The automotive world hides many opportunities, some of which have already become apparent for a wider circle of people. Needless to say, they’re in for the money, as the U.S. automotive aftermarket was worth approximately 212 billion U.S. dollars in 2019. No wonder more individuals are turning their heads towards crashed car listings than ever before.
Need proof about the potential of this market? Some of the biggest salvage auto auction companies in the U.S. are going nuts. Their market value has skyrocketed in the past few years, and they are happy to report that the average value of the salvaged vehicles they sell is approximately 40% higher than it used to be in 2017, for example. Now, that’s impressive! It also indicates the increasingly higher interest buyers have in salvage cars for sale.
There Will Be More Salvage Cars for Sale in 2020 Than Ever Before
Here is another important factor contributing to the salvage vehicles market growth: international buyers. With online auctions becoming a standard service and considering the fact that insurance companies are writing off cars more than ever before, it is no surprise that the market is growing faster than expected.
Plus, there are newer cars with less damage available. This means that people are not looking to buy salvage cars just for the parts or their scrap value, which leads us to another important factor that we will mention below.
Where Do Most Auctioned Crashed Cars for Sale Come From?
Auto repair services have reached whopping price levels, which has some expected consequences. Insurance companies, for instance, now find it easier to compensate their clients for the damage and send the vehicle off to an auction company instead of paying big bucks for repairing it.
This might appear as strange at first, but it is all a matter of calculation. The increase in the number of total losses has been on the rise in the past few years. In 2019 alone, it grew with another 20%. The more vehicles end up as write-offs, the more popular salvage cars auctions will become in the future.
What Are the Basics of Buying Salvage Vehicles?
If you have yet to participate in an auto auction, you need to know what to look out for and how to plan your purchase. First of all, you must understand that many others will have the same intentions to buy salvaged cars, meaning that there will be a lot of competition, especially when it comes to the most attractive listings. Experienced bidders know a good deal when they see it, and they act fast.
Let’s assume you are into cars and know what to look for in a vehicle. Great opportunities lie ahead of everyone who dares to enter an auto auction, as there are many cars in relatively good shape between the wrecks, and they are often extremely reasonably priced.
This is what you need to aim for. Of course, the type of damage matters and that is the first thing you should check when you set eyes on a particular salvage car for sale.
Check If the Price Is Right and Don’t Be Emotional About It
People are sometimes overwhelmed when they come across a vehicle they really want to buy, but emotions have nothing to do with striking a good deal at an auto auction.
Even if you want to bid, make sure you know if it is worth it. Check the average price of the vehicle type, model, and trim level, and compare the mileage and the overall condition to other cars on the market. Set the average price to be your limit. If you exceed it when bidding, chances are you will not make a good deal.
Be Aware of Why the Crashed Car Has a Salvage Title
Not all crashed cars listed for sale are equal in terms of the effort they would require to be put back on the road. If you are interested in buying a salvage vehicle for dismantling, you would like to know if there are enough good bits left on it. However, if you want to buy a crashed car and repair it, you must be aware of its specific condition, down to the last detail…and what does it mean when a car has a salvage title in the first place.
There are cases when a car ends up as a total loss despite it starts and drives. There is a huge possibility that the crashed vehicle you want to purchase has suffered structural damage that would cost far too much for the repair to be considered a reasonable expense. A flooded vehicle might look like it has suffered no damage at all after being washed and cleaned, but the mechanical and electrical damage it would likely have can be unimaginable.
Make Sure You Calculate All Export and Repair Costs
Here is an additional note: a total loss could mean that the salvaged car for sale was previously stolen and eventually recovered by the police. This is a tricky scenario, as one could never be sure what had been done to the car while in possession of the thieves; not to mention that these cars are almost always returned to the insurance company with no keys and they’re sold as stationery at the auto auctions later.
When you intend to export a salvage vehicle, you must calculate the cost of transportation, shipping, taxes, VAT, and the above-mentioned repair costs. This will help you determine whether the crashed car for sale is worth it at all, despite the seemingly tempting fixed price or its expected value after bidding.
Know When You Need to Stop Bidding
Just like in many other life situations, the most important thing to know about bidding is to know when to stop. Apart from the emotional side of things we already discussed, people are sometimes tempted to continue bidding only for the sport of it.
However, this is the kind of winning situation you don’t want to be in, as you might end up paying far more than what the car is worth. Setting a budget is key, and having the right idea about the real worth of the particular crashed car for sale is equally important.
Trust a Dealer With Bidding on Your Behalf
This is the kind of advice that is valuable for both newbies in the salvage auto auction world and experienced traders. Having someone to guide you can be essential for making the best purchase. Third-party consultants and dealers can always give you the best advice for any particular scenario: they will make sure you don’t pay too much and will tell you to walk away from a crashed vehicle that seems to be an attractive offer but it’s actually not.
There are one too many scammers involved in this business. They buy severely damaged cars from insurance companies and quickly fix them up. The vehicle ends up being auctioned, but most bidders would never suspect that it barely holds itself together. The scammers make a hefty profit, using this scheme and paying for the services of an experienced dealer will most likely save you from being the victim.
That’s what Bid Export is good at – giving you the chance to find the best salvage cars for sale.
You only need to register and get the car you always wanted.
