IAAI Auction Questions from a Newbie

T

ThorBlindMice

Joined
Jun 12, 2023
Messages
2
So, I'm interested in purchasing vehicles through IAAI and was hoping someone could help me with some info and advice.

My situation: I've got quite a good bit of experience working on cars and I'm in a financial position where taking a loss on a vehicle would not be the end of the world (although the wife wouldn't be too happy with me 😆). I also live close to the Detroit IAAI branch. I'm also in no hurry (only buying the exact deal I'm looking for even if that's less than once a year). I'm hoping to, at worst, buy my own family a vehicle for cheap or, at best, buy 1 or 2 vehicles a year to flip for a little side cash.

The type of deals I'm looking at: Since I'm no salvage rebuilder, I'm basically only looking at vehicles that are Available to the Public, Run & Drive, Keys Present,
Screenshot 2023-06-13 090543.jpg


My questions:
1. I'm wary. These deals seem too good to be true and most of the time that means you're missing something. The Rav4 shown above, for example, seems to be a $24k vehicle, likely getting sold for around $10k. Even including IAAI's fees, some unexpected repair costs, and registration/title, this would still be a steal compared with buying something comparable from a dealer or privately. And this is by far the best I've seen. I recently saw a 2020 Durango worth $36k (no damage listed at all) sell for $6k. So what gives? Am I missing something?
2. Why are vehicles with so little damage even being sold through IAAI? Occasionally vehicles will come through with no damage at all. Should I trust that that's accurate?
3. The site says I can "View it in person prior to the sale during the auction preview window". How does this work? Can I just look at it, turn it on, drive it, etc.? Like I mentioned, I live close by.
4. Basically all of the vehicles I see have "Clear" titles. Does this mean it's like buying a car from a dealer or privately when it comes to titling and registration? How would this differ if I were buying cars with rebuilt, salvage, or "wait for title"?
5. In general, how risky is purchasing the types of vehicles I'm looking at? I spoke with someone from IAAI that told me that the damage type is self-reported so unless it is obviously incorrect, you are reliant on honesty and that they don't actually drive the vehicles to check Run and Drive (they only turn them on and put the car in Drive). Should I go in with the mindset that there are probably things wrong with these vehicles that people are not reporting?

Thanks for any information anyone is willing to share and any advice.
 
A preview note- go buy a $300 car at auction and get it running. You will learn a lot from it. Also, one can’t do this without a dealer license. Public auctions bring out too many consumers bidding. The “deals” are auctions that restrict the public.

I look at over 1,000 vehicles a week. Might be 10 of those a match for a independent guy like me wanting to have something to do, I am not even doing this for profit, just a challenge and I can afford a loss, and can afford a car sitting months waiting for parts at the right price. I am not wealthy by any means, but I am able to buy salvage cars without impacting household budget.



My questions:
1. I'm wary. These deals seem too good to be true and most of the time that means you're missing something. The Rav4 shown above, for example, seems to be a $24k vehicle, likely getting sold for around $10k. Even including IAAI's fees, some unexpected repair costs, and registration/title, this would still be a steal compared with buying something comparable from a dealer or privately. And this is by far the best I've seen. I recently saw a 2020 Durango worth $36k (no damage listed at all) sell for $6k. So what gives? Am I missing something?

Yes, the deals are too good to be true. Any real deal, or possible deal will be swooped up by a professional in the salvage buying business. Any vehicle that is too good to be true took a pass from a auto salvage buying professional. You have to ask why did the pros take a pass?




2. Why are vehicles with so little damage even being sold through IAAI? Occasionally vehicles will come through with no damage at all. Should I trust that that's accurate?

No, trust nothing at an auction sale. Whatever you are viewing, the damage is significantly worse. One needs to look who the Seller is. If it is not a insurance company- run away. Every car you look at requires a investment in both a Carfax and a epicvin report. So if you are serious about a certain car, budget $40 just to see deeper into



3. The site says I can "View it in person prior to the sale during the auction preview window". How does this work? Can I just look at it, turn it on, drive it, etc.? Like I mentioned, I live close by.

You can only preview a vehicle from 10am until 2pm the day before the auction. You can’t start it, can’t drive it, you can’t bring any tools or diagnostic equipment with you.


4. Basically all of the vehicles I see have "Clear" titles. Does this mean it's like buying a car from a dealer or privately when it comes to titling and registration? How would this differ if I were buying cars with rebuilt, salvage, or "wait for title"?

Wait for title means the title has not been received at the auction house from the Seller. The auction house does not know how the title will arrive, but 99 percent of the time it will be a salvage title. Never ever buy a rebuilt title car at salvage auction. That car has been repaired, and repairs so bad the Seller will only sell at a as is auction. Clear titles are usually a “run away” also, might be a charity donation car that was so bad the charity won’t even sell it to a broker.


5. In general, how risky is purchasing the types of vehicles I'm looking at? I spoke with someone from IAAI that told me that the damage type is self-reported so unless it is obviously incorrect, you are reliant on honesty and that they don't actually drive the vehicles to check Run and Drive (they only turn them on and put the car in Drive). Should I go in with the mindset that there are probably things wrong with these vehicles that people are not reporting?

Super risky. I strongly urge you find a local car that has an issue and repair it, and see if you are ahead when compared to buying a used car without an issue.
 
ThorBlindMice said:
4. Basically all of the vehicles I see have "Clear" titles. Does this mean it's like buying a car from a dealer or privately when it comes to titling and registration? How would this differ if I were buying cars with rebuilt, salvage, or "wait for title"?
Click to expand...
A "clear" title means that it does not have a lien on it. "Clear" does not mean "clean" as the title will likely be "branded". A vehicle with a branded title will be worth roughly 50% to 60% of the value of a vehicle with a clean (non-branded) title. Vehicles with branded titles are generally not able to be financed, greatly reducing their value.
Clear title=no lien
Clean title=not branded
Branded title=a title that has been "branded" by the state as salvage, rebuilt, flood, manufacturer buyback, theft recovery, etc.
 
Last edited:
2010Civic said:
The prebid is $9575 with two days left. What makes you think it'll sell for $10k??
Click to expand...

Exactly, this thing will sell for way more than it's worth. There's snow in the pictures it's been sitting so long. Way too much of a risk on these auction vehicles than they're worth, a big waste of time and money chasing little savings - and that's if you're lucky.
 
dishdude said:
Exactly, this thing will sell for way more than it's worth. There's snow in the pictures it's been sitting so long. Way too much of a risk on these auction vehicles than they're worth, a big waste of time and money chasing little savings - and that's if you're lucky.
Click to expand...
Hard to put a money factor on one's time-and what exactly the expenses are. GON never posted what happen to the electrical part that was allegedly defective for the Mercedes SUV. Did the dealer just switch it out like he wanted? Also on the smaller hatchback he bought-he drove it to a local garage with a bent axle and sold it to them? How much money was lost there?

Not taking any credit away from GON for his ability to trouble shoot and repair. But there is more to the story and these "junker finds". It would seem on the surface he got luck on the last Mercedes compact SUV. This truck he has posted in another thread looks like a piece of garbage to me-JMHO.

If it was easy everybody would be doing and there wouldn't be any bargains.
 
CKN said:
If it was easy everybody would be doing and there wouldn't be any bargains.
Click to expand...
Way better off buying a Jetta from the rich side of town that Daddy bought "Buffy" as a college car. Now it needs wheel bearings, an alignment, headlight polishing, and tree droppings buffed out of the paint. "Jetta" = Mini, 500, Smart, Sentra... That family already gave up on it, you can say something stupid like it's worth 60% of retail due to misplaced maintenance records and they'll still sell it to you.
 
eljefino said:
Way better off buying a Jetta from the rich side of town that Daddy bought "Buffy" as a college car. Now it needs wheel bearings, an alignment, headlight polishing, and tree droppings buffed out of the paint. "Jetta" = Mini, 500, Smart, Sentra... That family already gave up on it, you can say something stupid like it's worth 60% of retail due to misplaced maintenance records and they'll still sell it to you.
Click to expand...
Agree....but not an issue if it's a Corolla.
 
ThorBlindMice said:
So, I'm interested in purchasing vehicles through IAAI and was hoping someone could help me with some info and advice.

My situation: I've got quite a good bit of experience working on cars and I'm in a financial position where taking a loss on a vehicle would not be the end of the world (although the wife wouldn't be too happy with me 😆). I also live close to the Detroit IAAI branch. I'm also in no hurry (only buying the exact deal I'm looking for even if that's less than once a year). I'm hoping to, at worst, buy my own family a vehicle for cheap or, at best, buy 1 or 2 vehicles a year to flip for a little side cash.

The type of deals I'm looking at: Since I'm no salvage rebuilder, I'm basically only looking at vehicles that are Available to the Public, Run & Drive, Keys Present, View attachment 161009

My questions:
1. I'm wary. These deals seem too good to be true and most of the time that means you're missing something. The Rav4 shown above, for example, seems to be a $24k vehicle, likely getting sold for around $10k. Even including IAAI's fees, some unexpected repair costs, and registration/title, this would still be a steal compared with buying something comparable from a dealer or privately. And this is by far the best I've seen. I recently saw a 2020 Durango worth $36k (no damage listed at all) sell for $6k. So what gives? Am I missing something?
2. Why are vehicles with so little damage even being sold through IAAI? Occasionally vehicles will come through with no damage at all. Should I trust that that's accurate?
3. The site says I can "View it in person prior to the sale during the auction preview window". How does this work? Can I just look at it, turn it on, drive it, etc.? Like I mentioned, I live close by.
4. Basically all of the vehicles I see have "Clear" titles. Does this mean it's like buying a car from a dealer or privately when it comes to titling and registration? How would this differ if I were buying cars with rebuilt, salvage, or "wait for title"?
5. In general, how risky is purchasing the types of vehicles I'm looking at? I spoke with someone from IAAI that told me that the damage type is self-reported so unless it is obviously incorrect, you are reliant on honesty and that they don't actually drive the vehicles to check Run and Drive (they only turn them on and put the car in Drive). Should I go in with the mindset that there are probably things wrong with these vehicles that people are not reporting?

Thanks for any information anyone is willing to share and any advice.
Click to expand...
You usually get what you pay for However it's not all gloom and doom. Check out the interesting story over at NPR. A journalist was contacted by an automotive mechanic from Turkmenistan. He said that a client of his purchased a one-year-old Lexus RX and he couldn't understand why America would throw out a 7k mile vehicle. It was a flood branded vehicle in the New York hurricane. It needed fluid changes and the carpet cleaned but ran fine.
 
2010Civic said:
A car that has very little damage or easy damage will go for a lot. The deals are on cars that require skill to fix.
Click to expand...
Understand that you are bidding against a worldwide audience.

Even with shipping many foreign buyers are willing to pay more for the car than the blue book for a non-wreck in the wild.

Rarely a deal to be found
 
Rmay635703 said:
Understand that you are bidding against a worldwide audience.

Even with shipping many foreign buyers are willing to pay more for the car than the blue book for a non-wreck in the wild.

Rarely a deal to be found
Click to expand...
But they can be found. It tales looking at 1,000 vehicles to find 10 worth a deeper look. But when one finds them- nice.

These are my current salvage buys at my home this very moment. All worked out well. I have also had two that did not work out well, but no big deal.

2005 Mercedes S class
2010 Mercedes ML class
2012 Mercedes S class
2005 Lexus GX 470
2015 Ford F350

All the above cars are awesome- but it takes work.
 
97prizm said:
You usually get what you pay for However it's not all gloom and doom. Check out the interesting story over at NPR. A journalist was contacted by an automotive mechanic from Turkmenistan. He said that a client of his purchased a one-year-old Lexus RX and he couldn't understand why America would throw out a 7k mile vehicle. It was a flood branded vehicle in the New York hurricane. It needed fluid changes and the carpet cleaned but ran fine.
Click to expand...
I wouldn't want to drive a ex-flood vehicle. That's why I have insurance. When GON buys these things he goes through them with a fine tooth comb. The insurance company doesn't want the liability of wet clock springs, damaged electrical connections, etc. It's easy to see why they are totaled. Let the second and third world countries have them. I have just traveled up and down both coasts of South America. A flooded Lexus RX would be one of the nicest vehicles in many of those countries.
 
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