The Automobile Association (AA) has unveiled AA Autobay, an online marketplace where people can buy, sell, finance and insure pre-owned vehicles, privately.
The pilot phase was launched on 1 November and the service will be rolled out nationally from the first quarter of 2007, the association says.
As part of its stock acquisition drive, AA Autobay invites sellers to log onto its Web site to register their cars, says AA Autobay COO Stephen de Blanche.
For a vehicle to be sold through AA Autobay, it has to undergo a quality check at a participating AA Test & Drive centre, which costs R379, he says.
This is done to allow the buyer to establish the quality and condition of the vehicle before deciding whether to test-drive it. AA Autobay will also ensure vehicles are not stolen, previously written off or re-builds, he adds.
De Blanche notes that once tested, a comprehensive report will be produced and if the vehicle meets the AA's minimum criteria, it will be photographed and advertised on the Web site with the report and pictures.
The seller will set the asking price, he adds.
The buying process
The Web site is expected to assume full functionality on the 9 November, with buyers able to search for vehicles, make an offer to purchase and apply for finance and insurance, De Blanche says.
In addition to the R379 fee for the quality check, the buyer and seller are each charged 2% on the sale price. The fee is paid only if a deal is concluded, he adds.
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 take the risk out of the payment process, De Blanche explains.
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, De Blanche explains.
The company also provides finance for both new and pre-owned cars, regardless of whether they have been sourced through the AA Autobay marketplace, provided they conform to its minimum standards, he adds.
De Blanche notes that the service is not restricted to people with Internet access.
"Potential sellers and buyers can go to an AA Autobay centre, where business advisors can help them view cars."
AA Autobay also has a call centre to help buyers and sellers navigate their way through the process, he says.
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