Salvage market booms amid economic strain

Rising vehicle and spares costs are driving a sharp increase in salvage auctions where garages, enthusiasts and parts merchants bid to buy vehicles at a fraction of retail cost.

- Citizen reporter

While the popularity of these types of auctions is filled with opportunities for buyers, it is also important to note the ins and outs of the business and to seek out trustworthy and reputable auctioneers who work within the boundaries of the law and are members of the industry's official professional body, the South African Institute of Auctioneers (SAIA).

Gert Labuschagne, chief operations officer for and long-standing member of SAIA at auction company GoBid, says salvage auctions focus on selling vehicles deemed uneconomical to repair by insurers.

Vehicles classified as "salvage" are not necessarily beyond repair; instead, the classification often results from the combined costs of repairs, car rental and related claim expenses exceeding the vehicle's post-repair value. Once these vehicles are repaired to meet roadworthy standards, they may be returned to use.

Salvage auctions serve a critical role in the insurance and financial ecosystem by helping recover value from vehicles deemed uneconomical to repair and reducing fraud through regulated channels.