How to Buy Salvage Cars at Copart and IAAI [Salvage Auto Auctions] the Autohacker’s Way
Last edit: January 18 2024 • 780 view
What’s up, Autohackers?! Andrew “Autohacker” Ivanov is here with CARS4.BID and today I will walk you through the process I use to buy salvage cars at salvage auto auction (Copart and IAAI).
The best part of it? I do it from the comfort of my own home, I do not have to leave my house! I can identify most pitfalls just looking at the computer monitor, so if you are ready, let’s virtually inspect a 2020 Mercedes-Benz G63 that’s available for sale at IAAI with a Buy It Now price of $129,000.
As I always preach we will concentrate on 6 main parts of salvage car secrets, as explained in my previous post here, to do a virtual inspection and see whether $129,000 price is justified.
1. Check Seller
Using CARS4.BID website it is extremely simple to check the seller. In this case it highlighted in green, and next to Insurance label I can see its name – Progressive Insurance. Progressive is a big reputable company, so everything should be good with this step. Let’s move forward.
2. Check Damages
The G63 AMG comes with primary damage, which is Theft recovery. This is my favorite type of damage. You get a lot of car for the money. The secondary damage is front-end damage. I do see the Mercedes-Benz logo missing, which is not a big issue, and I can definitely fix it later.
3. Check Documents
It shows a clean title, which is very positive, but highlighted in orange at CARS4.BID, so I should pay extra attention to it. There’s a note from insurance stating “PREV SALVAGE DUE TO THEFT PER AUTOCHEK.” This is not a good sign.
If it had a previous salvage title, it’s not considered a clean title; in Florida, it’s a Rebuilt title, and in other states like California, it’s a Salvage title. I’m checking VIN.DOCTOR for this particular VIN WDCYC7HJ1LX337928 to see if there’s a salvage disposition there, and indeed, it shows a salvage disposition from April 12th, 2020:
4. Check Location [How to Buy Salvage Cars]
Using a simple built-in calculator at CARS4.BID, for every car, I can easily calculate the delivery fee. This car is located in Clearwater, Florida, and the delivery price is estimated at $650 for an SUV.
5. Know the Final Price [How to Buy Salvage Cars]
This is where it gets interesting. Since we buy a car at salvage auto auctions, we are looking to save money, right?! If there are no savings, what’s the point of buying it at Copart or IAAI? It’s much easier and hassle-free to go to retail and pay retail prices!
We are Autohackers here, so our main concern is to get the killer deal!
At CARS4.BID, we’ve done most of the analysis for you, and every car has a pricing analysis:
It shows the retail price (provided by the auction) and our Bid to win estimation.
This car is estimated at $129,000 with a 29% discount (clean title (+10% value) and premium brand (+10% value)).
Though, I always verify the retail price. Always! Insurance can salvage a car months ago, and prices can drop significantly.
So, I am going to cars.com to see the current retail prices for this G63. I would need the exact year, make, model, trim, mileage, and colors. The retail market value for a car with this mileage (54,000 miles) is between $140,000 to $160,000, depending on condition and options.
This is $30,000 to $40,000 cheaper than the retail price provided by the auction.
Taking this into consideration, the Bid to win estimate should be updated to just $91,500.
This is CRAZY, Andrew! They advertise this car at $129,000 when retail car is a mere $10,000 more.
I know, this is harsh truth, my fellow Autohacker!
Even insurance companies at salvage auto auctions want to rob you.
If you do not do your homework, you could be easily taken for a ride at the salvage auto auction. I am here to protect you and equip you with the right knowledge, so you are prepared.
6. Details [How to Buy Salvage Cars]
Devil is in details! Let’s examine the final part of my virtual inspection.
To be honest, I do not like what I see. It’s not great at all. Look at the seats; it’s as if the car has 500,000 miles on it! You also need to replace the windshield, logo, and who knows what else. I carefully examined the windshield and there is a writings on the windshield that says “TOTAL”, meaning “Total loss car/Salvage”.
Conclusion [How to Buy Salvage Cars]
$129,000 Buy It Now? I’ll pass, clowns!
It is not a clean title, it does not retail at $179,846, and it has additional damage.
The interior condition is horrible.
I would not buy it even for $100,000!
But you know the funniest part in it?!
Seller didn’t even let it go at the last auction when the highest bid was $111,000 – which is a fantastic price for car in such condition. By the way, you can use free VIN.DOCTOR block at CARS4.BID to see how many previous sales were there at the auction:
When you buy it you can see the final price of the previous auction:
It even shows the last data from the eBay, it was listed for sale in 2019 (5 years ago) at the price of $168,595.
So, who is bidding $111,000 or even might buy it at $129,000?!
Buyers who have no idea how to buy cars at salvage auto auctions. Sellers know the market and they target overseas buyers from Armenia, Georgia, Azerbaijan, UAE, Oman, where prices are much higher, and it still makes sense to buy cars at this price.
Autohacker community
Buying damaged cars at insurance auctions needs careful attention and a good eye for detail. Looking at the example of the 2020 Mercedes-Benz G63, it’s really important to research sellers, check title information, compare asking prices, and look at how good or bad the vehicle’s condition is.
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!
