Understand Auto Salvage Auctions:
Thorough understanding of what a “salvage title” means. A car with salvage title falls under premature end of life vehicles. A car with a salvage title is either involved in an accident, theft, or have experienced natural calamity. These cars are termed as "total loss" by insurance companies and are not allowed to run on road until they are repaired and re-titled.
- Identify reliable registered brokers to participate in an auto auction. Participants do not need Dealer License to participate in preliminary bidding. The registered brokers represent the registered members during live auction. The brokers advise on buying and bidding and offer assistance in terms of shipping, inspection and repair.
- Collect information about a salvage vehicle with respect to history, Vehicle Identification Number, source of salvage title, odometer readings to name a few.
- Once you have enough information, make arrangements required for buying a car with a salvage title. These cars are not allowed to run on road. So, a buyer has to make arrangements to transport the car to another location. The vehicles have to be repaired to get a new title. Once you buy a salvage car, get the car repaired so that it is functional and safe on road. The car has to pass an inspection test, to receive a "rebuilt" title from the Department of Motor Vehicles.
- Consult insurance companies for insurance quotes on a rebuilt title car. Most of the insurance companies do not provide full coverage insurance for salvage title vehicles.
- Interested bidders can refer to the National Motor Vehicle Title Information System (NMVTIS), which is an electronic system that provides information about a vehicle's condition and history to the customers. People can get information on vehicle's title, odometer reading and historical theft data.
How to Bid in an Auto Salvage Auction...
Interested candidates can register with a registered broker and pay a security deposit to participate in preliminary bidding. Before the live auction, preliminary bidding is conducted. A bidder has to enter the maximum bid amount that he/she is ready to pay for a vehicle. The bid amount will not be the purchase value of the car. The highest bidder will be represented in the live auto auction by the registered broker. A bidder can also place a bid during online auction, after preliminary bidding process ends.