Insurance auto auctions
Insurance auto auctions are also known as Salvage Auto Auctions. Salvage auctions are all together a different ball game from public, wholesale or government auctions. In fact these auctions are not open to the public. Not everyone can attend them. Salvage auto auctions usually have cars that are extremely damaged. These cars were salvaged and restored, probably, after a major accident. Hence, only an expert could understand the intricacies involved. That is the primary reason why the general public is not allowed here.
So where do salvage cars come from Say, your car was involved in a major accident and if the damage is estimated to be more than 75% of the car's value, then the law necessitates the insurance company to brand it as totaled in wreck. Of course, each state has its own laws. But this is a general practice in most States. If you ever run a Vehicle History Report on a salvaged car, the report will show that the car was salvaged and rebuilt. It may also show it as passing through a salvage auction. This is how you catch people trying to sell illegally a salvaged car as a regular used car. When you buy a car at a salvage auction, you are totally exposed and on your own. You know the car is damaged, you just don't know what it will take to get it working again. Many don't care; they just want the car for spare parts.
Once the wrecked has been branded as totaled, it is sent off to an auto salvage yard. These yards hold salvage auto auctions once in a while. One can bid on cars available at the yard.
How much should you pay?
Several people don't really mind buying a damaged car as for the most part, it is OK. But many more are justly suspicious. There is always a possibility of something still being wrong with the car. For instance, the airbags, probably are missing and so on. So researching honest dealers is important. Also, remember that the cost of salvaged cars usually range from 20% to 40% of the original value.
Always have an inspection company look at the salvaged car after you buy it. This is very important. The inspector will help find out everything that is still wrong with this car so that you can have it fixed.
Often, most dealers won't tell you that the car was salvaged. And do not comfort yourself with the warranty either as it could be voided. There are disadvantages of buying salvaged or rebuilt cars. Warranty is voided on rebuilt or salvaged cars. Also, banks will not finance such cars. It's also hard to find an insurer for a salvaged car.
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