There's really no great mystery about why people get excited when they find a way to save money when buying things they need.

And, with high-priced ticket items like cars, even saving only 5% can mean saving thousands of rands.

One of the best ways to enjoy huge savings, in the region of 20% to 50%, is to attend a car auction. This is where you can get really good deals on repossessed cars.

By following a few tips from an experienced auction buyer, you can reduce your chances of getting burned at auctions...

Tip # 1: Heavy competitive bidding will drive the prices of the cars up. This could result in the final price exceeding the actual value of the vehicle!

To avoid this, do some homework about the car you want to buy. Look at the various prices available and understand the auction process by attending a couple before you start bidding.

Tip # 2: You won't be able to test drive the car before you bid for it...

Read reviews on various makes and models, find out what the trade-in value is and check for recalls. Once you've narrowed your search down to a few makes and models, visit a dealership and test drive them, before you bid at an auction.

Tip # 3: All used vehicles are sold voetstoets and don't carry a warranty or guarantee....

Also, if you get the winning bid, you cannot return the car as all sales are absolutely final. So, it's a good idea to take a mechanic, or someone that knows about cars, with you. Let them quickly evaluate the car you're interested in and give you advice.

What to look out for when buying a car...

1. Look at the car's exterior. If the paint is new, ask when the car was painted. This could indicate a problem such as underlying rust.

Scan the underside othe car for rust. Also check the bumpers and wheel wells for any signs of rust or body filler.

2. Inspect the car thoroughly for any signs of body repair. This could tell you if the car has been in an accident.

Look for inconsistencies like: Do the edges of the bonnet and door panels line up with the fenders and other side panels? And does the frame look aligned correctly?

3. Look inside. Check the interior for tears in the upholstery and sun damage.

4. Check the engine's overall cleanliness. Look for rust on the exhaust manifold and oil leaks around the valve cover and head gasket.

5. Check the oil on the dipstick by rubbing it against your thumb (make sure the engine is cool). If you feel small particles in the oil, the engine may be worn or have other problems.

6. Start up the engine. It should start straight away.

7. Take the car for a test drive. Check the brakes. They shouldn't squeal and should bring the car to a stop in a sufficiently short distance.

8. Test the transmission. Set the emergency brake, press the clutch pedal and shift through the gears. There shouldn't be any grinding sounds.

9. Ask to see a record of the car's maintenance. Look to see that the car had regular oil changes and services.

In the name of wealth and wisdom,
 

Pascale Barrow
Managing Editor of Personal & Finance Confidential