First, let us tell you what we do with salvage car auction. Don’t worry, no long biographies, dates and impossible to spell names. We will just share with you our purpose. You know how there are salvage car auctions? Back in the days they were only open to car dealers. Today they are open to public, but auctions still generally prefer to work with professional dealers because they have a license and a great deal of knowledge.
Therefore, we became the bridge between the salvage car auction and the public, and our blogs and FAQs are here to dissect the auction process step by step and to help you gain that knowledge that the auctions think you are missing.
You are probably thinking, “So? I always knew about the car auctions. My friend is a car dealer, he can help.” Right, but did your car dealer friend ever tell you about the salvage car auctions? Most likely no, because my dealer friend did not tell me.
What are salvage car auctions?
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.
When the insurance company assesses over 70% damage loss of a book value, it is considered a salvage car. Therefore, the car value is being significantly depreciated, when many of the vehicle parts can actually be working.