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Nairaland Forum / Nairaland / General / Car Talk / ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** (18476 Views)
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***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 12:51pm On Jun 20, 2013 |
Preamble: Several companies and individuals here on NL have been actively encouraging Nigerians to bid on cars at US auctions. They make it sound very easy and painless. While bidding is easy, there are numerous pitfalls along the way which these companies do not disclose until it is too late. The purpose of this thread is to prevent you from falling into such pitfalls. On a recent trip to Nigeria, a number of friends and acquaintances came to me with one request – “Please help us buy good quality salvage cars from the US”. I politely told them I will not be able to help since I do not go to salvage auctions and know absolutely nothing about them. In fact, I attended my one and only salvage auction at Brandywine back in 1998. They pressed on and asked me to research the business when I get back. After I got back, I forgot all about it until they started calling and asking how far I had gone with my research. Soon after, I joined the major salvage auction companies here and commenced the research. After a week, I felt I was ready and told them so. They wired money for the purchases and told me what they wanted. Without going into all the intricacies of salvage auctions, I will like to say the following: 1. Bidding on a car at salvage auctions is quite easy. In fact you can bid from the comfort of your own home in Lagos. All you need is a computer and internet access. But don’t let that fool you. Before you bid, you must have somebody on the ground in the US who will help you in completing the transaction. If not, you may end up paying hundreds of dollars in storage and late fees. For instance, if you win a car at Copart, you have 2 days to make full payment. Penalties will start accruing if full payment is not made within that time. Also you have 4 days to remove the car from their premises once the auction ends. After 4 days, they will start charging a $20 storage fee per day. 2. Do not let the low selling prices fool you also. Remember, after you win a car, the auction company will add all kinds of fees and commissions to the final price. For instance, a car that you bought for $1500 will end up costing you almost $1900 after all the fees and commissions are added. If you fail to pay within 2 days or remove the car within 4 days, the final figure will be much higher than $1900. 3. Before you bid on car, do proper research and verify that it runs and drives. This is very important since most of the major shipping lines in the US no longer accept non-running vehicles (unless you put them in a container). I have talked to Grimaldi, AES and Sallaum and they all said the same thing, “No”. 4. All cars at salvage auctions are not equal. Most are in horrible condition while a few are in excellent or close to excellent shape. The important thing is to take the time and find those in excellent shape. When you find one, don’t expect to get it at a rock bottom price as many people will most likely be bidding on it too. With proper research, you too can get good quality cars from salvage auction. Remember to read each auction’s FAQ and ask plenty of questions. Happy Bidding. Important: Some people who bought cars from Nigeria without proper research have been forced to abandon them here in the US when the cost got out of hand. For instance, those that bought non-running cars had them rejected at the Port. They were then left at the shipping company’s parking premises where they accumulated hundreds of dollars in storage fees and eventually abandoned. Also, if you buy a severely damaged car, it may be rejected at the Port even if it runs and drives. 2 Likes |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by symbianDON(m): 10:24pm On Jun 20, 2013 |
nice one. Quite informative. Thanks. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 1:28am On Jun 22, 2013 |
It appears one week is not enough to learn the intricacies of salvage auctions. I have now encountered 2 big problems on 2 of the 4 cars I bought for somebody. We are still looking for ways to resolve the problems...will provide more details later. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 5:51pm On Jun 22, 2013 |
Problem 1: Do not buy a car at salvage auction based solely on appearance. I bought the sparkling Toyota Camry Tiny Light below because it was super clean in and out. When I went to pick it up, I discovered to my dismay that it wouldn't start. Granted it may be a minor problem but this means that I have to ship it on a container since it doesn't drive. The owner doesn't want to fix it here since American mechanics are too expensive. I think he made the right decision (most mechanics here will charge 70 - $100 just to tell you what's wrong with your car). The moral of the story is: Do not buy any car from salvage auction unless it clearly states "Runs and Drives". If it simply states "Engine Start", do not buy it. It will not drive and shipping companies will not accept it for RORO. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by ikedek: 9:35pm On Jun 22, 2013 |
Thanks for the infos Can u let us have some salvage auction websites? |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 11:05pm On Jun 22, 2013 |
ikedek: Thanks for the infos The popular salvage auctions here include Copart.com, iaai.com and exporttrader.com. I am using the term "salvage auction" loosely as some of them sell both clean and salvage cars. Copart appears to be the easiest to deal with. The others have too many requirements and restrictions especially if you do not have a dealer license. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by ikedek: 10:01am On Jun 23, 2013 |
Thanks for ur reply Are u based in the Us? If yes what state? |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 1:11pm On Jun 23, 2013 |
ikedek: Thanks for ur reply I'm in the East Coast. This thread is mainly for educational purposes. So I will not discuss business matters here. If you need help buying or shipping a car from the US or if you encountered problems with a car you already bought at auction, contact me at [email]BizMotors@aol.com[/email] I may be able to assist you. 1 Like |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by Nobody: 1:50pm On Jun 23, 2013 |
Copart is good, I've been a registered member since 2007, and purchased quite a lot from them on behalf of my clients. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by FindOut(m): 2:07pm On Jun 23, 2013 |
Very good thread. Bizbooks, I'm currently working on an article on buying salvage cars from the US. Do I have your permission to use some of the info you have provided as part of the article? It will be on this website: www.autoinfo.com.ng Thanks. 1 Like |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 2:26pm On Jun 23, 2013 |
@Find Out, Yes, you are free to use some or all of the information without attribution. 4 Likes |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by FindOut(m): 3:53pm On Jun 23, 2013 |
BizBooks: @Find Out, Thanks a lot . However, I shall still acknowledge you as a source |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by ikedek: 4:20pm On Jun 23, 2013 |
Ok Bizbooks I wil write you,thx |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 1:18pm On Jun 27, 2013 |
Mistake Number 2: I have talked about the first mistake I made at salvage auction wherein I bought a car based solely on appearance. Upon picking up the car, I discovered it wouldn't start even after it was jumped. The second mistake was buying a car without first verifying that the title is available. I have known for quite a long time never to buy a car if the title is not ready. Here in the US, a car is worthless without the title since you cannot ship, drive or register it. But in this instance, the folks at Copart were a little deceptive in their advertizing and still are. Instead of clearly stating that the title is not available, they wrote a "P" under the title column. When I saw the "P", I did not pay much attention to it. After I purchased the car, Copart then told me that the "P" means "Title Pending" and that the seller has up to 30 days to send it. To make matters worse, they insisted that I pick up the car within 4 days or else it will incur storage fees. In my opinion this is very mean-spirited on their part since they know that a buyer cannot do anything with a car without the title. Now instead of taking the car directly to the Port, I had to park it somewhere while we wait for the title. When and if the title ever becomes available, I have to pay the tow truck driver a second time to take the car to the Port. So if you are trying to buy a car on Copart and see something like this: Title State/Type: CERTIFICATE OF TITLE (P), do not buy that car. That (P) means "Pending". However, if you decide to buy a car with a "Pending Title", make sure you have a place where the car will be kept while you wait for the title. Copart will not allow you to keep it on their premises even though they know you cannot ship it without the title. 4 Likes |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by EvilSirit: 4:05am On Jun 28, 2013 |
BizBooks: Mistake Number 2: I have talked about the first mistake I made at salvage auction wherein IThanks for the insight 1 Like |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by calculusx(m): 6:05pm On Jun 30, 2013 |
Bizbooks, there are too many things to learn when buying from salvage auction. With my 5yrs experience,i'm still learning. Sales Tax is another thing to look out for as Tax Laws differs for each state. I bet you will enjoy iaai more than copart. Happy Bidding 1 Like |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 7:19pm On Jun 30, 2013 |
calculusx: Sales Tax is another thing to look out for as Tax Laws differs for each state. Sales Tax? Copart does not charge sales tax. So far, I have purchased 4 cars from them and was not charged sales tax for any of them. Do they charge sales tax at iaai? |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by calculusx(m): 8:31pm On Jun 30, 2013 |
BizBooks: Yes they do and the Tax can be double in some states. I will advise you try iaai cos they provide more details about their vehicles. As for Copart,hhmm i have my reservations for them |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by bellong: 8:51am On Jul 02, 2013 |
calculusx: You will only be charged a sales tax if you didn't submit tax forms. They have some tax exemption forms on their website which are expected to be submitted before an out of state buyer can be exempted. IAAI too has those forms. Fill the forms and send to customer service, follow it up with a call and your registration will be updated. You will be exempted from the tax. Maybe you were charged because you didn't submit the forms. IAAI and Copart to me are the same. salvage autos, I am registered on both. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by calculusx(m): 9:03am On Jul 02, 2013 |
bellong: Thanks bro. Its part of the learning process. 1 Like |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by bellong: 9:08am On Jul 02, 2013 |
calculusx: Welcome sire.... I know the address of your office.. Grew up in that area. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by Emperoh(m): 4:54pm On Jul 02, 2013 |
I have never paid sales tax on any purchase. Maybe because i have always rented a licence to be able to buy. As per which is better between IAA and Copart; i can't say. Like Bellong, i use both and it is dependent on where i get a good deal. Cars on Copart are cleared to view in terms of picture quality than IAA but IAA gives you more details in terms of situation. Whichever way, i ensure i do my due diligence before i bid. I also prefer to buy cars with Insurance companies as seller than private individuals. All in all, i have been on this business for about 4 years now and i am still learning |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by TopeFl(m): 6:06am On Jul 03, 2013 |
One Copart location is right behind my house here in Gibsonton (12020 U.S. 301 Riverview, FL 33578)They do not charge taxes. You have to have a broker to register you for a certain amount to be able to buy cars. Each car u buy, u would pay the broker and also Copart fees. I walk into the copart grounds to check the cars out then go back home and bid online when its 12pm on friday (thats the sale time for this location). I buy often from there per demand from Naija brothers. I can be of help to anyone interested. I might be there again this week. tip2datop@yahoo.com www.folatopeautos.com |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by BizBooks(m): 10:55am On Jul 03, 2013 |
@Tope Fl, You're right. Copart does not charge sales tax. I think Calculusx is confusing their commission with sales tax. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by lotannam: 6:40pm On Jul 03, 2013 |
Please can someone tell me how much coport charges as commission.as in the % |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by bellong: 7:45pm On Jul 03, 2013 |
lotannam: Please can someone tell me how much coport charges as commission.as in the % The commission is not in percentage but in ranges of price paid. U can get the list on their website |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by famousdude: 5:42pm On Jul 06, 2013 |
Please,how much does it take to rent a car for a day? |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by FKBZ: 5:07pm On Jul 10, 2013 |
hello guys would love to get a car from salvage auction saw some for below 1000 dollars and wont mind getting it but i want to know what it takes to ship to nigeria. if there is anyone out dere dat can purchase one of me and i do the payment. pls holla. based in nigeria though. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by bellong: 5:17pm On Jul 10, 2013 |
FKBZ: hello guys would love to get a car from salvage auction saw some for below 1000 dollars and wont mind getting it but i want to know what it takes to ship to nigeria. Depends on the level of damage you are looking at. Are they runners or non-runners? If they are non-runners, they will have to be containerised. Which of the auctions are you interested in? A running vehicle can be shipped via ro-ro provided the accident is not beyond what the shipping company can accept. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by Dizzybizzy: 1:47pm On Jul 13, 2013 |
BizBooks: Problem 1: Do not buy a car at salvage auction based solely on appearance. I bought theI bought a similar vehicle from Copart 5 weeks ago. It was clearly stated "Run and Drive" Unfortunately when the truck driver went to the yard, he discovered the vehicle doesn't even start. He bought a new battery and fixed and yet it didn't start. Now I'm forced to accept the vehicle in that condition because "all sales are final and "as is, "where is". Sometimes the information on auction websites are incorrect and misleading. So even with several years of experience one could fall victim. |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by Opiosko: 12:19pm On Jul 14, 2013 |
Suscribed |
Re: ***You Can Actually Get A Cheap, Good Car At Salvage Auction*** by calculusx(m): 7:13pm On Jul 14, 2013 |
Dizzybizzy: GBAM!!!! On Point. Especially Copart 2 Likes |
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