When a leased car is involved in an accident and declared totaled by the insurance company, the insurance settlement typically pays off the leasing company, and the car becomes the property of the insurer. The insurance company may then decide to sell the vehicle at auction to a salvage company like IAA (Insurance Auto Auctions) or CoPart.
If you’re interested in buying back the vehicle from an IAA auction, follow these steps:
Contact the Insurance Company: Let the insurance company know of your interest. They might facilitate information on when and where the car will be auctioned. Note, however, that they typically do not reserve vehicles for individuals.
Register for an IAA Auction Account: IAA requires registration for participation in auctions. Some auctions are open to the public, while others may be restricted to licensed dealers or dismantlers. Ensure you meet the requirements for bidding on your vehicle.
Understand the Vehicle’s Status: Once a car is totaled and auctioned, it is usually branded with a salvage title. This affects its resale value, insurability, and ability to be registered for road use, depending on your state’s laws.
Vehicle Inspection: If possible, inspect the car before bidding. Totaled vehicles can have significant damage, and understanding the extent can help you estimate repair costs.
Prepare for Bidding: Know your budget and the auction terms. Auctions can be competitive, and you should set a limit on how much you’re willing to spend.
Purchase and Recovery: If successful, you will need to complete the purchase process through IAA and arrange for vehicle pickup or delivery. Understand the additional fees, taxes, or transportation costs involved.
Rebuilding and Registration: If you plan to repair the car for road use, check the local DMV requirements for converting a salvaged vehicle back to a roadworthy condition. This may include inspections and specific repair certifications.
Remember, repurchasing a totaled vehicle can be financially risky due to hidden damages or repair costs. It’s essential to weigh the cost of repairs against buying a similar new or used vehicle. Additionally, discuss with your insurance provider if the vehicle can be insured after being rebuilt.
