Buying a Salvage Car in California:
In-Person or Broker?

The process and regulations for purchasing salvage vehicles by private parties at auctions like IAAI or Copart vary from state to state. This article focuses on buying salvage cars as a California resident. In California, you cannot purchase directly from the auction unless you have a dealer, dismantler, or broker license, which is unlikely for most individuals. Therefore, you must use a broker service to make a purchase, which can cost an additional $300 to $500 (or more for car lots over $10,000), including access to the auction inventory, the ability to participate in live auctions, and documentation fees. However, depending on where you live in California, you may consider purchasing from auctions located in nearby states like:

 

• Arizona and
• Oregon,

 

where you can participate in bidding directly without a broker, avoiding the commission and sales tax at the time of purchase. Sales tax will be due when you apply for the new (Rebuilt) title at your local DMV. In our opinion, if you are buying a vehicle under $12,000 to $14,000, the convenience of using a broker may still be worth the cost, especially if you are unable to pick up your purchase in person.

 

 

Feb, 2023

SF Auto Labs.