The São Paulo government had suspended the competitions due to non-compliance with current legislation
The government of the State of São Paulo has resumed, with new rules, car auctions DMV-SP (São Paulo State Department of Transit). The auctions were suspended since May of last year, for a general review of the processes and correction of irregularities. Today, there are 140 thousand vehicles, accumulated over the last 20 years, to be auctioned.
The first auction that marked the recovery was held in Botucatu, in the interior of São Paulo, in July. The auction ended with almost 100% of the cars in roadworthy condition sold. The total amount raised was approximately R$1.7 million. Another 3 auctions were held in August in the cities of Cerquilho, Capela do Alto and Cesário Lange. According to the government, all the lots were sold and paid for. The proceeds totaled almost R$576 thousand.
The next auction is scheduled for September 12, in Bragança Paulista. The cities of Itapecerica da Serra and Caieiras are also expected to hold auctions, although the date has not yet been set.
“Changes to auction rules have brought greater security. All procedures are audited by the State Comptroller General’s Office, with interaction between Detran-SP, the auctioneer and the yard itself.”, explains Heitor Frozel, yard and auction manager.
What has changed in car auctions
In May 2023, Detran-SP decided to suspend the auctions after finding discrepancies with the legislation. A practice previously adopted was to deposit the funds raised from the auction into the auctioneers’ bank accounts. The legislation, however, prohibits this practice. According to the law, all funds raised from the public auction must be deposited into a public account, at the agency holding the auction.
“The biggest benefit is that we are strictly complying with the legislation, bringing a smooth, transparent flow and, of course, strengthening the procedures.”, reinforces Frozel. “We had several state control bodies involved, precisely to bring all applicable legislation into the flow. We spoke with the Attorney General’s Office, with the Comptroller General’s Office, with the State Commercial Board itself, Jucespto design a new auction flow that is closely compliant with the legislation.”
Among the state agencies involved in the new auction model is IfFaz (Secretariat of Finance), which works together with Detran-SP to issue the Dare (State Revenue Collection Document).
Previously, payment was made by the successful bidder to the auction company involved in the event, which was responsible for paying all expenses. By simplifying the process and eliminating an intermediary, the agency now has better visibility and management power over the amounts.
Modalities
Each auction has 3 types of cars that can be sold:
- those that are preserved and can be circulated again;
- those that are considered usable scrap, whose parts are destined for dismantling companies for sale; and
- and irreversible scrap, which goes to steel mills and foundries, where the vehicles are compacted into metal bales to be melted.
Specifically in the irreversible scrap modality, only approved companies in the steel and foundry industry can participate. In other words, they must be legal and accredited companies. In the circulation modality, participation is permitted for both individuals and legal entities.
There is a clause that prohibits the participation of people who:
- are related up to the 2nd degree to people who work for Detran-SP;
- work for auction companies;
- work in auction companies; and
- work in the yard.
Visit to the courtyards
Cars collected in yards by Detran-SP, DER (Department of Highways and Roads) and city halls can be seen up close in the 2 business days prior to the opening of the auction for pre-bids. Contact with the cars, scrap and ferrous materials is only visual, without handling, touching or any type of testing.
Before the auction, it is possible to place pre-bids. The participant suggests a price for a car, which will be converted into a bid at the beginning of the public session and, if it is not surpassed within 30 seconds, the participant will automatically become the winner of the auction and purchaser of the unit. The pre-bid must be higher than the appraisal value.
It is worth noting that, even if a pre-bid has been made, the owner of the vehicle listed for auction has the right to recover it up to 1 business day before the auction. To do so, he/she must pay any outstanding debts, such as fines and removal and custody fees, as per the resolution 623 of 2016of the Contran (National Traffic Council).
With information from SP Agency.
#Find #DetranSP #vehicle #auctions
