Is Copart A Huge Scam?

[AusTruck]

Seen the Copart.com ads at just about every NHRA telecast and decided to visit the website and see what its all about. Saw a few vehicles I might be interested in, right now its just motorcycles.

I went and registered to bid, easy enough procedure. When I went to bid on a vehicle, I got the message that I needed to be a "Registered Broker" or "Market Maker" in order to bid. Well, I'm just a guy that restores old cars, trucks and motorcycles. So I figured ok, what's a Registered Broker or Market Maker?

Clicking further on the Copart.com website, these folks are basically middle men who charge you from $100 - 300 (non-refundable, per year in most cases) just to register with them, then you have to bid through them, and then they charge you some % of the transaction, usually 3% or more. Some require you send money to them in advance of bidding, or register a credit card with them.

So I'm thinking if I do all this and bid on something local (Texas or surrounding states), and go get the vehicle myself, just what do these bozos do to earn their piece of the action? Maybe make $500 or more for just sending Copart a check and telling me I can go get my vehicle? I understand there may be a bit of paperwork,,,,but $500 or more for some minimum-wage clerk to handle a bit of paperwork sounds unreasonable. BTW, most of these Registered Brokers or Makers have large disclaimers that they don't have any liability in the transaction, in other words they're not guaranteeing or confirming anything about the vehicle. In other words, Caveat Emptor big time.

When you start to tack those fees onto a sale, it ain't such a bargain any more.
I'm thinking that Copart is some business reaction to the increasing number of flakes bidding on stuff on EBay and never paying. I've never been scammed on EB, but I have had several occasions where I've heard a litany of excuses from buyers as to why they can't send me the money they submitted for a winning bid. Seems to me that many of the insurance companies listing vehicles on Copart want some kind of assurance that the winning bidder isn't a deadbeat.

Or is Copart just an internet version of the local auto auctions that Joe Average can't get into unless he's got some friend with a business license? If so what are they doing advertising to the general public?

[MVHandy]

I looked over their website too, it looks like it's basically an internet version of the old dealer only auctions. There is a FAQ section that outlines what you can or cannot bid on based on the state law where you or the auction are located.

Most of the stuff requires a dealer license and the "market makers and "registered brokers" are basically license holders who will bid under their license on your behalf. This service is all they do for their fee although some provide inspection, shipping assistance and other services for an additional fee.

Mark

[dwcsr]

Copart is like ebay for the auto business. Generally you need a business license or in Texas a Sales tax ID and dealers license. They charge you for bidding and they charge the seller for listing. What they do for you is list a vehicle that you would otherwise have no way of knowing about. They advertize and promote the vehicles and they get some particulars that you would have to try and dig up on your own.

If you have days on end to waste then you could go slogging through the junk yards and insurance lots looking for a vehicle you may make some money on then its to expensive. But if you want to look from the comfort of your office or home and get good info on a particular vehicle then adding 3% plus a small fee on a car I can buy, fix and resell for a 50% profit then it really seems cheap.

Copart and the like don't want the consumer business for the very reason you don't like it. They are for dealers and rebuilders, not restorers or occasional fixer uppers, where a few hundred a year and 3% of a sale is just the cost of doing business. I have a guy next door to me that buys wrecks and fixes them , He just got a 2001 15 passanger van for $800 that had 4k in damage and retailed it after repairs for $7500. In his business its well worth the price of coparts fees.

[Shane]

multi-level marketing scheme ... think Amway ... 'cept on the Internet and it deals with cars, trucks & bikes instead of soap, wax and vitamins.

[LONGHAIR]

How they run their business is in fact, their business.....but the way they advertise makes it seem like an average joe can bid. It seems deceptive to me.

[70BLAZERX2]

Unless you live in NC there all of the copart's are open to the public and a basic member can buy in that state. SC was that way untill they changed the law last year.

I bought a wrecked 1993 S10 in SC from copart..yes i got it for $125..

after fees and gas to go get it..would up costing my $750...what a rip off.

fees and taxes will get you there...right out COPART SUCKS!!

google it and you will see a ton of complaints..Now as they say..Anyone can buy..well you get $25 from lets see 200,000 people from adverstising it..thays alot of money in someones pocket.

Also if you watch the live auctions..if you are a basic member you can...\

The home office in Calif. will bid on the cars to bring more money..Yes it is a scam.

go to IAAI.COM Thats where i bought my "project 4.3 SS" in the 88-98 truck board at ..

[evilways]

Originally Posted by 70BLAZERX2

Unless you live in NC there all of the copart's are open to the public and a basic member can buy in that state. SC was that way untill they changed the law last year.

I bought a wrecked 1993 S10 in SC from copart..yes i got it for $125..

after fees and gas to go get it..would up costing my $750...what a rip off.

fees and taxes will get you there...right out COPART SUCKS!!

google it and you will see a ton of complaints..Now as they say..Anyone can buy..well you get $25 from lets see 200,000 people from adverstising it..thays alot of money in someones pocket.

Also if you watch the live auctions..if you are a basic member you can...\

The home office in Calif. will bid on the cars to bring more money..Yes it is a scam.

go to IAAI.COM Thats where i bought my "project 4.3 SS" in the 88-98 truck board at ..

I just checked out IAAI and holy crap has anyone seen the 72 on there. https://www.iaai.com/Vehicles/Vehicl...orLoginDetails
Sorry to somewhat jack the thread.

[68C15]

sounds a lot like www.crasedtoys.com

[fastwillie 696969]

i never did like that bernstein kid LOL

[57NAPCO]

Just bought a wrecked car off co part. It's a big ripoff!!!!! No where do they make clear the hidden charges. Bought the car for 2400 bucks, they added on another 500
Posted via Mobile Device

[Sub-versive]

Sweet, a zombie thread.

Since it's here, I'll share my experience.
When an intoxicated Aussie t-boned and totalled my Ranger, my insurance offered it back to me for $600, I said nope and they sold it to copart for $1150. Copart listed it for $2200.
The frame was totally bent from behind the extended cab forward, engine pushed toward the passenger side, no good anything on the front end. I can't imagine someone trying to rebuild it. Copart listing it for that much was insane.