Car Salvage Auctions - Insurance Auctions

Find bargains at salvage car auctions by insurance companies

Did you know that auto insurance companies buy and sell cars? It's true.

However the cars they buy and sell are those that have been wrecked, flooded, or stolen, meaning that the insured owners of those vehicles have been paid by the insurance company after the vehicles have been declared total losses (totaled). The insurance companies then own the cars and want to get rid of them.

Many cars have only hail damage, minor water damage, or have been recovered from thieves undamaged — but are considered "totaled."

Car insurance companies sell "total-loss" vehicles through auto salvage auction companies. Buyers at these auctions can be dealers, individuals, or rebuilders — all looking for bargain prices.

Bargains at salvage car auctions
It is possible to find outstanding bargains and relatively cheap cars by knowing how insurance auto salvage auctions work and where to find them. In many cases the cars are in great shape and need little or no repairs. Salvage, flood vehicles, and totaled cars can often make great project cars.

Examples
A large car dealer in Arkansas had most of his new cars partially under water during a recent flood. The dealer's insurance company decided to declare all of the cars as total losses and paid the dealer. The insurance company then became the owner of the cars, some with major flood water damage and some with almost no damage. The company will sell the cars at auction with salvage titles. Smart buyers can pick up the cars, often at bargain prices, and repair them to resell or drive as their personal cars. In some cases of "flooded" cars, a simple easy clean-up is all that is required.

Another example: An insurance company's customer had his new car stolen. The police were unsuccessful in locating the vehicle. The insurance company paid the customer the cash value of the car. A few months later, the car was recovered, in good shape, and the thief was arrested. However, the car, with a salvage title, now belonged to the insurance company who wanted to recover some of its money by selling the vehicle at salvage auction, or to a broker who would then resell the car.

How it works
Companies such as Insurance Auto Auctions, Inc. (IAA) buy totaled, flooded, and recovered-theft vehicles from insurance companies and auctions them to rebuilders, used-car dealers, parts dealers, and the public. Most of the vehicles are total-loss vehicles, meaning it would cost insurance companies more to repair them than to sell for salvage. Others are vehicles that were stolen but recovered after the insurer had settled the claim. Vehicles come from major insurers such as Allstate and State Farm.

“OMG!!!!! I didn't know about this way to find cheap cars until I found this article. I just got a near-perfect-condition theft-recovered white Mercedes C280 for $3500 less than Kelley Blue Book value at a local auction. Thank you. Thank you. Thank you."

Example salvage auction vehicles
Here's a small sample of salvage vehicles in the New Jersey area that were recently auctioned by a national insurance auction company:

2002 HONDA CIVIC on sale now at our branch in Northern New Jersey
SALE DOCUMENT: NJ-SALVAGE
DAMAGE: FLOOD
ODOMETER: 32463 (ACTUAL)
VIN: 2HGES26722H000000

2006 HONDA ACCORD on sale now at our branch in Northern New Jersey
SALE DOCUMENT: NY-MV-907A
DAMAGE: FLOOD
ODOMETER: 2500 (NOT ACTUAL)
VIN: 1HGCM56496A000000

2004 JEEP GRAND CHEROKEE on sale now at our branch in Northern New Jersey
SALE DOCUMENT: NJ-SALVAGE
DAMAGE: FLOOD
ODOMETER: 46469 (ACTUAL)
VIN: 1J4GW48S04C000000

2004 MAZDA 3 on sale now at our branch in Northern New Jersey
SALE DOCUMENT: NJ-SALVAGE
DAMAGE: FLOOD
ODOMETER: 60864 (ACTUAL)
VIN: JM1BK143241000000

2006 MERCEDES-BENZ C230 GEN 2006 on sale now at our branch in Northern New Jersey
SALE DOCUMENT: PA-SALVAGE
DAMAGE: FLOOD
ODOMETER: 15000 (INOPERABLE DIGITAL DASH)
VIN: WDBRF52HX6F000000

2006 MERCEDES-BENZ C280 GEN 2006 on sale now at our branch in Northern New Jersey
SALE DOCUMENT: PA-SALVAGE
DAMAGE: FLOOD
ODOMETER: 20396 (ACTUAL)
VIN: WDBRF92H36F000000

1999 NISSAN MAXIMA on sale now at our branch in Northern New Jersey
SALE DOCUMENT: NJ-SALVAGE
DAMAGE: FLOOD
ODOMETER: 139180 (ACTUAL)
VIN: JN1CA21AXXT000000

Where to buy salvage, flooded, and theft-recovered vehicles
Insurance car auctions and salvage vehicle auctions are held almost every day at various locations around the country. National companies such as IAA conduct auctions at sites that are typically located in or near large cities around the country. Many auction companies are local or regional, such as Auto Salvage Auctions, Inc, in Michigan and Midway Auto Salvage Auctions in Arkansas and Mississippi. You can find auctions in your area advertised in newspapers and local magazines. You can also search the web for auction companies and schedules.

Online salvage and theft-recovered auctions
The easiest way to participate in an insurance salvage auction is online, on the Internet. Many auto salvage auction companies have web sites and offer an online bidding process. You'll find rules and procedures for how to participate right on the website.

Be aware that some auctions are open only to dealers. Others allow non-dealers to bid — or have both dealer and non-dealer auctions on different days.

Summary
Salvage cars, flood-damaged, and totaled cars for sale from salvage auctions and insurance auctions are good sources of cheap cars if you know how and where to look, and know how to participate.

Salvage cars make good project cars for people who enjoy rebuilding and restoring vehicles.

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