When looking to buy or sell semi truck salvage there are two primary auction types - online and offline. Offline auctions take place locally and may have limited inventory or reach of available sellers or buyers. However, in online auctions salvage truck buyers are able to look at an array of inventory. Below, we will walk you through both types of auctions and the benefits of either auction type delivery.
How Salvage Auctions Work
If a vehicle has been damaged to the point that an insurer has deemed it more expensive to repair, in relation to the cost of the vehicle, then a truck’s title is branded “salvage”.
Though this may indicate that the vehicle is beyond repair, it can be an opportunity to rebuild a commercial vehicle that you otherwise would pay top dollar for as well as an opportunity to rebuild a big rig from the ground up with all the specifications you want.
To begin, buyers and sellers must qualify to participate in semi truck salvage auctions. Depending on the state, only individuals and businesses with dealer licenses can participate in insurance salvage auctions. As a buyer, this guarantees certain protections for both the quality of the salvage commercial vehicles and oversight of the auction.
To obtain a dealer’s license, one must submit an application through the state’s Department of Motor Vehicle (DMV). The requirements for each application vary by state, but without approval from the DMV, you aren’t allowed to independently buy or sell salvage. If you do not have a dealer’s license then you’ll need to work with a broker. A broker acts on behalf of the buyer or seller allowing those without dealer licenses to participate in auctions. Brokers can assist in everything from vehicle inspections to bidding strategy as they are there to help you! In both cases, these oversights are meant to protect both the buy and seller.
In most cases, you must make a deposit to establish your bidding power or provide proof that you have a minimum line of credit. For example, we ensure that buyers have proof from their bank indicating that they have a $100,000 line of credit or an equal amount of cash.
As you review the options available to you, pay attention to vital information like vehicle history reports and insurance repair estimates. This information can help establish what the full cost of the salvage truck will be, not just the bidding price. Knowing more of what’s out there improves the chances of finding what’s right for your business or your needs.
Offline or Local Salvage Auctions
After being approved, you can start shopping around semi truck salvage auctions. Many local auctions are public, which means that inventory is advertised ahead of time with a list of available salvage commercial vehicles. This gives you the opportunity to narrow your search and saves time pre-auction.
When the day arrives, get there early to seek out and assess your target trucks. Being able to see the truck in person can help you verify the condition of the vehicle prior to bidding. Once the auction begins, you’ll want to identify where the “ring man” is for your auction lane, as they’re the people responsible for identifying bidders.
When it’s time to collect it’s up to you and the seller to make the arrangements to retrieve the salvage. In addition to the cost of the salvage vehicle you are buying, be aware that many local auctions also have additional fees for transporting the salvage to its final destination once bought. These fees can vary depending on the auction site, so make sure to budget for extra funds.
Online Salvage Auctions
In an online salvage auction, buyers will place bids for each salvage item directly through the online auction site. This can be done by logging into your account on your choice of an online auction site and finding the item you're interested in and entering a bid amount. While the bidding is online, some sites may also allow bids to be placed through fax, email, or phone.
While each site is different, at Heavy Salvage, bids can be viewed live through the seller’s account. Once bidding is closed the buyer has a certain number of days to honor their bid. On average, online auctions request that buyers honor their bids within 20-30 days. At Heavy Salvage, we ask that buyers honor their bids within 25 days.
The seller may take as long as needed, however, the buyer does have the right to refuse the salvage piece after 25 days from the closing date. In doing this, Heavy Salvage works to best protect both our buyers and sellers.
Sellers may be selected as the winning bid in two ways. Either the highest bidder wins the auction, or, in some cases the seller can award the salvage to the buyer of their choice- regardless of bid amount.
Once the seller selects the winning bidder all parties involved- bidder, insurance adjuster, and an insurance company representative will be notified. Like local auctions, it is the responsibility of the seller and winning bidder to make the arrangements to retrieve the salvage.
One of the biggest benefits to online semi truck salvage auction sites is that they can connect sellers to larger pools of semi truck salvage inventory - many of which update daily. This allows buyers access to a broader inventory than what’s being locally sold. Online salvage auctions also make it easier to find a semi truck at the price and condition that best suits your needs.
Buy and Sell with Heavy Salvage
Semi truck salvage auctions can seem intimidating at first, but with the right resources and support from a company you trust, the process is much easier. Heavy Salvage offers the industry’s most trusted system of buying and selling transportation salvage. Through our nationwide pool of verified users and 24-hour customer support, we go to great lengths to ensure buying and selling salvage is easy.