Auction sites for automobiles have been consistently growing in popularity over the past few years. Slap on a looming global pandemic, and more people are now turning to insurance auto auctions online than ever before. There are several reasons folks prefer to take part in car auctions online as opposed to making the physical trip to the auction lot.
First of all, the prices of new cars have dramatically increased over the past few years, which means many people who are on a budget simply cannot afford to pay top dollar for a new car, especially when it is possible to get a good deal at an online auction or insurance auto auctions. Another reason why using an insurance auto auction is a great idea is because modern automobiles tend to last a decade or more if they are maintained well. This works well for those looking to purchase a car at insurance auto auctions, mainly because these auctions also have relatively new vehicles and are not seriously damaged in their inventory.
This is exactly why the use of online auctions has increased significantly, and as the prices of new cars rise, this trend isn’t going to slow down any time soon. So, what are insurance auto auctions, and more importantly, how do they work?
How Do Insurance Auto Auctions Work?
Many people may be familiar with automobile auctions in general, as in, they tend to keep used vehicles that can be snagged at a bargain price. However, insurance auto auctions, whether they are online or at a physical location, tend to sell vehicles such as cars, off-road vehicles such as trucks, minivans, sedans, and hatchbacks that have mainly been damaged, hence the name, insurance auto auctions.
The vehicles that are found in the inventory at insurance auto auctions tend to be damaged due to theft or roadside accidents. You can also find many vehicles that have been damaged due to natural disasters such as floods, tornadoes or fires. However, it is important to note that not all of the vehicles that are on the insurance car auctions’ inventory are completely totaled. This gives folks who are on a budget the chance to find an affordable vehicle that works and isn’t too old.
It is common to find vehicles at insurance auto auctions that have simply been repossessed due to default payments. And the good news is that since these auctions tend to acquire a high volume of repossessed vehicles from various insurance companies, there is no shortage of choices for potential car owners. In other words, you will be spoilt for choice when it comes to selecting a vehicle at any insurance auto auction.
Another common sight at such auctions is those automobiles that had previously been fleet leased. When the company goes out of business, its entire fleet of vehicles ends up for auction. You can also find fleet leased vehicles that are in the insurance auto auction simply because they reached a certain mileage. And while many vehicles in this category tend to show visible signs of wear and tear, there are many others that are without a scratch and can be yours at a much lower price tag as compared to a spanking new car of the same brand, year, and model.
Who Can Attend Insurance Auto Auctions?
Contrary to popular belief, you are not required to buy in bulk when at an insurance auto auction online. In fact, there are many different types of buyers that are attracted to this particular type of auto auction, from auto dealerships to exporters, small businesses to private individuals (that’s you) who frequent insurance auto auctions in an attempt to find their dream car at a good bargain. While large exporters or dealerships usually qualify by having a license to take part in insurance auto auctions, it is common for individual buyers to also take part in such auctions via an authorized online broker that has the relevant license.
It is possible to take advantage of dealer trade-ins at such auctions as well, provided the other vehicle is in good shape. While some vehicles tend to be in bad shape, you can always find others that work perfectly fine except for some nicks and scratches to the exterior. These dealer trade-in opportunities can enable you to find a vehicle that looks great and can perform at an optimal level for several years to come, giving you the most bang for your buck.
Insurance Auto Auctions are Legit
As the auto industry introduces more technologies and laws, it has become standard for auto auctions to include all of the necessary information regarding all of the vehicles in their inventory, and the same goes for insurance auto auctions as well. This means the complete history of the vehicle needs to be documented along with its current condition, along with information of any parts or components that have been replaced (or need to be replaced). There are also third-party inspection services to ensure that inexperienced buyers aren’t duped into investing in a melon at the auction.
Be Wary of Catastrophic Wrecks
While insurance auto auctions do have some almost-new vehicles in their inventory that aren’t seriously damaged or require extensive repair work, it is advised to steer clear from flood-damaged automobiles. This is especially true during hurricane season, where insurance adjusters tend to write off a high number of vehicles in those areas that are ravaged by floods or tornadoes. These vehicles tend to be sold as salvage, whereas some may try to resell them to inexperienced buyers by not sharing with them the right documentation. While online insurance auto auctions have vehicles of all types and physical conditions in their inventory, it is best to keep a watchful eye for those catastrophic wrecks that sneak into the auction.
Find a Bargain
At the end of the day, one of the main reasons why more and more folks are turning towards insurance auto auctions (or any online auto auction for that matter) is mainly because they have a chance of getting a vehicle that isn’t that old and performs well at the lowest possible price. Insurance auto auctions are also a smart option for those discerning buyers who are not interested in carrying out any maintenance or repair work once they drive the car out of the auction lot.
One of the many reasons why folks turn to online auctions or insurance auto auctions is mainly because of the significant increase in the useful life of a car. Back in the day, one would not expect a car to last or perform well for more than a few years. Fast forward to today, and thanks to automobile manufacturers pushing the envelope in terms of technologies and materials used during the automobile manufacturing process, cars are expected to last far longer even after being in an accident or after going through major mechanical work.
This makes insurance auto auctions one of the best platforms where those on a budget can find an automobile that would go at least 100,000 miles (or more) without any major issue. And, since it is an insurance auto auction, you’re probably going to get a close-to-new ride at a bargain. If you are interested in taking part in insurance auto auctions, or automobile auctions in general, then platforms such as RideSafely.com come highly recommended.
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