Listen to the interview with Salvato Auctions, including a limited-time AutoSavvy offer!
Interview Transcription:
Matt
So. Hey. Welcome, everybody. This is Matt Sweatfield, Vice President of Purchasing here at AutoSavvy. You guys know AutoSavvy is the nation’s largest buyer of rebuilt salvage title vehicles. And we’re going to spend some time with Dan Oscarson today, he is the Head of Global Buyer Development at Salvato Auctions. Before I do that, you know, I just want to kind of touch on the state of the industry.
You know, as we go into the winter months, you know, now is the time when you buy cautiously, right? Every single penny that you spend right now is important. And I think that’s why it’s so important that we have Dan on today. He’s going to talk about how we can save you on fees and kind of introduce you to Salvato Auctions.
Our goal is to help you buy cars as cheap as possible, so the margins on your cars are as strong as can be when you sell them to AutoSavvy. You know, as I mentioned, Dan is the Head of Global Buyer Development at Salvato Auctions. Probably you’ve already heard about Salvato, you know, we’ve been sending a lot of great information out about it.
But Salvato is the new salvage auction. They’re selling 100% insurance vehicles. So, you don’t have to worry, about all the stage units and some of the funky stuff we see from Copart or IAA. I think the biggest thing that we really want to harp on here is, you know, the fees are 20 to 40% lower than Copart or IAA.
And Dan will kind of touch on that here in a minute. But to touch on Dan’s background a little bit, you know, Dan spent over 30 years of his career working with IAA and in various roles and operations, Vice President of Marketing, Vice President of Global Marketing and Development. He also recently spent a year in Dubai as COO with Marhaba Auctions.
With his extensive background, he really, really understands the pain points the builders are experiencing. Salvato Auctions is selling the same insurance vehicles that used to go to Copart and IAA. With that being said, Dan, welcome to the program.
Dan
Thank you, Matt. It’s really a pleasure to be with you today.
Matt
Well, we’re happy to have you. So, let’s jump right into it.
So, tell us how Salvato Auctions came to be, and really honestly, how do you compete against these giants such as Copart and IAA?
Dan
Buyers and sellers alike are both looking for more competition and that’s what Salvato Auctions is doing. It’s bringing competition to the marketplace by operating on a different model, where we can save money and lower auction fees by 20 to 40% across the board.
Matt
That’s awesome. Well, Dan as vehicle prices and auction fees have gone up year after year, rebuilder margins have gotten thinner and thinner, making it really difficult for them to compete in the market. How are you able to offer the lower auction fees and why is it why does it fall on that 20 to 40% range?
Dan
Our new operating model is decentralized. We don’t have 50 acres in every major city. We sell the car where it sits, so it’ll be found at a secure storage facility or a tow yard, and we’re able to inventory that vehicle, take all the photos, the running engine videos, and all of the information that buyers need to fairly assess that vehicle by selling it where it sits, reduces the cost of tow to the salvage pool, it reduces incidental damage, and, it is that with that decentralized model, reduces all the land expense and operating costs of operating, those large facilities. And we pass that savings along to our buyers. And the reason that our savings range is 20 to 40% has to do with the way Copart and IA charge their buyers. High volume buyers and those who spend a lot of money, they get a discounted buyer fee rate.
Those who don’t qualify for that, who are low volume buyers, they pay a little bit higher rate. So, the high volume buyers at Copart and IAA will still save 20% on auction fees at Salvato Auctions and low volume buyers, they’ll save up to 40%. So significant savings all the way around. And on top of that, there’s no environmental fee, no internet fee, no gate fees.
It’s just a single simple buyer fee. It’s what buyers have been asking for, for a long time.
Matt
That’s awesome. Well, what kind of vehicles are you selling right now? You know, where are they located? You know, you can kind of, and sure, it sounds like you guys don’t have a bunch of auction yards across the US where cars are just sitting… and so, it sounds like you’re doing something a little bit different. So, tell us a little bit about that.
Dan
The initial insurance companies that we’re doing business with are giving us cars in the state of Texas. We expect that to expand in 2026 into many other states. But for right now, they are here in Texas. But I can tell you, we’ve already sold vehicles to buyers outside the country, to New Jersey, Iowa, and other states because they recognize value.
If they buy the car at the right price, they can pay to move it across the country or to another state. These are all 100% insurance cars. We don’t sell dealer consignments or abandoned cars, fleet cars. And all of these are straight off the street. Fresh, active insurance claim cars coming into our system.
Matt
Let’s talk a little bit about the actual auction process right now.
Does it really mirror and follow a Copart and IAA do so as far as selling vehicles sequentially, or are you guys set up a little bit different?
Dan
It is a little different. I mentioned that timed auction and that’s exactly what we have. We open our auctions every other week on a Thursday morning at 9 a.m., and the auction is open until the following Wednesday morning at 9 a.m. central time.
So, buyers have six days. You can come any time. You don’t have to watch the auctions all day to wait for item number 422 to come up for bid. You can go and see all of our vehicles at one time. You can place your bid and walk away and come back on Wednesday and see what you won. You can place a single bid or you can place a max bid.
The other thing that’s really nice about our auction format is that whoever the high bidder is will be awarded the vehicle. If you’re the high bidder, it is a pure sale or a guaranteed sale at that price.
Matt
That’s awesome. Well, yeah, I want to move on to another sore subject, you know, something that people are always talking about pain points and that’s, that’s really, titles.
Right? Getting titles can be a really sore subject with the buyers, you know, additional delays, Fedex expenses. How does Salvato handle these types of issues differently? What do you, what are you guys doing different and how are you handling issues?
Dan
We are selling all of our vehicles on a West Virginia salvage title, which is a digital title.
After you are awarded the vehicle, your title will show up in your dashboard within an hour of the purchase. It’s a digital title that is accepted by all 50 states and for exporting cars. So, there’s no waiting for signatures, there’s no Fedex fees, moving paper around or clerking for all of these things. You’ll get a PDF with a visual representation of the digital title and your key to verify that title through the West Virginia DMV system.
Matt
So, I just want to, I just wanted you to say that again. You’re saying that somebody buys a car through Salvato, they can have access to that title the same day?
Dan
It usually shows up in your dashboard within an hour. So that title is ready to go.
Matt
Wild. Wild. That’s so cool.
Dan
Now, some people have asked, can I still get a paper title if I just want to do it the old-fashioned way?
And the answer is yes, it’s 20 bucks and it’ll take a couple weeks or so, but we can mail you a title. But again, the whole purpose and point of Salvato Auctions is to reinvent this industry and compete against Copart and IAA. And we are doing things differently. And I think that once people understand this new process and learn about it, they’ll line up to participate in it.
Matt
That’s great. That’s awesome. Well, we’ve talked a little bit about the bidding process. We talked a little bit about the titling process. Let’s talk about vehicle payment and the pickup process. Does Salvato have loading services available?
Dan
So, all of our yards and storage facilities can help. They’ll bring the vehicle out and they’ll bring it to the front of the yard and bring it into the loading area.
Most of them, they can help get the vehicles loaded on to a lower level or on a lower deck type transport, but payment is very easy with a wire transfer. We also have an ACH option, so that’s very simple. We give buyers six days to pay for and pick up vehicles. So, with that Wednesday auction closed, buyers have until the following Monday to pay for and pick up vehicles.
Matt
Well, let’s talk about this a little bit. The next step is how to how to our listeners register with Salvato. So how do they sign up and participate?
Dan
Well, it’s very easy. They’ll go to salvatoauctions.com which is our website. They can see all the vehicles that we have for sale. You can search active auctions and see what vehicles are available right now.
Or you could search all of our inventory to see what’s coming in the future. But as a special promotion, we have an offer for AutoSavvy customers to go to salvatoauctions.com/autosavvy, and they’ll get a $100 account credit they can use and apply toward their first purchase. So again, that’s salvatoauctions.com/autosavvy.
And get a $100 credit on your account to use on your first purchase.
Matt
That’s awesome. We appreciate you doing that for our builders and buyers out there. It’s like a free $100 bill in your pocket when you buy your first car, right?
Dan
You got it. That’s right.
Matt
Awesome, awesome. Well, you know, obviously, you know, I’m passionate about the salvage industry in the rebuilding industry.
And it’s really cool to see something like Salvato Auctions. And I think you guys are really positioned to make a huge impact on the auto salvage auction industry. Why did you want to be a part of this startup, Dan?
Dan
This opportunity to create a new space within this industry is so exciting because all the things that I’ve learned, good and bad, I’m able to use now and create something better, our real main objective is to really reshape the industry and find a better way to liquidate these vehicles.
That puts more money back into the pockets, where it belongs. And that is with the buyers and with the sellers to lower costs and make the industry better for everyone.
Matt
That’s really awesome. You know, Dan, I think, one thing, you know, I think I want to point out is, so everybody really understands is, you know, AutoSavvy, has no skin in the game with Salvato.
You know, we are not direct business partners or affiliates. You know, here at AutoSavvy, we saw Salvato. We knew there was a need for a change in the, in the salvage auto auction industry. You know, we love disruptors. AutoSavvy has been a huge disruptor in the used car industry. And we saw when we heard about Salvato, we knew we needed to partner up with you in the sense of bringing awareness to the brand in the earliest possible.
So, you know, obviously, I want to say, you know, good luck to you and Salvato Auto Auctions, and we’re super excited to see what happens.
Dan
Thanks, Matt. I really enjoyed our conversation and I wish you and your builders the best. We’re working hard at Salvatoauctions.com to provide all those things that we talked about.
No registration or membership fees, 20 to 40% lower auction fees, six days to pay and pick up, and all the things that buyers have been asking for for a long time. Don’t forget about that $100 AutoSavvy credit. If you listen to this recording, then you’ll be able to go to salvatoauctions.com/autosavvy. That’s salvatoauctions.com/autosavvy.
And we will issue a $100 account credit on your account.
Matt
You know then we wanted to keep it short & sweet. Everybody’s busy, so that’s all we’re going to go over today. Thank you so much for your time. And you know, I’m sure we’re going to do a lot of work together in the future, and I’m really looking forward to it.
Dan
Thanks, Matt.
Matt
Thank you. Dan.