Factors of determining car auction prices in Saudi Arabia

In traditional car auctions, participants gather at a designated venue where companies or event organizers showcase their cars. Bidders compete until the highest price is achieved, transferring ownership to the new buyer after full payment is made.

A more modern approach has emerged with the rise of online auctions, which have gained considerable traction in Saudi Arabia. Typically, participants register on the organizer’s website, where event details, including the number and types of cars available, are provided.

In sealed-bid online auctions, participants submit individual bids without knowing their competitors' offers. After the auction ends, winners are notified to arrange payment, delivery, and transfer of ownership. Lumi, a notable company in this space, specializes in selling used cars through this format.

How do car prices get determined in online auctions?

Several key factors influence car pricing at auctions, and understanding them is essential for bidders aiming to set a reasonable price. Among the most important are:

• Car type: cars from reputable manufacturers generally attract higher demand, often resulting in a higher price.
• Car age: understanding the car’s year of manufacture is critical. Newer models typically feature advanced technologies, which drive up their market value.
• Car specifications: the car’s features, especially advanced ones like safety systems and display screens, play a key role in price determination. The more sophisticated the features, the higher the car’s value. Lumi, for example, allows customers to personally inspect the cars featured in its weekly auctions in its showrooms, helping them make more informed decisions before participating.
• Usage history: for used cars, usage history and mileage are decisive factors. As expected, lower mileage typically leads to higher bids.
• Overall condition: the car’s condition, both inside and out, along with its accident and maintenance history, directly influences buyer interest. Well-maintained cars often spark more competitive bidding.
• Personal budget: bidders should remain cautious of exceeding their budget, as enthusiasm can lead to overbidding. Staying within financial limits is crucial to avoid straining other commitments.

Everything you need to know about joining Lumi used car auction

Lumi stands as the leading car rental company in Saudi Arabia. Each week, it hosts a sealed-bid online auction, offering a varied selection of cars for sale. This helps refresh its fleet while providing clients with the latest models for rent.

Joining Lumi's auctions involves a few key steps. Participants must first register on the Lumi auctions homepage, providing essential details such as personal information and phone numbers for individuals or commercial registration numbers for company representatives. A SAR 5,000 security deposit is required, along with the submission of the transfer receipt to Lumi. Once these details are reviewed, Lumi’s team activates the account within 48 hours, providing access to the auctions.

For individual participants, an ID number is mandatory. Company representatives must submit the commercial registration (CR) number, expiration date of the CR, VAT registration number (if applicable), and ID number.