. Any person found to be intimidating another, will be removed from SMD and blacklisted permanently.
    2. Right of admission to online content at www.smd.co.za and live.smd.co.za is reserved and you might be required to register online in order to access content. At registration you will have to supply us with accurate and true information. Supplying us with false information will result in your online account and your SMD account being blocked and blacklisted.
  2. Viewing
    1. Viewing for the auction is up to 48 hours in advance of the auction sale as advertised. Viewing can be done in person at the participating branch or online, however some auctions have exclusive online viewing only. All auctions have an online catalogue.
    2. People wishing to view the actual auction sale online may do so at no cost and do not have to register. However, SMD reserve the right to change this at any time and may require you to register in the future. We also have the right to terminate your online viewing session at any time to manage online load.
  3. Pre-Bidding
    1. Simulcast Auctions are now open for Pre-Bidding. To participate, simply register online for the auction and place your bid. You will be notified when you are the highest bidder, and also when you have been outbid.
    2. During the Pre-Bidding process, other registered buyers can bid against you.
    3. Pre-Bidding is open on all items for sale, prior to the auction of that item. During the Pre-Bidding process, the buyers can regulate the bid increments.
    4. Once Pre-Bidding closes, that is when the auction of the item commences, the Auctioneer will regulate the bid increments.
    5. The highest Pre-Bid amount on any vehicle will be the starting bid for the Auctioneer.
  4. Autobid
    1. If you are registered online for an auction, prior to the sale of the item, you can enter an Autobid amount against each item or lot you are interested in.
    2. An Autobid is the maximum bid you are prepared to pay for an item. The system will then automatically bid on your behalf up until your maximum.
    3. Bidding increments will be determined by the Auctioneer, and may or may not reach your maximum Autobid amount.
  5. Auction process
    1. All buyers will be bound by all announcements made before, and during the auction sale by the Auctioneer irrespective of whether he is present at the time such announcements are made or is an online buyer.
    2. Goods put up for sale by auction are in Lots, and each Lot is, unless there is evidence to the contrary, regarded to be the subject of a separate transaction.
    3. The Auctioneer has the right to control and regulate the bidding, in accordance with industry standards. The Auctioneer also has the right to withdraw any vehicle/article prior to sale, without notice.
    4. Online Buyers will not be permitted to bid against themselves, except in the case where they are the highest bidder on a reserved vehicle, and the buyer willingly wishes to bid against him/herself in order to meet the reserve.
    5. The highest accepted bid will be called out as “Sold!” together with the buyer’s number (also known as “the fall of the hammer”).
    6. If you buy online, a notification will be shown that you won the lot and it will automatically be added to your account or purchase “basket”.
    7. On the fall of the hammer each sale becomes final. In the event of a dispute during the auction at the time of sale of the Lot, the Auctioneer may sell the vehicle to the original purchaser or he may immediately re-auction the lot.
  6. All vehicles are sold as “Motor Salvage”, irrespective of their appearance or condition
    1. All vehicles are sold as is.
    2. Unless the contrary is announced by the Auctioneer, lots on sale are by voluntary surrender by their respective owners, except for bank repossessions which can be identified on your catalogue by the word “FICA”. Vehicles on sale at SMD are from SA’s leading short term insurers and finance institutions, with supplements.
    3. Some vehicles are sold with a reserve price, and can be identified where the vehicle is marked Subject to Confirmation (STC).
    4. The buyer agrees that he/she has acquainted themselves with the condition of the vehicle(s) prior to sale and understands these vehicle(s) may need repair in order to be in a safe working condition.
    5. The buyer acknowledges that neither the seller of the vehicle(s), nor any SMD representative gave any warranties or guarantees, or made any representations with regard to the condition or state of any vehicle sold.
    6. All vehicle descriptions given by SMD are a close representation only. SMD will not be held liable for errors in description, and no refunds or returns for same will be entertained. The responsibility to verify the exact derivative of each vehicle lies with the buyer.
    7. All batteries and spare wheels are removed prior to sale, except where the vehicle is a bank repossessed vehicle, identified with the word FICA.
    8. Additional costs for the buyer’s expense and discretion will include: (1) Repairs and sourcing of repairs of vehicle(s), (2) Keys, if none at time of sale (3) Spare wheel and battery (4) Removal of vehicles from premises (5) Licensing (6) Police Clearance Fees where applicable.
    9. All vehicles have Codes, which are in fact eNaTIS lookup table values.
      • Code 2 - Widely described as a “Used Vehicle”, can be in a damaged state.
      • Code 3 - Widely described as a “Rebuilt Vehicle”, can be in a damaged state.
      • Code 4 - Is a “Permanently Demolished Vehicle”. By law you can only buy this vehicle for parts and cannot repair it and drive it.
    10. When the catalogue or online screen indicates “Start”, it is an indication that the vehicle did start upon arrival at our SMD premises. It is not a guarantee that the vehicle is in the same condition and that the vehicle will still start.
  7. Registration
    1. All buyers are required to register for an Auction and registration starts no later than 8:00 on auction day. Some auctions are open for registration before the auction online. The Auction will not be delayed for any person, and will start strictly at the time shown. However, you may register at any time before and during the auction. No buyer may register after the sale of a vehicle in order to be able to purchase a vehicle. All SMD Loyalty Card holders are required to register for each auction and are subject to all Auction Rules.
    2. Online buyers are required to register online and pay a deposit. Make sure you do this well in advance of the auction, as you will only be allowed to partake in the auction once your deposit reflects in our bank account.
    3. To register for an Auction on site: SA Citizens: Bring your RSA ID Book. Foreign Nationals: Bring your Traffic Register, valid Passport. You cannot register on a Passport alone. Some auctions require that a deposit is paid for registration. See your Auction Rules to find out if the auction you wish to attend requires a deposit.
    4. In terms of Regulation 26 (3) of the Act, buyers who cannot attend the auction in person may send a person on their behalf, but must produce a letter of authority to SMD at registration.
    5. At registration the buyer is asked whether he/she would like to receive communication from SMD by SMS and/or email, and if the buyer agrees their details are loaded onto the SMD system. Should a buyer wish to stop receiving communication from SMD at any time, he/she can contact SMD to stop all future notification.
    6. Do not let anyone buy on your card. If they fail to pay, you will have to pay for their purchase(s).
    7. For all purposes, including litigation, relating to and arising from these Rules of Auction, the buyer determines as his/her Domicilium Citandi et Executandi the address given by him/her at the time of registration and which is signed by the buyer.
  8. Deposit
    1. A deposit may be payable to register for an Auction, and can be paid by the following methods: Transfer, Cash deposit or Bank / Bank guaranteed cheque.
    2. No cash can or will be accepted on site due to security reasons.
    3. If you decide to pay by cheque of any kind, clearance can take up to 10 days, and until all the funds have fully cleared our account, no vehicle will be released. This includes bank/bank guaranteed cheques.
    4. Deposits will only be refunded to the buyer if they have not bought anything on Auction according to the Vendor Roll (Recording of the Auction). Original proof of your banking details is needed to process your refund, as all refunds are done by Electronic Transfer only.
  9. Payment terms
    1. Effective 21 July 2014, a 0,5% cash handling fee will be levied on all cash purchases.
    2. Effective 5 January 2015 the document handling fee will increase to R 1325 excluding VAT.
    3. What you bid for is not the final amount you will have to pay. Depending on which auction you attend, the fees are calculated for each vehicle as follows:
      • A) Bid + 5% (buyer’s premium) + 1325 (document handling fee) + VAT on total = Total (all exclusive auction) e.g. R 10,000 + R 500 + R 1325 + R 1,655.50 = R 13,480.50
      • B) Bid + 1,325 (document handling fee) = Total (all inclusive auction) e.g. R10,000 + R1,325 = R11,325
      • All prices and fees shown on your Pro Forma Invoice are final, and cannot be negotiated or discounted.
    4. Full and final payment must be made within a maximum of 24 hours of the auction, and is specific to each auction. Please ensure you familiarize yourself with the payment period for each auction. For online purchases this period is strictly 24 hours.
    5. If you decide to pay by cheque of any kind, clearance can take up to 10 days, and until all the funds have fully cleared our account, no vehicle will be released. This includes bank/bank guaranteed cheques.
    6. The buyer must notify SMD within the payment period of all payments made.
    7. The quickest way to pay for your vehicle is by requesting your bank to transfer the funds from your account to ours, using the same bank, and the reference shown on your Pro Forma invoice.
    8. You may not pay your balance using a debit or credit card.
    9. No vehicle is sold subject to finance.
  10. FICA
    1. In accordance with the Financial Intelligence Center Act (FICA) No. 38 of 2001, no repossessed vehicle/article will be released until all parties to the transaction, including the bank, have been identified and verified in terms of the requirements of the Act.
  11. Removal of vehicle(s)
    1. Once full and final payment has cleared our account, the buyer must remove their vehicle(s) within 48 hours of this time or storage fees may be charged. All outstanding storage fees, if applicable, must be paid before the vehicle will be released.
    2. No vehicles may be removed during the Auction sale. Vehicles can only be removed from the premises until 16:00 weekdays only, excluding Public Holidays.
    3. Vehicle(s) on our premises from the time of purchase to the time of collection in regards to the vehicle(s) purchased will be at the buyer’s risk and own account, in particular for any damage or shortage which may occur.
    4. Vehicle(s) may only be removed from SMD’s premises by a third party if they have a signed letter of consent from the buyer, and a certified copy of the buyers ID.
    5. No vehicles may be repaired in any SMD yard.
    6. Buyers must remove all previous owners signage and branding, in particular any company branding, before registration, sale or use of the vehicle.
  12. Registration papers and licensing
    1. The document handling fee charged is a pre-sales administration fee to prepare documents for sale. This is not the fee charged by Licensing to change ownership of the vehicle and license the vehicle in the new buyer’s name. This fee is for the buyers account.
    2. Papers will be available for collection immediately after the sale, except where there is a paper delay.
    3. Papers for repossessed vehicles can be collected 7 days after sale.
    4. Papers will only be given to the person who registered for the auction. Papers will not be issued on a driver’s license. Papers will only be issued on a RSA ID or Traffic Register and Passport, and once full and final payment has been made.
    5. Notice of Change of Ownership (NCO) documents will be given to the Registered Buyer to complete in his/her name only.
    6. Papers will only be given to a third party if they have a signed letter of consent from the buyer, and a certified copy of the buyers ID.
    7. In terms of Road Traffic Act 1989 Regulation 237(1), no person may buy, sell or trade with an unregistered or unlicensed motor vehicle.
    8. If you purchase a Code 2, you must register the vehicle in your name within 21 days of purchase, as per the Road Traffic Act 1989 Section 14. Code 2 vehicles can be registered before they are repaired.
    9. If you purchase a Code 3, you must first repair your vehicle, and then take it for Police Clearance. You will then be able to register the vehicle in your name.
    10. SMD also does not sell spare parts, but sells vehicles as whole units. A Code 4 vehicle is sold with No Papers and therefore does not need to be licensed.
    11. Any traffic fines received from vehicles sold by SMD, will be transferred onto the buyer’s name and for their account.
    12. Date of first registration on the registration papers, is not necessarily the year model.
  13. Breach / Cancellation
    1. You cannot cancel any vehicles you have bought. If you buy one or more vehicles, you must pay for all your cars.
    2. In the event that (1) full payment of the total purchase price for all vehicles shown on the Pro Forma Invoice, (2) the buyer cannot comply with FICA or (3) within the payment period has not been met, the buyer will have defaulted on the sale and agrees to the following:
      1. Immediate cancellation of the sale(s) without notification to the buyer.
      2. The buyer will have no further claim on any of these vehicle(s).
      3. The buyer may be blacklisted on the SMD system, and such buyers may be refused permission to purchase at all SMD branches in future.
      4. In the event where the buyer has made any payments towards the above-mentioned vehicle(s), the buyer hereby authorizes SMD to deduct a cancellation fee of 10% of the total agreed purchase price, as pre-estimated and liquidated damages, with a minimum penalty of R5,000 (usually the auction deposit).
  14. General
    1. SMD reserves the right to cancel any sale for any reason whatsoever, in their sole discretion, and at any time prior to the vehicle being removed from the SMD premises. Should SMD elect to cancel the sale, the buyer will be notified verbally and all monies paid by the buyer to SMD will be refunded within 10 working days. Original proof of banking details will be requested in order to process any refund.
    2. When using the online bidding site at live.smd.co.za, we will use the city you entered upon registration and display it on our online systems whenever you enter a successful bid.
    3. Your experience of our online auction system is dependent on your own environment. If from experience you notice that your connection to our system is slow, please keep in mind to leave yourself ample time to respond to other bids if need be. This especially applies when trying to bid in the last 5 seconds of a Timed Auction, or right before the countdown finishes on Simulcast Auctions.

Payment

  1. Electronic / Cash transfers only. To get a Payment Advice giving you a deposit reference, login to the website and click here. Alternatively, please use your ID number or Traffic Register as a reference for an auction deposit. For all payments, please use only the Reference used on your Pro Forma Invoice for full payment. Transfer from your bank to the FNB bank account shown below. Use the immediate payment option so that the money reflects immediately, and we can release your vehicle.

    FNB
    ACC: 62093203546
    Branch: Gauteng East
    Code: 252605

  2. Bank or bank guaranteed cheques made out to "Salvage Management & Disposals (Pty) Ltd" only. Please note that if you pay any part of your invoice with a cheque, we will require that they clear our account before any vehicles will be released. This usually takes 10 days. Do not deposit any cheques; all cheques must be handed in at registration/payment. Banks have also put a limit on cheques, and cheques may not exceed R500,000.

The quickest way to pay for your vehicles is by doing either (1) a bank transfer / internet payment or (2) cash deposit, using the Reference on your Pro Forma Invoice, from your bank (e.g. ABSA), to our FNB bank account, using the immediate payment option. All cash deposits will be subject to the 0,5% cash handling fee.

FICA

Notwithstanding any contrary provision, no second hand, fleet, rental or repossessed sales to SMD will be completed until all parties to the transaction have been identified and verified in terms of the requirements of the Financial Intelligence Center Act (FICA) No. 38 of 2001. SMD will only accept original documents or certified copies. No photocopied or faxed documents will be accepted. No exceptions will be made.

If you are a business

You will need to bring all of the following:

  • SARS letter with VAT Number (Notice of registration)
  • Owners ID document and proof of physical home address (and ALL partners/directors)
  • Proxy details from License Office (eNaTIS person entity particulars)
  • Proxy & Representative's ID Document
  • Business Certificate of Incorporation (CK1 letter)
  • Current proof of Business address (See applicable forms of proof of address below)

If you are a private buyer

You will need to bring all of the following:

  • Your ID Document
  • Current proof of address (See acceptable forms of proof of address below)

Acceptable forms of proof of address

Applicable to documents that are issued:

  • Monthly: must not be older than 3 months, OR
  • Annually: must not be older than 12 months

Choose from one of the following reflecting the name and address of either the person or business:

  • A utility bill (e.g. water / lights bill)
  • An original bank statement. No internet statements, copies or bank profiles
  • Municipal rates and taxes invoice
  • Telephone and cellular account
  • Valid TV license
  • Recent long-term or short term insurance policy document issued by an insurance company
  • Recent motor vehicle license documentation
  • SARS document
  • Retail account document e.g. Edgars, Jet etc.
  • Affidavit from co-habitant, property owner or employer
  • Tribal authority letter - Body Corporate/Governing body letter or statement
  • Official university/technikon registration letter
  • Official employer letter for mine employees
  • A recent lease or rental agreement (Must not have expired)