Salvage auto auction – winning situation for both buyer and seller

Salvage auto auction generally implies stolen or lost cars being auctioned off by government, insurance and other affiliated agencies. Thousands of cars are stolen or lost at any given time and these are the cars which make their way to salvage auto auction where they are sold off as salvage cars. Many insurance companies actually deal in such auctions by buying used cars and then selling them off at a profit. Government and associated agencies also participate in such auctions to get rid of the seized, lost or repossessed cars which are in their stocks as maintaining these salvage cars can take up a lot of money.

To avoid using up the taxpaying citizens’ money unnecessarily in just maintaining such salvage cars, the government takes the next best recourse of holding a salvage auto auction wherein such cars are bid for and sold off to the highest bidder. The economic downturn has also meant that many more cars are being repossessed or seized due to default payments of mortgages or car loans. This in turn has led to an increase in salvage auto auction. A salvage auto auction actually works well for both the seller and the buyer.

The seller is able to get rid of uselessly lying around cars and the buyer is able to get a car within his budget as salvage cars are priced much lower than market prices. So, all in all, a salvage auto auction provides a win-win situation for both buyer and seller.