What kind of damage is it better to take cars from US auctions with?

It's no secret that buying a car at auction in the USA for subsequent repair is more profitable than purchasing cars without visible problems. That's why auction platforms like Copart or IAA, offering vehicles with various types of damage, are so popular in America. Choosing the most promising among these cars is almost an art. Tips from Auto4Export experts will help you make the right decision.

So, what types of damage or other issues significantly reduce the price of cars at auctions, which can be fixed during repairs in our workshops and promise profitable resale? Let's compile a short list.

1. Damage to body panels

Cars involved in minor accidents (or driven carelessly) usually have minor damage. Typically, this damage does not affect the structural (sometimes called power) components of the body – pillars, rails, cross members, roof, sills, spare tire well, etc. – and do not compromise the vehicle's geometry.

Ideally, the impact should be on the body panels (bumpers, fenders, doors, hood, trunk lid, or tailgate), especially at a tangent. They are easily replaced, or even cheaper, repaired.

The cost of repairing the car will depend on where you perform the repairs. Of course, it cannot be called cosmetic, but it certainly won't be ruinous.

2. Accidents involving animals

In the USA, wildlife proliferates at an alarming rate, often ending up under the wheels of cars. The extent of damage to the vehicles in these accidents directly depends on the size of the animal and the speed of the collision. It's one thing to encounter a deer or moose suddenly darting onto the highway and quite another to graze a raccoon on a country road.

Usually, in all such incidents, the bumper, fenders, and sometimes the windshield suffer damage. Occasionally, the cooling system malfunctions (for example, the radiator).

The aftermath of accidents involving our smaller brethren sometimes looks daunting but often doesn't result in expensive repairs.

3. Cars found after theft

Cars in the USA, like worldwide, are insured against theft. Compensation for damages in the event of theft occurs promptly.

However, if a stolen car is found, it is not returned to the previous owner. The car becomes the property of the insurance company, which immediately puts it up for auction to recoup its losses.

Lots of stolen cars are marked with special tags - Theft, Unrecovered Theft, or Recovered Thefts.

Buying such cars is beneficial for two reasons. Firstly, car theft in the USA rarely involves damage to the vehicle - it was not stolen to be wrecked. Secondly, the sellers are reliable insurance companies. Therefore, there will be no problems with processing and exporting the goods from the USA.

One "but": the ignition keys may be missing from the car. But this problem is solvable, even when it comes to chipped keys.

4. Cars seized from debtors

Auctions often sell cars confiscated by banks from their owners due to their debts on loans or other payments. Such vehicles are marked as Repossessed, have all the necessary documents, and are in good working condition. Among them are almost new cars with low mileage because used cars on credit are not often taken.

Seized cars are a profitable option for purchase. But there are nuances here as well. Such a car may have hidden defects due to the manipulations of the previous owner.

A special type of confiscated car, often found at auctions, is marked with Abandonment Paperwork. These are vehicles confiscated by US government agencies in public places or on private property - usually because they were left there for a long time.

5. Cars without damage

This possibility also needs to be mentioned. Cars without damage can be purchased at any auction - they usually have the Normal wear label. The largest selection of such cars, and the most reasonable prices, can be found at the Manheim auction, which positions itself as the largest not only in the USA but also in the world (car sales reach 6 million units per year). Here, cars with expired warranties, taken on lease, seized by insurance companies, banks, delivered from liquidated enterprises, etc., are sold. They are united by the absence of mechanical or any other critical damage.

The advantage of the auction is that all cars sold on it undergo a mandatory inspection procedure conducted by Manheim inspectors. The downside is the same: cars that auction staff spend their time on are more expensive than those of competitors.

Are you interested in buying a car from US auctions?

With this being said – you can still export vehicles and save up a few thousand dollars with Auto4Export. We have an inventory of over 150k plus vehicles with titles you can export for you to choose from. Once you have placed your bid and won the auction a Bill of Sale document is then emailed to you as proof of purchase – after full payments have been made. 

To gain access and get started on your purchase, sign up for free. 

Further Reading

How do US auto auctions work?
Dispelling 7 Main Myths About Buying a Car from the USA auctions
Buy Salvaged Cars from the USA. What's the Meaning and Benefit?
How to buy a used car from a US auction