What SA’s ratings downgrade means for the auction industry
Johannesburg, 14 June 2017: South Africa’s auctioneering market is poised for a shift as auctions grow in popularity over traditional retail sales platforms against a backdrop of credit ratings downgrades and news that the country has slipped into a recession. While there is a lag effect in the impact of the country’s downgraded status by international agencies, South Africans can expect the maturing auction sector to expand as an accelerated sales platform option. This is according to Fanie Bielderman of Aucor, South Africa’s oldest and largest multi-asset auctioneer.
Economists are predicting greater pressure for consumers if credit becomes more expensive, but given that interest rates have not changed since the downgrade announcements, Aucor has not yet seen a surge in assets available for disposal. In fact, stock levels have remained fairly consistent.
“We believe that a greater range and scope of assets will become available on auction as companies and individuals adapt to changing market conditions. In addition, we are seeing a surge in number of people attending vehicle auctions looking for value purchases – a trend which we predict will translate into greater numbers of qualified and cash buyers at auctions,” says Bielderman.