AA launches private car sales channel

AA Autobay chief executive Ed Gassner explains, "Until now, there has been no real way of selling or financing a pre-owned vehicle privately. Even if you could find a buyer, the banks were reluctant to finance your purchase. As a result the motoring public has been forced to rely on trading-in their vehicles to motor dealerships. Yet, with new car prices under pressure, dealers are offering lower and lower prices on trade-ins."

"We all know how horrifying it is to discover that your vehicle is worth much less than you think it is - often way below the so-called book value and the outstanding finance on the vehicle. Something needed to be done and we believe AA Autobay is the answer. It is a safe new process that is going to revolutionise the pre-owned vehicle market."

Register cars

During the first week of the pilot, AA Autobay will be inviting sellers to log onto www.aaautobay.co.za to register their cars for sale as part of its stock acquisition strategy. Potential buyers will also be able browse on the portal, to whet their appetite ahead of the website assuming full functionality from 9 November. From next week, buyers will be able to search for vehicles, make an offer to purchase and apply for finance and insurance.

Stephen de Blanche, COO of AA Autobay, says, "AA Autobay operates by creating a web-based marketplace for buyers and sellers to list and view pre-owned vehicles."

"For a vehicle to be sold through AA Autobay, each vehicle will have to undergo a quality check at a participating AA Test & Drive centre before it can be listed on www.aaautobay.co.za. This is done for the benefit of the buyer, so that they will know the quality and condition of the vehicle before they even decide whether to test drive it or not. AA Autobay will also ensure that the vehicles are not stolen, previously written off or re-builds.

"Sellers can make a booking on our website, through our call centre, or go to a participating AA Test & Drive centre where we will have AA Autobay designated areas for them to talk to a business advisor. Once the vehicle has been tested, a comprehensive report on the vehicle will be produced and if the vehicle meets our minimum criteria, it will be photographed and advertised on www.aaautobay.co.za, with the report and pictures," says de Blanche. The asking price will be set by the seller.

Test drive

Once a potential buyer has registered with AA Autobay and identified a car they are interested in, AA Autobay will arrange a test drive within the safety of a convenient AA Test & Drive centre thus guaranteeing peace-of-mind for both parties. "AA Autobay will also provide additional security measures for the car before it is taken on a test driven to ensure the seller's safety," says de Blanche.

Once a price is agreed between the buyer and seller, AA Autobay will receive payment from the buyer and issue an AA Autobay cheque to the seller. This will ensure the risk is taken out of the payment process. AA Autobay will also facilitate the handing over of the car to the buyer, thereby protecting buyers from the possibility that sellers can abscond with their money - and their car.

"AA Autobay is also able to offer AA Finance as well as AA Insurance at highly competitive rates. Our intermediary-free model allows us to deliver 'fat free' deals that are not only excellent value for money but also completely transparent," says de Blanche.

"AA Autobay will finance both new and pre-owned cars regardless of whether they have been sourced through the AA Autobay marketplace - provided that they conform to our minimum standards that have been developed to protect the consumer."

Special requests

AA Autobay will transfer ownership from the seller to the buyer and assist with any special requests such as the fitting of accessories, personalised number plates and a host of other related services.

De Blanche says AA Autobay has tried to keep the cost of using the company to a minimum. "The only costs involved are the R379 fee for the comprehensive quality check at the AA Test & Drive centre and a 2% fee for each of the buyer and the seller on the sale price - only if a deal is concluded. If the seller's car is not sold there will be no cost other than the R379 they paid for the AA technical report."

De Blanche points out that while AA Autobay has created a virtual marketplace, it is certainly not restricted to those with internet access.

"Potential sellers and buyers can go to an AA Autobay centre where our business advisors can help our clients to view cars using our facilities. We also have a designated AA Autobay call centre to help clients to navigate their way through the entire process." The call centre number is 0861 22 22 29.