Salvage Car Auctions - Insurance Auctions - Theft Recovered Vehicles

Auto insurance companies buy and sell cars? It's true. However the cars are those that have been wrecked, weather damaged, 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. The company attempts to recover some of its money by selling the vehicles, usually at salvage auction through an insurance auction company.

It is possible to find outstanding bargains and relatively cheap cars by knowing how insurance salvage auctions work and where to find them. In many cases the vehicles may need little or no repairs.

Examples
For example, a car dealer in Texas 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 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.

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 now wanted to recover some of its money by selling the vehicle at auction, or to a broker who would then resell the car.

How it works
Companies such as Insurance Auto Auctions, Inc. (IAA) buy totaled 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.

Example salvage auction vehicles
Here's a small sample of salvage vehicles in the New Jersey area to be 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

2000 NISSAN ALTIMA on sale now at our branch in Northern New Jersey
SALE DOCUMENT: PA-SALVAGE
DAMAGE: FLOOD
ODOMETER: 36000 (INOPERABLE DIGITAL DASH)
VIN: 1N4DL01D8YC000000

2000 SAAB 93 on sale now at our branch in Northern New Jersey
SALE DOCUMENT: NJ-SALVAGE
DAMAGE: FLOOD
ODOMETER: 81168 (ACTUAL)
VIN: YS3DD55H3Y2000000

Where to buy salvage and theft-recovered vehicles
Insurance auctions and salvage vehicle auctions are held almost every day at various locations around the country. National companies such as IAA, ADESA, and Salvage Direct conduct the auctions at auction sites that are typically located in or near large cities. Many auction companies are local or regional, such as Auto Salvage Auctions, Inc, in Michigan and Midway Auto Salvage Auctions in Arkansas and Mississippi.

As this was being written, IAA was preparing to auction over 50 premium theft-recovered vehicles in Phoenix the next day. Other large auctions can occur soon after large weather disasters.

Online salvage and theft-recovered auctions
The easiest way to participate in a salvage auction is online, on the Internet. Most of the auction companies already mentioned above have an online bidding process.

The most popular online auction source of salvaged and damaged vehicles is eBay Motors. Go the Motors home page and search using one or more of the following terms: "salvage", "damaged", or "wrecked" (without the quotes).

At the time of this writing, there were at least 500 vehicles (including some motorcycles, trucks, and other) in this category. It's a great way to pick up a bargain-priced car that can be easily repaired. Be sure to follow eBay's guidelines and facilities for protecting yourself if you decide to bid. And don't get caught up in the bidding excitement and end up paying more than you should.

Related Articles
Also see our other articles, Damaged Cars- Salvage Cars,   and   Repairable Wrecked Cars for additional information. Also see our article,  Free Cars - Fact or Fiction?   as well as   Government Seized Car Auctions   and Repossessed Car Auctions.

For more, see LeaseGuide.com