Manchester-based National Car Auction has launched a new closed-auction website helping drive ‘best price’ for a range of service providers involved in the auto salvage process.
Salvage manager Lee Baty said extensive trials have now been completed on the website which will benefit insurance companies, vehicle bodyshops, accident management companies and salvage agents. It is now live with open auctions ready for bidding at www.nationalauction.co.uk
Lee said a multitude of factors can influence the true price of a total loss, or ‘written-off’ vehicle. A large contributing factor involves the geographical location with certain types of vehicles selling significantly better in certain areas of the UK.
National Car Auctions panel of salvage agents are fully registered and insured for the disposal of salvage, and can provide End of Life certification where appropriate. They have full UK coverage and can typically collect a vehicle within 24/48 hours. From the initial listing of the vehicle to final disposal, the process usually takes less than five days.
“The salvage matrix pricing works to an extent but can lead to many under-priced vehicles going into the system,” said Lee. “It was important to our business model to ensure we have full access of the UK. Differing demographics mean certain marques of cars can sell much better outside their area, often achieving considerably more than a local salvage agent would pay via a matrix. The closed auction website allows us to attract nationwide interest and drive maximum value for salvage.
“The situation remains the same for the agents who must take the ‘rough with the smooth’ when it comes to buying from an insurer’s salvage matrix. The formula for calculating the price of salvage is typically derived from the category and pre-accident value of the car.
“For example, buying £2000 worth of vehicle salvage could mean a BWW 3 series hit in the back, with loads of useful parts in the front, interior and engine to sell. Equally it could mean a VW Golf with panel damage, easily repaired. Both of these vehicles would be valuable salvage and likely to earn considerably more than the £2000 buying price.
“At the other end of the scale the £2000 might also be for a Subaru Forester which has rolled, with no useful left and so rare that unlikely to be a good seller. The salvage agent may make a loss in this particular case.”
Lee said the ‘closed auction’ process removes risk. Salvage agents who desire the BMW or Golf in the above example have the option to bid more, in turn mitigating the insurer’s loss. Likewise, a Subaru specialist at the other end of the country might bid more for the rare Forester, again helping the insurer.
“The insurer has nothing to lose – they are guaranteed the minimum value from their salvage matrix, but for the sake of putting it through National Car Auctions they may make significantly more,” said Lee.
“We offer a complete loss management service which benefits everyone. Insurers get the best price for their total-loss vehicles and the salvage agents get access to their preferred genre of vehicle, so it’s a win-win situation for everyone.”
For more information visit www.nationalauction.co.uk or call 0333 700 4477.