Online Salvage Auctions Gain More Popularity
As the wounds of the recession are still ripe, people are still hesitant to spend on anything else other than essentials. Needless to say that buying a luxury car is a distant dream. However salvage cars have given a ray of hope to many. Buying a salvage vehicle gives an opportunity to own a luxury car, that too at a much lesser price. A salvage car auction can be a perfect place to find the car of your dreams. Apart from the affordability factor, these auctions give you the luxury to find all the cars at one place and bidding and payment also happens at the same place.
What are salvage cars?
A salvage car is one whose repair cost is more than the value of the car itself. It can be damaged in the floods or other natural disasters or involved in collisions or other accidents. The cars that have been stolen or lost, but later recovered, also fall into the same category. Apart from these, the cars that have been repossessed by a financial institution can also get the salvage title. Though these cars are badly damaged, buyers get a chance to inspect and check all potential vehicles before they place a bid at a car auction site. This would also help the buyers to be aware of the condition of the vehicle, like the salvage Kawasaki ZX600P that they are bidding for.
The internet has become a good parking place for these car sales advertisements. They are easily accessible and they have a wide reach, unlike the ads published in the newspaper or local directory. This is why many companies have started utilizing this platform. A buyer simply needs to have a keen eye on the upcoming auctions and the variety of cars on display. Even live auction options give a feel of the real auction scene where alertness is the key. These online auction websites also provide you with the option of a dealer participating in the bidding process on your behalf.
To participate in bidding, you first need to register with the online auction portal. You should get a preferred membership where you would be able to buy an unlimited number of vehicles. Or else, you can get a starter membership which allows you to bid on only one vehicle at a time. After the registration is done, you would be required to deposit a refundable security amount. The membership would be activated only after the deposit amount is submitted. For online auctions, you would have two options: Preliminary Bidding and Live Auctions. In the Preliminary Bidding, you can submit your bid 24 hours a day, whereas a Live Auction enables you to submit your bid in real time. On winning the auction, payments are made through bank wire transfer. As soon as the payment is made and acknowledged, the shipping process is started. Such online firms help bidders in transporting the vehicle to the destination. The process is quite easy and simple. Still many people get hassled by the whole process. There are many buyers who are still doubtful about these car auctions, probably because they have some misconceptions.
- Impossible to insure a salvage car: This view mostly keeps the buyers away from such salvage auctions. Since salvage cars are very cheap, the owners generally don't bother about insuring the vehicles. However many companies offer liability insurance in place of collision or comprehensive coverage. Such offers only encourage people to opt for salvage insurance. These options also help the owners against a possible lawsuit in case of a collision.
- Vehicles are totally damaged: Unlike the popular view, many of the cars available on the online auction sites are not completely damaged. Though collision and flood damaged cars require huge repairs, insurance salvage cars are in fairly good condition. These vehicles require little to moderate repair.
Not only are these auctions safe and secure, but companies are also adapting to newer technologies to keep themselves abreast of the latest advancements. These auction houses are recognizing the needs of a digital society.
More reliance on digital methods
The salvage auction business has been a lot more sophisticated than rolling auctions as far as technology is concerned. There is a difference between the two auction types. In salvage auctions most vehicles are not fit for driving and have salvage certificates. Such vehicles are mostly sold for recycling and parts. On the other hand, rolling auctions also classify vehicles as salvage but most of these vehicles are repairable and have clean titles.
Many of the auction houses dealing with such vehicles heavily depend on the internet. "The internet is the driving force of everything we do and a major portion of what we sell is online. Even our live auction sales are completely online," said Jerry Sullivan, Executive Vice President of QCSA Holdings. People are extremely technology savvy and this is driving their online business. Sales over the internet are made a lot quickly than what happens with the traditional methods.
Since the last two decades, tremendous efforts are being made to reduce labor costs and improve data accuracy. For that, an incredible amount of progress has been at the technology level. Much stress is given on accuracy and this only can be the key to the future. In case of salvage auction websites, reliability is the key factor. With increased reliability of information, more vehicles are being sold and purchased online as compared to the physical auction lanes. With better quality images, certification programs and better arbitration policies, buyers are relaxed about their online purchases. Although physical auctions are still thriving they also give direction to the online auction trend.