Complete Details on Car Auctions in UAE: Buying Emirates Auction / Salvage & Reconditioned Vehicles

In contrast to the UAE's traditional car market, car auctions are a place that provides a chance to purchase used, luxury, repossessed, fleet, government, and damaged vehicles. Purchasers bid on the spot at the showroom or online, rather than paying a set price.

This article will give an overview of UAE car auctions.

What is a Car Auction in UAE?

A car auction is an event which involves a bidding contest for the purpose of acquiring a vehicle from a registered bidder. By bidding the highest value, one can win the car at auction with the requirements of the terms of the auction and potential reserve or approval requirements.

Everyday sedans, SUVs, company fleet cars, bank repos, abandoned cars, police or government cars, luxury vehicles and import sedans and SUVs or salvage cars that were in an accident.

After winning it is generally less possible for a buyer to negotiate in a purchase as in a showroom. This is an important reason why inspection, research, and setting a maximum bid are especially important.

Where Do Auction Cars Come From?

An auction vehicle's condition, paperwork and risk can be impacted by its source.

Confiscated, abandoned, or government-owned cars can be featured in government and police auctions. When a loan defaults, repossessed cars can be included in a bank auction. You might be able to get a trade-in, lease return, and company car at dealer or fleet auctions.

There are several different types of auction cars, including salvage auctions, which are for vehicles that have been wrecked or damaged by an accident, and special auctions, which feature classic, luxury, commercial, and unusual cars.

Live vs Online Car Auctions

a. Live Auctions

In a traditional live auction, bidders go to the auction house, sign up, and are assigned a bidder number or another means of identification. The vehicles are displayed sequentially, and the buyer who makes the winning bid in real time wins.

This format enables buyers to get a feel for the auction hall and, if allowed, view cars before they place a bid.

b. Online Auctions

The UAE has witnessed a surge in the importance of online auctions. These purchases can be made online, with photographs and condition details available, and bidding done via a website or app.

Some digital auction sites also offer inspection reports, descriptions of any damages, and videos. This makes the process easier, but it's important that the buyer reads the listing first and then bids accordingly.

How Does Emirates Auction Work?

Emirates Auction is among the most popular auction websites in the UAE. It offers an Auction section for vehicle auctions, where registered users can view vehicle lots and register for auctions.

The basic procedure is:

1. Set up and verify an account.

2. Provide the required information and security deposit.

3. Search available vehicles.

4. Read the complete listing and auction conditions.

5. Look through photos and inspection information.

6. Inspect vehicle (where inspection is available).

7. Set your maximum bid.

8. Place the bid.

9. If you win, pay in full.

10. Organize collections, registration or export.

The deposit and bidding rules can vary according to the auction. At present, Emirates Auction says it requires a 20 percent security deposit for the amount of the bidding limit. Please always consider the current terms before transferring money.

What is “As Is, Where Is”?

This is one of the most crucial auction terms for a person who is new to the auction world.

“As is, where is” indicates that the customer is taking over the car in its current state. It should NOT be treated as a new or certified used car that comes with a standard warranty.

The mechanical, electrical, cosmetic, or structural issues might not be readily apparent in photos.

So, don't take any chances that the attractive auction price means it's a car free of issues.

What is the Definition of “Run and Drive”?

The meaning of a “Run and Drive” listing should also be considered carefully.

It typically means the car will start and drive during the check. It does not imply that the engine, gearbox, suspension, air conditioning, electronics or safety systems are in good condition for the long-term.

Even if the listing says that the car is running, professional inspection is crucial for a damaged vehicle.

What Type of Cars Can You Buy?

1. Salvage Cars: What You Need to Know?

Salvage cars may be some of the most affordable vehicles to buy at auction, but they pose the highest repair risk.

It can include any body, chassis, engine, transmission, airbag, suspension, or electrical system damage. Flood- or fire-damaged vehicles and vehicles that have been cosmetically repaired must be approached with extra sensitivity, as issues could be present, though they do not show externally.

Determine the reason for the salvage, mark up before bidding, and make a best estimate of the total repair cost.

A very cheap-looking car at AED 20,000 could turn into a comparative titanic effort if the towing, inspection and registration, repairs, and parts add AED 15,000 or AED 20,000.

2. Reconditioned Cars: Are They a Better Option?

A reconditioned vehicle is a vehicle that has been fixed up after an accident or mechanical damage. How good the repair is determines its value.

Inspect for uneven gaps between panels, paint variations, over-spray, and welding residue. Most importantly, check out the chassis, suspension, airbags and electrical components.

Any reconditioned vehicle needs a professional inspection, especially if it's been in a significant car accident.

3. GCC, US and Japanese-Spec Cars

Vehicles from various markets such as GCC, US and Japanese specification vehicles can be included in UAE auctions.

A 'GCC' built car tends to be more suitable for the regional environment and could be more maintainable and easier to sell locally. Imported vehicles may be available for a lower price or for unusual specifications but may have different parts, equipment, or accident history.

When you're considering a bid on a car that's been imported, you should do the following to verify:

• VIN and country of origin

• A record of accidents or floods in the past

• Vehicle specification

• Parts availability

• Registration eligibility

Whether the car is suitable for your envisioned use

Inspect the Car Before Bidding

Always check out the car in person, and never solely on the auction photographs.

Inspect the exterior for mismatched paint, over-spray, uneven gaps between panels, or repaired areas. Check the chassis for damage, particularly following a serious accident.

Engine should be inspected for leaks, smoke, overheating and strange noises. Where permitted, inspect transmission operation, brakes, suspension and electrical systems.

Look for warning lights on the dashboard and inspect airbags and seat-belt systems following a crash.

Verify VIN and Vehicle History

The VIN may be used to determine the previous record of ownership, accident history, import and mileage history if any.

Check the miles reported against the service records and check for discrepancies. A vehicle history report should be used in conjunction with, and not to be used as a substitute for, a physical examination.

How Much Does an Auction Car Really Cost?

The amount you win is just the initial bid.

Buyers need to always check the exact fee on a particular listing and not rely on a general percentage.

How to Set Your Maximum Bid?

Never, ever, never, make a maximum bid when there is another bidder on the table.

Do research before buying on the value of a comparable vehicle in good condition. Then deduct expected repairs, auction fees, VAT, transport, registration and a contingency amount.

For example:

Maximum Bid: Market Value – repairs - fees – transport - registration - risk allowance

What Happens After You Win?

The buyer will usually have to pay after winning, in the time period defined by the auction. Then, documentation and collection arrangements must be completed.

• It may include insurance, technical inspection, ownership transfer and registration for a roadworthy vehicle to be used in the UAE.
• If your car has been damaged or cannot run, it may have to be towed from the auction lot, instead of being driven away.
• The exact process depends on the auction house and the vehicle's condition.

Can You Export an Auction Car from UAE?

Yes, auctioned vehicles may be exported and not registered in the local state!

This may include an export certificate, required inspection or testing, port transportation, shipping and customs clearance in destination country. These costs should be taken into account by the international bidders before they place their bids.

Pros and Cons of UAE Car Auctions

a. Advantages

Auction buying can offer a better choice of vehicles, may offer reduced buying costs, and may offer vehicles that are not usually seen in the dealership. The online auctions also enable bidders to take part without going to a physical auction.

b. Disadvantages

The worst drawbacks are restricted inspection time and "as is" sales, unknown mechanical issues, and the risk of paying too much due to competition.

Salvage vehicles carry the risk of vehicle repairs and registration risks.

Common Mistakes First-Time Buyers Make

The biggest error is simply to see the starting price rather than the final price.

Others are missing out on checking the vehicle's history, assuming that “Run And Drive” signifies that the vehicle is in top condition, failing to consider any registration limitations and forgetting to include any auction fees.

Another significant issue is emotional bidding. Determine the highest price you can afford before you start the auction and end when you hit your max.

Should You Purchase a Car at Auction?

If you are the right buyer, yes.

When the history and condition of a vehicle are clear, it can be a good value to get a clean repossessed, fleet or used car. Even reconditioned cars might be worth it if repairs have been done professionally.

Salvage cars can have a higher savings potential, but typically should only be considered by buyers with knowledge of auto repair and the ability to accurately estimate repair costs.

UAE Car Auction Checklist

Before bidding, please verify:

• The condition and damage of the vehicle

• The number of times it has been used in the past, and its VIN

• The first two pieces of information are mileage and service information

• GCC or imported specification

• Bicycle structure and frame

• Engine and transmission

• The use of airbags and safety systems

• Registration eligibility

• All auction fees and VAT 

• Repair and transportation costs

• Payment deadline

• Arrangements for the collection and export of the material

Final Takeaway

Car auctions in the UAE can be the gateway to used cars, repossessed cars, fleet cars, luxury cars, abandoned cars, salvage cars, and reconditioned cars at potentially good prices.

However, buying auction cars is more in-depth and research-intensive than a standard showroom purchase. Know what type of auction it is, read the condition report, validate VIN and documents, review the vehicle, and estimate all costs before bidding.

Most importantly, bid at least to the maximum amount before the auction begins and never bid over that maximum amount.