An insurance auto auction sells vehicles, motorcycles, trucks, and even boats that might have been damaged either through collision, flooding, fire, theft, or other accident. Vehicles that have been repossessed due to payment default by the owners are also sold at insurance auto auctions. These auctions acquire their stock directly from insurance companies- usually in very large numbers- so buyers often have plenty of vehicle from which to choose.
All kinds of buyers are likely to be found at auctions, ranging from exporters to dealers and even small businesses that renovate and resell vehicles. But that doesn’t mean that the average car buyer is excluded! On the contrary, you can qualify for these auctions by registering with an authorized online broker. You do not need a special credentials to participate in an insurance auto auction, although you may want to apply for vehicle wholesaler license if you plan to buy more than a few vehicles at auction.
Taking part in insurance auto auctions is likely to save buyers a lot of money since they can get the cars at greatly reduced prices. It is true that most vehicles sold through this method are salvaged, however, you may still be able to buy vehicles in good condition at reduced prices. It is worth noting that vehicles end up in auctions because they are written off by insurance policy providers, whether damaged or not. Vehicles recovered from theft are also likely to be found at indemnity vehicle auctions. Because of this, you can find vehicles with clean titles and in good working condition.
Insurance companies choose to sell vehicles at auction for the sheer speed of getting these distressed assets off of their balance sheets. There is no better way to get their property in front of lots of potential buyers than running an auction. And the insurance company knows that they are highly likely to reduce their incurred losses by selling the vehicles right away, even if it means reducing the prices through auctions.