They are auctions that sell cars which suffered some form of damage. Damage can be different. Many used cars on the market, which are now running the roads and bring smiles to their owners, also had that damage but they were sold after they were rebuilt. Remember how We told you about the difference between going to a boutique designer store and a department store? The price.
Same with car repairs. Imagine you wanted to buy a used car from the owner who did not know about the “department stores” and fixed his car at some overpriced “boutique” repair shop.
The result? His used car purchase price is higher than it could have been if you bought it from him with the damage and took it to “the guy you know who always gives you a good deal.” Salvage cars can have a completely different level of damage. It can be some basic mechanical issues or just some body damage.
The point is that it is all fixable. Basically, when a car gets into some form of an accident or gets flooded, an appraiser comes and calculates part by part how much value the car has lost. However, the appraisal is based on the original factory-based rates for that specific brand, which are often very high.
Also, there is specific labor repair time and OEM (not auto market or used) parts in each certified collision repair facility, and it is also included in that estimate. In addition, in terms of the legal aspects of the appraisal, it is safer to claim that something is not working rather than stating that it does.