Before you decide to purchase a salvaged vehicle, there are a few things you should understand. Such cars come to most online car auctions from insurance companies because of multiple reasons. It could be because the vehicle has been damaged or has mechanical issues that the company does not deem profitable to fix. They then try to sell the vehicle to the highest bidder on an online auction. Now at this point you must be wondering why would anyone even bid on a vehicle that a insurance company decided to sell? The answer is fairly simple.
Insurance companies have no interest in repairing a vehicle that for instance has bumper and hood damage , even though all it would take to fix such issues are a new bumper, hood, grille and potentially the cars radiator and headlights. It is easier for the insurance company to forget about this damaged vehicle, sell it, and move on with purchasing a new car. In most cases small car dealers tend to buy such vehicles off these insurance companies, fix them up in under a week, and back they go to the consumer market. These small dealers profit off the fact that these so called “salvaged” cars are damaged, because they are auctioned at very low prices. After fixing a vehicle up, the dealer is left with a 15% to 40% profit margin, depending on the vehicles model, mileage and the year it was manufactured.
As more and more people learn about online salvaged car auctions, there has been a growing demand for individuals to participate in such auctions. Most big online car auctions such as Copart and IAAI only let you place bids on vehicles if you have a US dealers license. That automatically prohibits non-licensed individuals to take part in these auctions. With Salvagebid.com you gain access to all the vehicles that can be found on iaai.com, one of the most trusted and reliable online car auctions in the United States. Salvagebid helps thousands of people on a daily basis bid and save money when purchasing salvaged vehicles.
The biggest positive aspect of purchasing a salvaged vehicle is the fact that you can save a big amount of money. Yes, the vehicle will be slightly damaged, but if you sit down and do the math on how much it would cost you fix it up, you will see how much money you are saving. Do not forget to always check the vehicle’s history via its VIN number. There are many different services out there that for a small fee will show you all the damages your vehicle has received over the years.