Using a Broker to Buy Salvage Cars at Copart and IAA Salvage Auctions and Save Money on Auction Fees

my name is andre welcome to

salvage

secrets and today I am going to share with you the training I did in our private Facebook group. It's called

using

the

broker

to buy

cars

at corporate and iaa

auction

s. If you like stuff like that, make sure to subscribe, leave a review, let me know what else you want me to talk about and with that said, let's move on to the training guys okay, so today we're going to talk about a very important topic called should use a co-partner

broker

, this seems to be a common question in the group, many people wonder: Should I use a broker?

Should I buy as a private buyer? What about rates and things like that? So today we're going to talk about So let's get right to it and first, as most of you probably know, there are three types of corporate accounts and by the way, the first one is the guest account, the guest account is free and the guest account allows you to log in to

auction

s. the vehicles, actually, join the auctions and watch the auctions, but you can't bid, you can only watch if you are new to auctions to

salvage

auctions, it's a good way to get familiar with the websites, how they are auctioned. the auction process works and stuff like that, it's absolutely free, all you need is an email address in your name and you can register then and there.

The next type of account is a public account, so this is for people who do not have a business license. They are just private individuals and want to buy

cars

from

copart

or iaa, so the public account allows you to build on cars. It has a very important restriction, although most of the cars that ia and

copart

are actually available only to licensed buyers, which means licensed car buyers, like car dealerships, junkyards, repair shops, things like that In other words, you need a business license business account, uh, business account to get over these cars, so the way it works is you know these regulations are actually determined by the states, not by auctions, so most states actually restrict your ability as a private person to buy at auctions, whether it's clean title cars or salvaged cars, I think it mostly has to do with liability issues, so they just feel like it's too much. risk for a normal person who is not familiar with auctions or who does not like the automobile industry just go and buy cars in these auctions because there is a high probability of buying a car that has some unexpected problems or something potentially dangerous such as missing of air bags. and things like that that are against many laws, so to limit their liability, many more states decided to limit these auctions only to dealers or authorized bidders and this way, if you are a normal person, you cannot buy these cars which is good in the good and the bad, you know it's bad if you are, if you are, if you're not a licensed buyer, but it's good for licensed buyers because it limits the number of people who bid on these cars, it which actually gives you the possibility. to get a better deal on the car, there are these three basic types of accounts and like I said, if so, if you don't have an automotive license account, you're just a public public buyer, you're limited.

Inventory is very limited, so about 80 percent of cars and salvage auctions cannot be built or purchased. In fact, I'll list, let me see if I can list the states. There are some states that actually allow you to bid without a license and let me see I'll list them here is arizona um idaho louisiana minnesota oregon pa and vermont pennsylvania and vermont so these states allow you to allow anyone to attend these auctions and buy cars by law uh , so if you live in one of the states there is a chance that you can bid on salvaged cars without a business license and, again, even with that right, at some auctions, although the law allows them to sell cars to public buyers, they still limit their auctions. to distributors just because they don't want the liability, so you're very limited if you're a public buyer, and you know, there's basically not much you can do, and if you don't have a business license, you might be wondering: OK?

So what am I supposed to do? Andre, how do I buy these cars? Well, there is a way, as you probably already guessed, and it's called

using

the broker. Simply put, the broker is basically a third-party company. They have all the necessary licenses to build virtually any car and what they do is they buy the car on your behalf and then they sell it to you, so when you use the broker you are using a third party company that is technically not affiliated with the auction and you're buying, you're buying the car from them, so they buy the car at auction and then sell it to you.

That's how these brokers work and you know this industry is pretty nice these days. old, so a lot of these things are automated, it's a pretty easy process to use a broker, all you need to do is basically log in, you know, open the account with them, make a deposit and using some brokers you can bid directly from their website and some brokers just send you login credentials to copart or ia and then you just log in and act like a normal license purchase bidder but basically you are bidding through a broker so It's a pretty simple process, so now let's talk about what should you use a broker or not?

If you say, you know you're looking at a car and you're wondering if I should use a broker, should I buy it myself? You know, obviously, we're not going. to talk about business licenses, licenses and accounts because if you're not an automotive business or if you're not a dealer, you can't even open this type of account so we're not going to talk about this in this video uh we're going to talk about whether you should buy as a public buyer or if you should use a broker properly so there are a couple of considerations obviously the first step is to find the car you want to buy first.

All of that is like step number one before registering for the auction. Before you know, obviously, you can open the guest account, but before opening the public account at the auction or before registering with the broker, find the card you want to buy. and then you should look and see if you're in the state that allows public buyers to bid, if you're in one of these states, or actually, not just the location but the right type of documentation, so if you have, let's say, a Arizona salvage title or Pennsylvania source title or something like that basically you need to check if the auction allows you to bid on it as a public buyer and you can check that in the live description and maybe in one of the other videos I'll show you . how to do it because I can't do it with this setup right now.

I can't share my screen with you, but it's pretty simple, in the top right corner of the lab description, you can always see if you are eligible. build on this vehicle and once you found this car you won, now you have an option, if it is not available for public buyers you have no choice but to go to the broker, it's pretty easy, but let's say you found a car in arizona and you are available and you live in arizona so you can take advantage of it as a public buyer now you need to decide if you should use a broker or be yourself obviously it all comes down to a few things right and the most important thing is that the numbers are right.

It's worth it? How can you save the most

money

? If you go to the broker or buy it yourself, to register to register for the auction, the correct registration fee to register for the auction as a buyer, you must. Pay the fee fee and the principal part and that is a slight difference between copac and ia. There are two types of accounts. You can open an account for 59 a year. This is like a basic account right and you can open the premium account. It's two hundred dollars a year. And in IAA there is only one type of account and it is 200 a year, so this fee must be paid to register for the auction and start developing cars now.

As far as brokers go, there are many different types of brokers, many websites and you can find them, in fact you can find them on the copart and ia websites on copart, just go to the services tab, I think, on the top of the page and this is a drop down menu and you can click on the brokers tab and it will show you see the list of brokers, there are a lot of them, at least probably 10 or more listed there and among others, if you scroll Down on the home page in the left corner you will find the link that says runners on the right.

So, there are many different brokers, obviously they have different terms and conditions, but on average, on average, these are the broker

fees

, let me show you the correct registration

fees

. Most brokers require a registration fee similar to the auction fee, uh, it is and it varies. so let me note the registration fee of the broker and it actually ranges from zero dollars to around 200 a year yes and the transaction fee the transaction fee on average is about 250 to 300 or more and sometimes it is more , sometimes it's a little less, you know? Basically there is a fee to register with the broker and some brokers offer it for free so free registration only pays if you buy a car through them and some brokers require 100-150 registration fees something like that, so it is comparable to the auction. correct fee, something important guys, if you register with the broker, you don't need to register in the auction to bid on cars, so once you have the account with the broker and paid the fee, you don't need to pay this fee to You can see that it's pretty comparable, you're saving little

money

if you go, say, open a co-share account for 59 instead of paying, say, 200, but again you can find a broker that doesn't charge the registration fee and I'll show you a couple of examples later so you know there's not much difference here the only big difference well one big difference is the transaction fee so the transaction fee is the fee if you buy a car through the broker .

We will charge you the transaction fee which ranges from 250 to 300 or more depending on the final price of the car, the terms and conditions of the broker and this also included the document fee, and you know, sometimes there is like a small fee per document it's like twenty dollars, fifty dollars, some brokers charge a little bit more and there's a fifty dollar broker fee if you buy a car using a coupon, so as you can see guys, you know, if you ask me. True, you should bid through a broker, but let's say if you register with the broker, it gives you the opportunity to build on any car on any car without restrictions, so if you find the car, you can bid. right now as a public buyer and you register at the auction for 59 let's say with copac and then you didn't buy the car, it was for too much money, so now you're back to square one and now to the next. car, you, you, you will find that it better be available as a public buyer, but very few cars are available to public buyers, guys, believe me, it's like 80 of the cards are not available, so me personally, you I highly recommend. go through the broker and it just gives you access to more, much more inventory and there are also other benefits of using the broker, you know, the first of the benefits is, like I said, the main one is access to any car that auction, another benefit of the broker is that you do not need to pay the auction registration fee, so you can find a broker who does not charge the registration fee and you can bid on cars until you actually buy something without paying this fee.

I know that's another good thing and also a great thing with brokers is shipping assistance. Most brokers actually provide assistance with shipping and this is like a big part of their business. So you can call them on the phone and get a quote. You can see how much it will cost you to ship the car from the auction to your location and they usually have pretty competitive quotes, much better than what the auction offers, or if you try to find a shipper yourself, that's another good option. Shipping assistance is also another good thing - some brokers actually give you the opportunity to ship cars overseas.

For those of you looking to ship cars overseas, this is very important and they even offer you services like cutting cars for parts and the like. loading containers and all that, a lot of additional services, so for all these reasons guys, I strongly suggest you use a broker, the only one, so yeah, I mean, it's the only possible way that I can think of when you're not going to do it. You're not going to use a broker, let's say if you're just starting out, you're new to the salvage business game and thenYou decide to buy your first car and it is a really very cheap car, like 200 like. two thousand dollars three thousand dollars something like that and it's a co-share and you know, so you might be better off going through co-part because you'll probably save a couple hundred dollars in fees like two three hundred dollars if you buy the car, but that's the only scenario that I can see and if the car is more expensive, I'll show you another aspect of buying these guys in a second and we'll talk about the auction. fees and see if you're really saving money on auction fees if you use a broker, so let me turn this board around.

Quick, okay, this is like a really fancy diagram that I put together for you guys. Alright guys, look at this diagram now, in addition to what I said before. Let's see if using the broker really helps them save money on buyer fees. So as you know, auctions make money from fees, so fees are a big part of their revenue and we have to be familiar with these fees because they can add up very, very quickly, so in this table that I put here, The auction fee actually depends. As for the final price of the car, the more expensive the car you buy, generally the higher the buyer's fee will be, so here I made a diagram of four cars, four samples of a three thousand dollar car, a five thousand dollar car dollars, a ten thousand dollar car and fifteen thousand dollar car fee and this is copart this is iaa and this these are two types of fees, business license fee and public buyer fee fee and the same thing on this side, so let's say if you buy a car for three thousand dollars from a company and you bid as a licensed business, your fee will be 400, the buyer's fee if you bid as a public buyer, the fee is six hundred dollars and the IAEA is pretty similar now if you buy a five thousand dollar car. as a business, uh, as a business license business, the fee is 525, public buyer is 7.25, so as you can see, it's higher and there's about a 200 difference between these fees, so that's pretty much the rule of thumb if you buy as a business buyer your the fee is about 150200 less and here 525 and 750 ai but here's the deal guys look this is where it gets interesting right?

If the car you buy costs more than 5,000, and you buy it at your the rate for public buyers is fifteen percent, fifteen percent of the sales price, so anything over five thousand dollars they charge you fifteen percent. cent in buyer fees, which is pretty ridiculous if you ask me, so let's look at a ten thousand dollar car straight into the corporate business. the license fee is 600, the public is 800, among other things, the license is six hundred dollars, the license buyer fee, but the public buyer fee goes up to fifteen hundred dollars, fifteen percent of ten thousand , right, that's ridiculous, it's like more than double and then, yeah We're talking about a fifteen thousand dollar car.

Well, again, see the company goes here, it goes to the percentages four and seven percent, so six hundred for lights for commercial buyers and one thousand fifty for private buyers, but, you see, the license buyer is 650 and public buyers 22.50. 2,250 if you buy it as a private person, as you can see from this, I think it's pretty clear that, especially if you buy the car for a little over five thousand dollars, you don't want to buy it as a public buyer because their buyer fee is going to be ridiculous and this here at the bottom shows you what fee you have to pay if you use a broker correctly, so if you use a broker in copart, you will still pay the public buyer public fee, that's the way.

It's set up, that's how the corporations set it up, obviously they want to make more money, that's why they did it that way, but still, the public copper buyer fee is more or less reasonable, right, seven percent is not too crazy and If you buy from most brokers, and almost all the brokers I called or used, they give you the opportunity to buy the cars through their license fee and save money on fees, so you will pay the company the licensed trading fee if you buy through a broker in ia, so this is another important reason to use brokers for anything over 5 000 in ia because just because you save a lot of money on fees and not only that, but you know you can see the difference even here like 525 and 750 right there's 200 difference so you're saving that money too so 100 if you buy through a broker don't go don't buy as a public buyer like coparcener, like I said, if it's something cheap and not just if it's cheap, but let's say you're a coparcener and you found the car you want and it's in the state that allows public buyers to bid, then there's really no solid reason to You should register with the broker if you can buy it yourself because you are not going to save money on auction fees and you don't have to pay transaction fees to the broker so you can choose to do it as a public link so that is your decision mutual, another drawback of using the broker is the delays with the paperwork, because, as I told you before, when you use a broker, it is basically a third-party company, they buy the car from you and then transfer it to you as the buyer, so that process , the paperwork, the process takes a little bit of time, some brokers say it could take up to four or six weeks or more, so that's kind of a drawback compared to buying it directly at the auction and Chris is asking the brokers.

In my experience, they require you to use their shipping services. You know the ones I use, they didn't really require them, but they did offer them. I was offered those services correctly and have not used the brokers much. I only use them in some states. that require special licenses that even I don't have as a dealer because you know a lot of states have some crazy regulations you know in some states even if you're a dealer or you like or have a license for an automotive business you can still not bid on their rescue cards. You need special permits that you can only get in your states, like Alabama Bit Card for example, or I think in Wisconsin there are some restrictions so you need to have additional licenses to build in those states. even if you're a dealer or you know you're a business buyer, so in those cases I went to the broker and I was able to build on these cars, so like I said, that's the biggest benefit of using the brokers, not just saving.

You know, saving money in this case is saving a lot of money on buyer fees, but you also have access to virtually any inventory. You can buy car parts, just cars, scrap metal, whatever you want. Junk Title Destruction Certificate you can bid on. states that have restrictions so there are a lot of benefits and plus you know these people have been in business for a while so if you are new and have questions about how the auction works or how the bids work or how much should you pay? Things like that. You know you can call them and talk to a real person and they could advise you or at least stop you from doing something crazy.

Which is not another positive point, so use the broker. This is not a bad thing guys, that's the bottom line, so keep that in mind in some states as well. It gets a little complicated when we say they live on the same street in the same state and shop in the car. Registering in the same state where you live in some states like California and Florida is quite complicated, they have different regulations so make sure you familiarize yourself with the broker's terms and conditions before bidding and buying something, especially if in Florida or California because they have some additional regulations that make it a little bit more difficult, okay guys, so I guess I'll end this presentation here and before I do that, let me do, let me give you some recommendations. of the brokers that I used personally and the ones that I think offer excellent value for money so if you go to copart and websites the most famous the most famous brokers in co-park is auto bid master it's like a broker featured, first on the page and huge letters, you know, this is, this is the one that they recommend and let me write it or bid master autobid master dot com, so copart and in ia I think it's uh salvagebit.com So these are like the featured brokers and to be honest I never used any of them.

I'm sure they have. You know some excellent technology. They are good people, but they are not cheap. Let's say the autobidding master knows the transaction. the fee is 299 or 10 of the purchase price, so it's on top of the auction fee, which is not cheap, obviously that's true, and I think the ransom offer is pretty similar and they charge you up to three hundred, two three hundred dollars a year. register with them so I can't say if they're good or bad I'm sure, but they're like the most popular ones out there so a lot of people use them and they've been around for a long time. time um and you can bid directly from their website so you just sign up on their website and they have a functionality to bid directly through their website so I personally haven't used them because I feel like they're quite expensive.

The one I used is called advanced motors advanced motors llc and the website I created is advanced motors llc.com. These guys are located in Michigan and are really good. It's like a small business so you can get on the phone with them, everything is pretty straight forward, I use them at least two or three times and had no problems even though I didn't end up buying anything, but you know, I had no problems getting back my deposit or answer any questions. questions answered and stuff like that and another benefit of advanced engines is that they are actually brokers for both ia and copart and copart so most of them went bankrupt and most of the other brokers they like specialize in an auction right , so the automatic bid master is just co-share and salvage.

The offer is only correct but Advanced Motors can actually buy cars from you at both ia and Copart and I think the membership fee is like a hundred dollars a year but they offer you a 45 day free trial so you can sign up with them from free form. 45 days to build cars and then you can cancel your account and they won't charge you a registration fee of 100 and your transaction fee is a flat transaction fee of 200 so in addition I think there is a broker fee of 50 and something possibly some fee for the document, but this is really good because it doesn't matter if you buy a car for 3,000 or for ten thousand, they still charge you two hundred dollars, which is pretty good and, like I told you, with AI they can save.

You have money because you bid through their account and they will save you. You only pay the commercial license fee in ai which is really nice so I definitely recommend these guys. They are pretty good and I am not affiliated with them. I didn't get paid for this or anything like that. This is just my experience and another one I found. It seems pretty good. It's a better offer. A better offer. These guys have been around for a while too. I think the website's best touch is to get the offer right and they have a similar fee structure to the advanced engines.

The only thing is I think there is no registration fee so you don't have to pay to register with them and start bidding. The only thing is that you need a deposit. and the transaction fee I think is 250 dollars, so it's a little bit higher, but you know, another reason I mentioned these guys is that they actually offer car dismantling, so if you ship cars overseas, someone asked in the group the other day about the cut. cars for parts and stuff like that these guys really offer the service and you can go on to their website and you can see the prices and ask them questions and stuff like that so I would definitely check these two out instead of going with them. this expensive guys you already know