Recently we asked for feedback from this Rebuilder community. We are still tallying the results and will share those with you. But, some feedback or questions we did get revolved around Insurance Auctions. To help you make informed decisions and optimize your purchases at auctions like IAA and Copart, we have compiled valuable tips and tricks. Our focus will address your main concerns: cost, parts supply, and demand for the finished vehicle.

1. Thoroughly Research the Vehicle & Attend Various Auctions:

Before bidding, thoroughly research the vehicle of interest, including VIN checks, history reports, and available photos. Assess its condition, previous damage, and parts availability to estimate costs and determine its potential market value after restoration. Attend multiple auctions via IAA and Copart to find the right vehicle at the right price.

2. Set a Profit-Focused Budget:

Establish a clear budget before bidding. To avoid overspending, use the Rebuilt Wholesale Value Tool to help determine a top-line value and work backward from there. Meaning, use that value and then back out: Fees, Transportation Costs, Parts Estimates, Time/Carrying Costs, & Profit Objective.

3. Verify Parts Availability:

Research parts availability for the make and model you’re interested in. Check with local suppliers, online marketplaces, and salvage yards to ensure necessary components are readily available.

4. Analyze Market Demand:

Gauge the demand for the specific vehicle type once your project is completed. Explore local and national markets to assess potential buyers’ interest and willingness to pay. Focus on popular makes and models with higher demand for better investment returns. It is easy to fall into the trap of building “fun” cars or cars you love personally. However, you must factor in your ability to quickly retail or wholesale the vehicle.

5. Build a Networking Circle:

Connect with fellow rebuilders, enthusiasts, and suppliers in your area to gain insights, recommendations, and potential buyers for your projects. Utilize online communities, forums, and social media platforms to expand your network.

We hope these tips will assist you in finding the right vehicles at insurance auctions. Remember, thorough research, a profit-focused budget, and an understanding of market demand are key to your success. If you have any questions or need further guidance, please don’t hesitate to reach out.

Happy Building.