What Happens At An Insurance Car Auction?

by Mark Vespario

Insurance auto auction usually sells vehicles, motorcycles, trucks and even boats that might have been damaged either through collision, flooding, fire, theft or subject to any other damage. Vehicles that have been repossessed due to default in payment by the owners may also be found at insurance auto auctions. The auctions are always likely to acquire their stock directly from various insurance companies in very large numbers so the buyers can always have plenty to choose from.

All kinds of buyers are always likely to be found at the auctions ranging from exporters to dealers and even small businesses that renovate and resale the bought vehicles. One can easily qualify for such auctions through license or registering with an authorized online broker. Because of this, it is always very easy to be a member of such auctions.

As opposed to the normal auctions where entry is restricted only to the registered members, salvage car auctions are always open to members of public. However, one can also become a member by registering with an authorized online broker. This is one of the benefits salvage car auctions.

Because the cars at the auctions always need to be sold very fast, the prices are likely to be very low. This gives the buyers opportunity to buy cars that may be in good condition at very competitive rate. Another reason why rates at the auctions are always likely to be very low is due to the belief that most vehicles sold through auctions are salvage vehicles.

Despite low prices of vehicles in this type of auctions, most sellers still prefer to sell their cars through it. This is basically because of the availability of ready market. This reduces the period one would need to wait for a buyer. The seller does not also need to advertise the cars for the buyers.

Going with the auctions also allows an individual to optimize means by which they can get the best possible returns. This will in away reduce the losses that they are likely to incur. Even if the selling price would be very low, it still reduces the amount of loss.

Due to increased competition among insurance companies, each insurance auto auction dealer would always want to attract and retain customers. Because of this, most of them usually offer to customers other services like transportation from salvation site to the place where auctions are to take place. Some of them also store these vehicles in their garages where mechanics can always attend to them.

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