Insurance Auto Auctions – The Basics

One of the best ways to save cash when purchasing cars is through insurance auto auctions. This is the ideal way if you want to avoid paying the commissions of dealers (who are actually just middle men) and pay only for what the car is worth. Through this method, you can dramatically reduce the price by as much as 50% to 70% lesser than the original market value of a vehicle.

The items that are sold in insurance auto auctions are those vehicles that have been salvaged from people who have defaulted in a certain way. This happens when an insurer decides that the vehicle in their possession is no longer of use for the insurer and that it is best if it is sold or auctioned. However, this does not mean that they are no longer drivable or repairable. It only means that the amount of repair for the incurred damage is equal to or greater than the amount that the insurer is willing to release to the owner. So, in a way, you can assume that they are more willing to earn a little profit from its sale rather than to have the vehicle fixed.

Although insurance auto auctions are not so profitable for the financial institutions, this is actually good news for you. While they are trying to get rid of a burden, you are benefiting from it because you can now purchase your dream automobile at a relatively low price. The only thing that is left for you to do is to have it repaired and this is indeed still cheaper than having to buy a brand new one or even slightly used vehicles.

This scheme is very common lately and you cannot blame the people who take advantage of this very great opportunity. And because of its popularity, even other financial institutions want to benefit from it. When a salvaged car is sold, some of the insurers would naturally want to obtain some rights even to a very minimal percentage of the process. Whether it is wrong or right for them to take advantage of this situation, this scheme is commonly practiced nowadays and many companies and individuals are making good use of this opportunity.

However, before you decide to purchase anything, it is necessary that you seek the advice of a mechanic to guide you in your buying decisions. Insurance auto auctions are a great way to get your dream automobile but it is essential that you inspect everything to make sure that you get your money’s worth.

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