Salvage Sales - Insurance Auctions
Cheap cars can often be found in unlikely places. One example is the case of cars that have been "totaled" by insurance companies. These are cars that have been declared total losses because of accident damage, acts of nature (storms, floods, etc.), or theft-recovered vehicles. The owners have been paid off and the vehicles now belong to the insurance company, who tries to recover some of their money by having the vehicles sold at auction or salvage sale.
You may ask, "Why would I want to buy a 'totaled' vehicle?"
The answer is: All "totaled" vehicles are not actually "totaled." Sure, some are one step away from the junk yard. But others can be in good or near-perfect condition. Let's look at a couple of examples.
A new-car dealer has been the victim of a flood. His new-car lot was under water for a couple of days. His insurance company inspects some of the cars and finds heavy water damage and declares the whole lot of cars as total losses — even though some of the cars actually have little or no damage. It's too much trouble to inspect every car. All of the cars will be sold at auction by the insurance company, or by a professional auction company hired by the insurance company – or by a salvage vehicle sales broker. The undamaged cars will be great bargains for savvy buyers.
Another example: An insurance company's customer's car is stolen. The police can't find it. The insurance company pays the customer for the car. A few months later, the car is recovered, unharmed. It now belongs to the insurance company, who then put it up for auction or salvage sale. Yes, it's "totaled" but in great condition. It will make a good cheap car for the right buyer at an insurance salvage auction.
Here's an article that provides much more detail: Salvage Car Auctions | Insurance Auctions.
