A salvage auction is where insurance companies sell vehicles that have been declared a total loss. These cars were typically in accidents, floods, or other incidents where the repair cost exceeded a certain percentage of the vehicle's value (usually 70-80%). The two largest salvage auction houses in the US are Copart and IAAI (Insurance Auto Auctions Inc.).

Both Copart and IAAI allow the general public to bid, but with different membership tiers. Non-dealers (individuals) can bid but typically need to pay a registration fee and may be limited to bidding through a broker in some states. Licensed dealers get better fee structures and can bid directly. Some states require a dealer license to purchase salvage vehicles.

Both are major salvage auction platforms with similar inventory. Copart is the larger of the two with more locations nationwide. IAAI sometimes has better deals on certain vehicles due to less competition. Fee structures differ slightly between the two—our calculator accounts for these differences. Many serious buyers check both platforms for the best deals.

Yes! Both Copart and IAAI allow yard visits during business hours. You can physically inspect vehicles, check for damage, and sometimes even hear the engine run (if marked as "Run and Drive"). We highly recommend inspecting any vehicle you're serious about. Photos don't always show all damage, and hidden issues can destroy your profit margin.

A "pure sale" or "no minimum" auction means the vehicle sells to the highest bidder regardless of price. A "minimum bid" auction has a reserve price set by the seller—if bidding doesn't reach that amount, the seller can reject the highest bid. Pure sales are generally better opportunities since you know you'll win if you're the high bidder.

A salvage title is issued when an insurance company declares a vehicle a total loss. This means the cost to repair the vehicle exceeded a threshold (typically 70-80%) of its market value. Salvage title vehicles cannot be legally driven on public roads until they're repaired and pass inspection to receive a rebuilt title.

A rebuilt title is issued after a salvage vehicle has been repaired and passed a state inspection. The vehicle is now roadworthy and can be insured and registered. However, the title permanently shows it was once salvaged, which typically reduces resale value by 20-40% compared to a clean title vehicle.

Sometimes vehicles with clean titles end up at salvage auctions. These might be repos, donated vehicles, fleet vehicles, or cars with minor damage that didn't trigger a total loss. Clean title vehicles at salvage auctions can be great deals since they don't carry the rebuilt title stigma. However, they often sell for closer to market value.

Yes, but with limitations. Most major insurers will provide liability coverage for rebuilt title vehicles. However, getting comprehensive or collision coverage can be harder and more expensive. Some insurers won't cover them at all. Always check with your insurance company before purchasing a rebuilt title vehicle.

Yes, significantly. Some states have stricter thresholds for salvage titles. A few states (like Ohio and New Jersey) are known for stricter rebuilt title inspection processes. Some buyers specifically look for vehicles from states with rigorous inspection programs. The title will always show the state where the salvage/rebuilt brand was issued.

Buyer fees include: the buyer premium (percentage of winning bid), gate/yard fee (flat fee per vehicle), internet bidding fee (if bidding online), environmental fee, and title processing fees. These can add $400-$1500+ to your final cost depending on the winning bid amount. Our calculator factors in all standard fees for both Copart and IAAI.

The buyer premium is a percentage-based fee added to your winning bid. It's how auction houses make money. The percentage is tiered—lower bids have a higher percentage, while higher bids have lower percentages. For example, a $1,000 winning bid might have a 15% premium ($150), while a $10,000 bid might have 10% ($1,000). Dealer accounts typically get lower premiums.

Licensed auto dealers get preferential fee structures because they're repeat customers who buy in volume. Dealers typically pay 2-5% less in buyer premiums and may have lower or waived membership fees. If you plan to buy multiple vehicles, getting a dealer license could save you thousands in fees.

Yes! Both Copart and IAAI charge storage fees if you don't pick up your vehicle within a certain timeframe (usually 3-5 business days after payment clears). Storage fees are typically $25-50 per day and add up quickly. Have your transport arranged before you win a bid.

Sales tax depends on your state and situation. Some states charge sales tax at the auction, others at registration. Dealers with reseller certificates may be exempt. Out-of-state purchases may be subject to use tax in your home state. Our calculator doesn't include sales tax since it varies so much by location.

Use Kelley Blue Book (KBB.com), Edmunds, or NADA Guides to look up the private party value for the specific year, make, model, and mileage. Use the "Fair" or "Good" condition since you'll be comparing against the repaired vehicle. This gives you the baseline value we calculate everything from.

Our repair estimates are rough guidelines based on percentage of vehicle value. Real repair costs vary wildly based on: specific damage, parts availability, local labor rates, whether you need OEM vs aftermarket parts, and hidden damage discovered during repairs. Always get actual quotes for major repairs before bidding.

Select the damage level that best represents total repair needs. If a car has both front-end damage AND hail damage, you might need to move up a damage category. When in doubt, go higher—it's better to underestimate your max bid than to overbid and lose money.

Be honest with yourself about your skills and time. DIY only makes sense if you have the tools, space, and mechanical ability to do the work. "Hybrid" is a good middle ground if you can do basic work but need a shop for major repairs. Remember that your time has value too—a project that takes 6 months of weekends may not be worth the savings.

N/A means the math doesn't work for that profit margin. After accounting for fees, repairs, and transport, there's no bid amount that would let you achieve that profit level. This usually happens with heavily damaged vehicles or when using "paid repair" estimates. It's the calculator telling you to walk away or adjust your expectations.

It depends on your risk tolerance and experience. New flippers should target 20-25% to leave room for unexpected costs. Experienced buyers comfortable with their repair estimates might work with 10-15%. Remember: every salvage car has surprises. The profit margin is your cushion for the unknown.

Both have pros and cons. Pre-bidding lets you set your max and walk away—no emotional overbidding. Live bidding lets you read the room and potentially win for less if competition is light. Many successful buyers pre-bid their max and skip the live auction to avoid getting caught up in bidding wars.

Set your maximum bid using this calculator BEFORE the auction starts. Never bid "one more increment" beyond your calculated max. Remember that the excitement of winning often leads to overpaying. If you don't win, there will always be another car.

Start with popular vehicles that have readily available parts (Honda Civic, Toyota Camry, Ford F-150). Avoid luxury cars, hybrids, and anything with specialized parts. Look for vehicles with "light" or "minor" damage. Front-end hits are often easier to repair than rear or side impacts. Avoid flood cars entirely until you have experience.

Flood damage is extremely risky—water causes hidden electrical and mechanical problems that surface months later. Burn/fire damage is usually not worth it. Frame damage can make a car unsafe and impossible to align properly. Theft recovery vehicles may have missing components or hidden damage from vandalism.