Insurance Vehicle Auction Differences
Everyday thousands of vehicles are sold online through real time insurance auctions across America and at an average cost per vehicle that is below a commercial wholesale dealer level. CarTruckCheap.com offers our clients the opportunity to purchase a vehicle at hundreds to thousands of dollars less then the "ACV or Actual Cash Value" by bidding in a closed to the public insurance auction at an equal wholesale level just like a commercial dealer.
Regular vehicle auctions online are generally closed to the public but held two to three days a week and the available inventory can vary from 100 to 300 vehicles that are all sold "AS IS" with no warranties honored. 90% of the regular car auction inventory is supplied by car dealer trade-ins, lease terminations, fleet trade-ins or repossessions that generally have high mileage, excessive wear and tear and no true vehicle history (a typical used car). A "Car Fax" or other reporting agency only tells you that the vehicle has or has not been in a accident but doesn't tell you if the vehicle has excessive mileage, electrical or mechanical problems, paint or coating issues and so on.
Insurance vehicle auctions online are closed to the public but held every business day Monday through Friday and outnumber regular vehicle auctions 3 to 1. The available inventory at an insurance auction can vary from 200 vehicles to over 1000 inventory items generally averaging about 500 vehicles per auction depending on the state it is being conducted in. Insurance auction inventory is generated from accident claims, bank repossessions, insurance trade-outs, company bankruptcies, insurance leans and court forced auctions.
Though like the regular vehicle auctions, all the insurance auctions cars are sold "AS IS" but the big difference is that every insurance auction car goes through a through analogized inspection by an insurance adjuster who determines the real "ACV" of the vehicle and an estimate of the damage if any. If the insurance adjusters determines that the vehicle condition or damage if any, is more then 70% of the "ACV", it is will send the car to the salvage auction.
Important note; finding an under-valued vehicle in a insurance auction is common because the older the car is with only minimal damage, the combination will push it into the 70% assessment range, because as the car devalues because of age, the repair cost increases for the same reason. This is especially true for light body and paint repair damages. Another tip to remember is that for the last 15 years lower cost after market replacement parts (bumpers, fenders, hoods, etc.) are manufactured in plastic and carbonate materials the same way that the auto manufacturers have been doing to keep cost and weight down for years. This makes repairs easy and inexpensive and some states don't require non-safety repairs be completed first before the vehicle can be re-titled, insured and licensed to drive. Check with your state's DMV for salvage vehicle details.
Car dealers know and now through CartruckCheap.com you will know that most insurance damage estimates are inflated sometimes to as much as 100%. What this means is that most insurance auction vehicles were privately owned and no more then 10 years old, with most averaging 2 to 3 years old with low mileage and wear and tear. The insurance auction vehicle is general believed to be a in a overall better condition then a regular auction vehicle and the mileage is generally very low in comparison to dealer trade-ins and dealer lease terminations and has been maintained in an every day operational condition by their former owners.
This is the reason that the majority of bidding participants in insurance vehicle auctions every week are car dealers, re-builders, commercial resellers, exporters and CarTruckCheap.com clients.