Buying cars at auction, especially from platforms like Copart, can be a great way to find deals. However, the process isn’t always straightforward, particularly due to “dealer-only” restrictions which vary significantly by state.
In some states, like Michigan, around half of the vehicles available at auction are accessible to the general public. But in states such as Illinois and Indiana, this number can drop dramatically to as low as 10%. This means that individual buyers in certain locations face significant limitations when trying to purchase Copart cars.
The experience in Illinois highlights these challenges. Individuals who aren’t licensed rebuilders are often barred from bidding on vehicles with salvage titles. Even licensed dealers might face restrictions if they lack the specific rebuilder license. This often leads to dealing with brokers, who act as intermediaries to access these auctions.
Brokers, like A Better Bid, provide access to auctions like Copart and IAAI, but they come with their own set of complexities. These can include membership fees, deposit requirements, and additional fees on top of auction charges. Furthermore, some brokers may impose restrictions on vehicle pick-up, potentially forcing buyers to use their shipping services.
While brokers offer a workaround, understanding your state’s regulations is crucial when considering buying Copart cars. Exploring local donor vehicles might sometimes prove to be a simpler and more direct alternative to navigating the intricacies of dealer-only auctions and third-party brokers.
