This new auction system is quoted as a ‘triple-win’ for sellers, dealers, and Dickson Auto Group.
Dickson Auto Group, a Singapore-based automotive dealer, recently announced the launch of an in-person live auction for used cars. The system differs from the traditional process which involves selling a vehicle to a used-car dealer or dealing it on a used-car sale platform.
Instead, this vehicle will be evaluated by Dickson first, then auctioned off to a pool of used-car dealers who bid behind closed doors, with the highest price then being passed on to the seller.
To ensure fairness to the seller, a pre-sale inspection by Dickson is done for each car, which it claims will offer “a fair quotation based on current market prices and overall vehicle’s condition”. If the owner agrees to the offer presented to them, that sum will be paid to them first.
The auction for each vehicle lasts only for 60 seconds, with the dealers bidding on computers in a centralised auction hall. The vehicle owner can observe the process from a private viewing room behind the hall.
If your vehicle crosses the auction block and the final price exceeds this sum, the owner will be paid the difference, minus fees. Alternatively, in a situation where the auction price is below the agreed price with Dickson, then the owner does not need to pay the difference.
“Vehicle owners often face difficulties in getting the best prices… They may be disappointed when a pre-agreed selling price is subsequently reduced when they are ready to sell their vehicle,” said Mr Kim Wah Boon, founder and chief executive of Dickson Group.
“Buyers, on the other hand, may worry that the condition of the vehicle is not up to their expectations when they collect it. These uncertainties and lack of transparency can affect the entire experience.”
The pictures shown here are from a media demo, with the first rendition of the auction happening on July 18 2023. Dickson plans to hold them every fortnight. As for bidders, Dickson claims there are “over 100 car dealers” listed in their inventory. Only dealers registered with the company are eligible to participate. Unfortunately, this system is only B2B for now, with no indication of whether Dickson will eventually open it up to B2C customers.
Whatever the outcome, innovations like this are an interesting way to spice up the used car market in Singapore.