Where that auto auction car might go if not sold in the US

I would be rife with disappointment if I wound up with a rustbucket if I lived in a land without snow.
 
I'm guessing mechanics there don't charge $100 per hour for repair. That would make it economically sustainable for them.

Exactly this, the labor in these third world countries is extremely cheap and there is no salt to corrode vehicles so they can keep older vehicles on the road indefinately.
 
Doesn't shipping kill the deal?
The ROI, especially when shipping a quantity at once, justifies the initial up front costs.

I had a friend who bought former police vehicles for pennies on the dollar in Massachusetts. A Russian national from NYC won one of the cars he put on eBay and that launched a relationship that lasted years. The Russian man would win large amounts of the cars at the government auction and then ship them via boat to somewhere. He would stay at my friend’s place the night before an auction and take us out for great dinners and drinks in return for the hospitality. He said his relatives at the other end of the transaction were making a killing at whatever they were doing. I believe at least one outlet was a taxi company.
 
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