Insurance Auto Auctions, formerly known as IIA, is pleased to provide its customers with a complete overview of this rapidly growing industry. The United States auto salvage industry claims insurance autoapproximately 3 to 5 million cars each year as either total or partial losses. This is mainly due to the economic recession that is affecting the nation and the resultant drop in car sales.
According to statistics, salvage yards are the number one source of auto repairs in the entire U.S. In addition to repairing cars, salvage yards are also involved in the recovery of various parts for automobile repair as well as in the refurbishment of the car from a used state to a new state. This type of auto work is done by qualified mechanics who have earned their stripes under the supervision of experts in the industry. They are usually employed by auto salvage companies and are required to abide by strict codes of conduct. They also work closely with the salvage yards as well as other automotive-related businesses.
The salvage yards are an excellent source of profit. Because the value of these automobiles is so high, car owners are happy to part with them at a much lower price than they would get it from new car dealerships. Moreover, the cost of insurance auto auctions is usually lower than the regular market rate, making it even more beneficial for the owner to part with these vehicles.
Many salvage yards operate in close collaboration with auto insurance agencies. Many auto insurance companies have begun to advertise their policies on salvage yards and the associated salvage yards are now offering a special rate package for their clients. In fact, many insurance agencies will even negotiate directly with salvage yards over what they charge for their policy.
As mentioned earlier, the salvage yards have been a source of great profit for auto insurance companies since they purchase salvaged cars with a resale value considerably less than the original cost. The difference between the sale price of the vehicle and the insurance company’s offer often results in savings to the insurer. As a result, many insurers now prefer to buy salvage cars rather than repair cars.
One of the most important aspects of purchasing insurance auto auctions is the availability of a knowledgeable staff. Salvage yards must have knowledgeable workers who can answer any questions that you may have. About the business and can also provide you with referrals if you are having problems or questions about the cars available.
Another point to consider is that insurance auto auctions do not accept new cars, only pre-owned vehicles. There are many reasons why cars are not accepted, but the main reason is because of safety concerns.
If you are interested in buying a car at salvage yards, make sure to find out beforehand if they accept these types of cars. Also, if you are looking for used vehicles, check with your local laws concerning buying a pre-owned car at a yard. There is another aspect to this, which you should carefully consider before buying at salvage yards: the safety record of the car being sold.
