What do you do when business is slow? Did you know there are thousands of cars auctioned daily? Purchasing cars that need repair could increase your revenue stream. Resell them at dealer auctions for profit the same day!
This is how it works:
When an insurance company “totals” a vehicle, they have to pay out the owner. But what happens to those vehicles?...Insurance companies auction off those cars everyday!
There are many dealer insurance auctions such as CoPart, IAAI, Total Resource, Salvage Direct and others where you can buy cars in need of repair. As a wholesaler dealer, you will be able to register your license and buy from any insurance auction. Licensees do not have to pay sales tax or register vehicles. Only pay for auction fees.
What kind of vehicles can be found at insurance auctions?
Anything from hail damage, flood, theft recovery, and vehicles that have been involved in collisions can be purchased at these dealer only auctions. All states have different rules and laws regarding how much damage a vehicle has to have to be considered “totaled.” Whether the car has a lot of damage or not, the insurance companies still have to pay for the claim. This is where you as a dealer license holder, can take advantage of these opportunities.
Did you know that some states total a car just because the air bags were deployed?!
Insurance auctions have great web sites with pictures and detailed information on these vehicles. They will even tell you what kind of condition the vehicle is in and whether or not it runs properly.
Just look on Ebay and type Salvage or Rebuild as the keyword. You will see that there are a lot of great cars being sold out there! Some of these vehicles have damage, and some will have already been fixed, but they all sell way under retail value. Making them very attractive for anyone to purchase.