How Does a Salvage Car Auction Work: What Do I Need to Know?

Auto buyers who aren’t afraid of repairs and are looking for an incredible deal should look into salvage car auctions. Such auctions provide the savvy consumer with the opportunity to purchase a vehicle at an incredible discount — sometimes up to 70 or even 80 percent!

In order to participate in a salvage car auction, though, there are a few things that you’ll need to know. Below, we’re going to explain how you can participate in a salvage car auction, as well what you’ll need to know when participating in one.

Can I Participate in a Local Salvage Car Auction?

In most states across the country, only individuals and businesses with dealer licenses will be able to participate in salvage car auctions. However, this doesn’t preclude you from participating yourself!

In order to take part in a local salvage car auction, you’ll typically need to work with a broker. This broker will have a dealer license that allows him or her to participate in the auction on your behalf, and he or she can assist you with everything from vehicle inspections to bidding strategy.

Why You Should Use Online Car Auctions to Find Salvage Vehicles

While it is possible to participate in local auctions through a broker in your area, there’s a much better way to dive into the salvage car market. Online car auction sites provide users with access to salvage auctions taking place all across the country. Because of this, you’ll have access to a much broader inventory than you might otherwise, making it easy to find the car you want at a price that’s going to make sense.

How an Online Car Auction for Salvage Vehicle Works

In order to participate in an online car auction for salvage vehicles, there are a few things you’ll need to do first. Most importantly, you’ll need to make a deposit that establishes your bidding power. In most cases, your deposit will represent 10% of your total bidding power. So, if you were to make an initial deposit of $250, then you would be permitted to bid up to $2,500 on a salvage vehicle.

Once you’re set with your deposit, you can then begin the process of looking for salvage vehicles upon which you’d like to bid. As you look, be sure that you’re paying attention to vital information like vehicle history reports and insurance repair estimates. These should help you to establish what the full cost of the salvage vehicle will be, and not just the bidding price.

As you look, you may also wish to work with the agent or broker who’s been assigned to you. He or she will have access to a deeper database of salvage vehicles than what can be shown publicly on the online car auction’s website. Because of this, you’ll be able to gain access to an even wider database of salvage vehicles, making it even more likely that you’ll be able to get an incredible deal on the vehicles in which you’re interested.