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Get helpful tips about auto cars – Auto insurance companies sell cars!
What? It’s true. Insurance companies do sell cars — salvage cars.
However the cars they sell are those that have been wrecked, weather damaged, or stolen, meaning that the insured owners of those vehicles have been paid by the insurance company after the vehicles have been declared total losses. The company attempts to recover some of its money by selling the vehicles, usually at salvage auction through an insurance salvage auction company.
Bargains at salvage auctions
It is possible to find outstanding bargains and relatively cheap cars by knowing how insurance salvage auctions work and where to find them. In many cases the cars are in great shape and need little or no repairs.
Examples
A large car dealer in Texas had most of his new cars partially under water during a recent flood. The dealer’s insurance company decided to declare all of the cars as total losses and paid the dealer. The insurance company then became the owner of the cars, some with major water damage and some with almost no damage. The company will sell the cars at auction with salvage titles. Smart buyers can pick up the cars, often at bargain prices, and repair them to resell or drive as their personal cars.
Another example: An insurance company’s customer had his new car stolen. The police were unsuccessful in locating the vehicle. The insurance company paid the customer the cash value of the car. A few months later, the car was recovered, in good shape, and the thief was arrested. However, the car, with a salvage title, now belonged to the insurance company who now wanted to recover some of its money by selling the vehicle at salvage auction, or to a broker who would then resell the car.
How it works
Companies such as Insurance Auto Auctions, Inc. (IAA) buy totaled and recovered-theft vehicles from insurance companies and auctions them to rebuilders, used-car dealers, parts dealers, and the public. Most of the vehicles are total-loss vehicles, meaning it would cost insurance companies more to repair them than to sell for salvage. Others are vehicles that were stolen but recovered after the insurer had settled the claim. Vehicles come from major insurers such as Allstate and State Farm.
Example salvage auction vehicles
Here’s a small sample of salvage vehicles in the New Jersey area to be auctioned by a national insurance auction company:
2002 HONDA CIVIC on sale now at our branch in Northern New Jersey SALE DOCUMENT: NJ-SALVAGE DAMAGE: FLOOD ODOMETER: 32463 (ACTUAL) VIN: 2HGES26722H000000
2006 HONDA ACCORD on sale now at our branch in Northern New Jersey SALE DOCUMENT: NY-MV-907A DAMAGE: FLOOD ODOMETER: 2500 (NOT ACTUAL) VIN: 1HGCM56496A000000
2004 JEEP GRAND CHEROKEE on sale now at our branch in Northern New Jersey SALE DOCUMENT: NJ-SALVAGE DAMAGE: FLOOD ODOMETER: 46469 (ACTUAL) VIN: 1J4GW48S04C000000
Where to buy salvage and theft-recovered vehicles
Insurance auctions and salvage vehicle auctions are held almost every day at various locations around the country. National companies such as IAA, ADESA, and Salvage Direct conduct the auctions at auction sites that are typically located in or near large cities. Many auction companies are local or regional, such as Auto Salvage Auctions, Inc, in Michigan and Midway Auto Salvage Auctions in Arkansas and Mississippi.
As this was being written, IAA was preparing to auction over 50 premium theft-recovered vehicles in Phoenix the next day. Other large auctions can occur soon after large weather disasters.
Online salvage and theft-recovered auctions
The easiest way to participate in an insurance salvage auction is online, on the Internet. Most of the auction companies already mentioned above have an online bidding process. You’ll find rules and procedures for how to participate right on the website.
You can also check the eBay Motors web site and search for “salvage” or “totaled” vehicle auctions.
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