6 Steps to Buy Salvage Cars at Copart, IAAI
Last edit: January 17 2024 • 852 view
Reading time: 5 minutes
TL/DR
Before purchasing cars at salvage auto auctions to ensure you avoid bad deals and secure great ones, follow these six easy-to-follow steps. First, thoroughly check the seller. Next, opt for vehicles with manageable damages to minimize repairs. Verify all documents meticulously to avoid legal issues down the line. Assess the location of the auction to anticipate potential logistic route and cost. Calculate the final price, factoring in all expenses such as repairs and transportation. Lastly, pay close attention to details during the inspection process to avoid overlooking crucial aspects of the vehicle’s condition.
Introduction
Whether you’re new to buying a salvage car or an experienced Autohacker, I’m glad you’re here. My name is Andrew “Autohacker” Ivanov, and I’m the main Autohacker in charge at CARS4.BID! I’ve been involved in buying salvage cars since 2002, and I just can’t quit. It is that addictive. I’ve made my fair share of mistakes, lost money, but in the end, I’ve mastered the game. Now my goal is to share my knowledge with you and grow my company, CARS4.BID, into the #1 broker in the USA.
If you haven’t gone through my full mini-course yet, please do so it will show you in 40 minutes how to buy salvage cars the right way. Otherwise, I’ve decided to gather the main points in this post to get you started as quick as possible.
There are six easy steps I follow myself before I bid on a car at salvage auto auctions.
1. Buy Seller
You buy the seller first. At CARS4.BID, we highlight sellers in various colors. Green is good, yellow is caution, red is to avoid.
When you’re new, dealing with insurance companies is the best choice when buying salvage cars.
If seller is a dealer be extremely cautious. About 99% of them having potential issues. You might encounter problems such as a dead engine, broken transmission, missing airbags or expensive computer parts, frame damage, and many other hidden damages. You can read more about dealer owned cars at salvage auto auctions here.
Though if you are experienced enough in buying salvage cars, you can get great deals from dealers as well, but you need to inspect the salvage car and understand the pricing. Some dealers sell cars much cheaper than they acquired them for, but it is a higher risk. I have a detailed blog post here about how to buy from dealers here.
2. Good Car Damages
If you’re new to salvage auto auctions, stay away from any salvage cars with damages other than theft recoveries, vandalism, and hail.
Minor front-end damage could hide more extensive damages behind the plastic, and you might not see them. There’s a reason the car ended up at the salvage auction in the first place. If you want to learn more, there’s an advanced course where I dive into front-end damage, side damage, rear damage, and more. I owned a body shop, so I know a few secrets.
3. Check Documents
Every salvage title we mark as green at CARS4.BID. There is a reason for that, 80% of all cars at salvage auto auctions are salvage! So if you see salvage title – it is a green light from us and you can buy this salvage car!
Clean titles though can be misleading at salvage car auctions. Therefore we mark it as orange:
Let me explain why.
You might buy a clean title at salvage auto auction, but when you go to register it, you end up with a salvage title. You like – WHAT?! It is a SCAM! I want my money back. But it’s not a scam. Different states treat titles differently. Use VIN.DOCTOR to get a paid report and check for a salvage disposition record. It is under salvage records:
If it’s there, you’ll get a salvage/rebuilt title when you title it in another state even though you are buying a Clean title car.
Also avoid bill of sales, non-repairables, certificate of destruction, and junk titles. These are often for parts only and we highlight them in red.
4. Check Location
We highlight Alaska and Hawaii in red for a reason!
This reason is many people contact us for help moving salvage cars they bought from remote locations. Shipping a car from Hawaii to Los Angeles can cost about $2,000 plus ground shipping. Alaska is a seasonal destination, and if you buy it in winter, you likely won’t be able to recover it until May. Storage fees can be outrageous. We have an easy-to-use calculator on our website, so use it.
5. Know the Final Price
The bid at the auction is not the final price you pay for salvage car. There are auction fees, broker fees (if you use CARS4.BID, for example), and a delivery fee. These make up your final cost for the salvage car you buy. Additionally, you might need to do some repairs if needed, inspect the car, and register it. Ensure you have enough cash for these expenses.
6. Devil is in Details
Pay attention to details. Check window markings, the dashboard, and look for any warnings. Make sure that if it’s listed as “run and drive”, there’s proof that the car starts.
If the car is located at IAAI, take advantage of the handy video of the engine running. Simply click the button, watch, and listen to it. Sometimes, you may hear a distinctive ‘knock, knock, knock’ sound, indicating that the engine is at the end of its lifecycle. Other times, you may notice the absence of a catalytic converter in the engine sound.
Check whether title has ‘Title Pending’ status. In this case you might receive title within 4-6 weeks only. You won’t be able to register it or export during this time. Title might also include Liens on it, which sometimes is easy to remove, and sometimes liens stay forever.
There might be ‘Fees due to DMV‘ on some cars, so you need to understand who pays them.
Remember, devil is in details.
Overview
Salvage auto auctions are fantastic ways to save 50% on a salvage car you buy. There’s a minor learning curve, but you can master it in a little time. All you have to do is follow my six easy-to-follow steps. First, thoroughly check the seller. Next, opt for vehicles with manageable damages to minimize repairs. Verify all documents meticulously to avoid legal issues down the line. Assess the location of the auction to anticipate potential logistic route and cost. Calculate the final price, factoring in all expenses such as repairs and transportation. Lastly, pay close attention to details during the inspection process to avoid overlooking crucial aspects of the vehicle’s condition.
Autohacker’s Community
The best way to master it and avoid mistakes is by joining my free Autohacker’s facebook community. You gain access to the best supportive community out there with 500+ members and you get my free mini-course that can make you a PRO salvage buyer within one hour.
What are you waiting for?! JOIN NOW!
