Why do Overseas Buyers buy Copart or salvaged S550’s?

Cobra Jet

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I’ve seen quite a few threads on here where Overseas M6G members are rebuilding salvaged S550’s from Copart or other U.S. based salvage facilities.

The bigger question is why buy a salvage S550 to ship overseas to rebuild?

Isn’t the shipping/import fees extremely expensive?

Isn’t it harder to find S550 crash parts or retail replacement parts to rebuild the salvaged car?

Maybe I’m missing the value in the transaction somehow - but can anyone explain the “why”?

I mean in many instances the Overseas Buyer is getting a totaled vehicle with a salvage title AND doesn’t know the full extent of the damages (hidden) until getting the car off the dock.

Is there really a savings overall?

Do salvaged U.S.Titles somehow get turned into good titles in another Country - or are titles not needed overseas in some Countries (asking because I don’t know)?

So what’s the scoop?





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cbdallas

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I've watched a few videos about something similar to this. They can "fix" them and actually manage to sell them at a profit overseas, because their standards are......different, and nobody's shelling out 10s of thousands in labor charges. What's 'totaled' in the US is a potential great car for someone over there. They don't care if the body gaps are down to the mm, and the car crab-walks down the road. It looks good at 10 paces, and it's a newer car.
 

EFI

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Cars are alot cheaper in the US than Europe, so even after shipping it's probably cheaper for them.

Also I imagine there's alot less totaled Mustangs to choose from in Europe than in the US, so the choices are scarce.
 

Twin Turbo

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Sadly, many of these will be sold without disclosing the history.....but they will be sold at, or just below market value for a "clean" car. Most prospective buyers will not have heard of Carfax and so will be ignorant of any accident damage. I've seen them advertised in the UK as having "clean HPI". HPI is our equivalent of Carfax, and it only takes into account its brief time in the UK.

Import S550s into the UK are rare though. Most purchasers will be wanting a RHD car with a UK warranty, but I have seen a couple of LHD S550s for sale.

Similarly, we have a much larger number of S197s being imported into the UK from the Middle East. These too usually have dubious history. I'm aware of at least one that was bought and wasn't fit to pass our annual roadworthiness test. The seller had to strip the car and sell it as parts as it was just too far gone to repair economically.

So, bottom line is these can be bought and repaired cheaply, and sold on for a similar price to clean cars.
 

I Bleed Ford Blue

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So they basically are trying to sell a f'd up car at clean car prices and scamming the buyer. I guess dishonest people aren't just limited to the U.S.
 

shogun32

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I guess dishonest people aren't just limited to the U.S.
damn it, one more reason not to cheer our #1 status...
I would have thought a salvage car was worth more than it's value as parts in an overseas market.
 

XS

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I often wonder if people from other countries think that about us here buying things like JDM cars, European cars we never got, etc. I know a guy who bought an R32 Skyline from one of the more "reputable" importers on the West Coast. Original mileage was supposed to be 45k miles. When the car finally arrived we were looking at it and things like the brake pedal, seat bolsters, and steering wheel had considerable wear. I said, man, I think they rolled the odometer back on this thing? Did a compression test and leak down test and two of the cylinders were weak. It became obvious this car had more like 145k miles than 45k miles. When we got under the car we noticed overspray on undercarriage parts that wasn't quite the factory color. After further investigation it became clear this car had been in a wreck too at some point. In the end he took the evidence back to the import dealer and actually managed to get them to buy it back. But someone in Japan was probably thinking, someone in the US wants this pile of shit?
 

Polski

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So I can give you guys some info about this because I am buying cars on copart and IAAI.
The reason why people (like me) buy these cars and many others, not only limited to Mustangs, is because you buy it pretty cheap, send it to EU, fix it and sell with a profit.
As someone stated that the cars will be sold without disclosing the history, people buy a carfax and check the photos on the auction before purchasing a car like this or any car from the US, so it is impossible to hide anything at this point from the buyer. Unless, you really want to and you are a sneaky and really smart f***er.
I sold many cars in Poland and always had photos from the auction, photos from pick-up and photos from the port in Germany + carfax provided to the potential buyer. Also, I do not buy cars that are a piece of crap. I buy something that can be easily and safely fixed.
Additionally, I always buy and keep a car for myself when I am going back for a few weeks or months, so I can drive it and then sell it. Most of the cars I import to Poland, my family drives them until they are sold, so sometimes weeks, sometimes months. Also, you have to be a typical "seller" if you buy flooded cars, I do not play with that shit.
It is very risky to buy a car only looking at a few photos. I had situations that it was "Run and drive" but after receiving, there was no oil and engine was seized. So you risk thousands of $$$ when dealing with this because auction houses are sneaky too. They will make the car look really nice for photos and then "surprise moth***r" :)
Parts in EU are really easy accessible and relatively cheap, so no problem with fixing Mustangs. The main problem is taillights, you need to get the "fixed" to have orange or amber "blinkers" - there's a few companies that do it, for example I have a 2013 Mustang and I need to get the lights done. The cost is around $550.
If you guys need any more info or just want to know more, you can ask.
 

WD Pro

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Pinched from another thread :

This Beauty was for sale in England last week on eBay.
2018 Ecoboost which was stated as "in perfect condition" - from the interior picture I would disagree
Grim1.jpg
Grim2.jpg
Grim3.jpg
LHD import in the UK.

Not a high spec or special that cant be bought over here (e.g. Shelby).

Looks like none of the interior gaps line up.

Front body lines look dubious.

I cant think of any reason to take a perfectly good front end off and add that new one.

I would be very sceptical of that car ... :frown:

WD :like:
 

Pittpa

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Tariff's?
I sold a PT cruiser through a broker in Seattle to a buyer in St. Petersburg, Russia. He said there was a 20% (or was it 40%) tariff, it that is the right term, on new US car imports in Russia.
 

Polski

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Tariff's?
I sold a PT cruiser through a broker in Seattle to a buyer in St. Petersburg, Russia. He said there was a 20% (or was it 40%) tariff, it that is the right term, on new US car imports in Russia.
So if you want to import to Poland - 23% + 18.6% + 10% of the whole value (car + auction fees + broker fees+ transport, both land and sea) BTW 18.6% if the engine is above 2 liters, below you pay 3.1%
 

Pronichkin

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When my 2019 GT Convertible was hit by mountain lion, the damage was big, but I would say it was scoped. Of course, one would have to replace the grill, the hood, maybe couple other panels, and do some work on the interior since the airbags were deployed. However, all the drivetrain and electronics were still fine. Let alone sides and rear. At least, the car was drivable and did not complain. So, I was honestly expecting that insurance would get the car repaired for me.

Instead, the car was deemed a total loss. I figured that it's because of the high cost of labor in the US. I would imagine, in some other place with cheaper labor and/or parts, it might be economically feasible to restore that car. And I actually hope someone would do that, instead of breaking it down for parts. It was a good car, and it deserves a second life.

Update: here's a link, it does not seem to be sold even after 3 months :(

https://www.copart.com/lot/57684080/2019-ford-mustang-gt-ca-redding
 
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Cobra Jet

Cobra Jet

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  • Thread starter
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So I can give you guys some info about this because I am buying cars on copart and IAAI.
The reason why people (like me) buy these cars and many others, not only limited to Mustangs, is because you buy it pretty cheap, send it to EU, fix it and sell with a profit.
As someone stated that the cars will be sold without disclosing the history, people buy a carfax and check the photos on the auction before purchasing a car like this or any car from the US, so it is impossible to hide anything at this point from the buyer. Unless, you really want to and you are a sneaky and really smart f***er.
I sold many cars in Poland and always had photos from the auction, photos from pick-up and photos from the port in Germany + carfax provided to the potential buyer. Also, I do not buy cars that are a piece of crap. I buy something that can be easily and safely fixed.
Additionally, I always buy and keep a car for myself when I am going back for a few weeks or months, so I can drive it and then sell it. Most of the cars I import to Poland, my family drives them until they are sold, so sometimes weeks, sometimes months. Also, you have to be a typical "seller" if you buy flooded cars, I do not play with that shit.
It is very risky to buy a car only looking at a few photos. I had situations that it was "Run and drive" but after receiving, there was no oil and engine was seized. So you risk thousands of $$$ when dealing with this because auction houses are sneaky too. They will make the car look really nice for photos and then "surprise moth***r" :)
Parts in EU are really easy accessible and relatively cheap, so no problem with fixing Mustangs. The main problem is taillights, you need to get the "fixed" to have orange or amber "blinkers" - there's a few companies that do it, for example I have a 2013 Mustang and I need to get the lights done. The cost is around $550.
If you guys need any more info or just want to know more, you can ask.
Grest response, appreciate the dialog!

So what you are doing is the honest way - you’re providing the potential Buyer with any facts and images you have of the vehicle you are importing, repairing and selling.

That’s good, at least you are honest with what you are doing, you’re good at what you do and having fun making a profit at it.

So can you give us an example of say how the process works for you? Like just 1 example of any type of car/truck.

Do you have like potential Buyers who want XYZ vehicle and you look, see one and then supply them with the pics/info of it before you repair - and they agree to buy? Or are you just buying what you know will sell easily after being repaired and just get it, fix and list it, and the buyers come to you at that point?


How much do you get hit with for import fees alone, does it vary by vehicle type or is it just a standard fee?

When you get one of those vehicles where an auction house was not 100% honest about its drivetrain and the engine is seized - do you take a rather large hit now knowing you not only have to fix the crash damages, but now source an engine? Does that put your profit into the red, like loosing money on the deal?

I just find it interesting and was very curious as to why salvaged/wrecked cars (sports cars mainly) were so popular to import Overseas.

Out of curiosity - what does a S550 (or older) Mustang usually resell for over there (one that is not previously damaged)? For instance, say you saw an online ad for any year Mustang for sale here in the States and the asking price was $30k - can you still make $ on it after import fees or tariffs at that price point?

Have you bought/repaired any S550 Shelby’s?
 

Polski

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Grest response, appreciate the dialog!

So what you are doing is the honest way - you’re providing the potential Buyer with any facts and images you have of the vehicle you are importing, repairing and selling.

That’s good, at least you are honest with what you are doing, you’re good at what you do and having fun making a profit at it.

So can you give us an example of say how the process works for you? Like just 1 example of any type of car/truck.

Do you have like potential Buyers who want XYZ vehicle and you look, see one and then supply them with the pics/info of it before you repair - and they agree to buy? Or are you just buying what you know will sell easily after being repaired and just get it, fix and list it, and the buyers come to you at that point?


How much do you get hit with for import fees alone, does it vary by vehicle type or is it just a standard fee?

When you get one of those vehicles where an auction house was not 100% honest about its drivetrain and the engine is seized - do you take a rather large hit now knowing you not only have to fix the crash damages, but now source an engine? Does that put your profit into the red, like loosing money on the deal?

I just find it interesting and was very curious as to why salvaged/wrecked cars (sports cars mainly) were so popular to import Overseas.

Out of curiosity - what does a S550 (or older) Mustang usually resell for over there (one that is not previously damaged)? For instance, say you saw an online ad for any year Mustang for sale here in the States and the asking price was $30k - can you still make $ on it after import fees or tariffs at that price point?

Have you bought/repaired any S550 Shelby’s?
The process is pretty easy once you work with a broker and they "let" you use their account to bid on cars. Obviously they charge you per car (about $150) They do all the work once you buy the car. Just need to pay the invoices for the car itself and shipping and cleaning fees etc. THey literally do everything, you just need to pick it up from the destination port when it is delivered. My brother in Poland does all of that and he deals with fixing the cars etc. So We both have fun doing it.
What you need to pay is exactly what I said earlier: 23% + 18.6%.... It all depends on total invoices, no matter the car. Old cars, over 30 years are much cheaper because you only pay a 7% tax.
I usually buy cars, fix them and then list them for sale. I don't take orders because I do it as a hobby, not my primary job.
A lot of people that do the same are buying a car that is still listed for auction but a client wants it so they bid on it for them. I just buy cars that I or my family wants to drive for a little or something that I know will sell.

As it goes for "surprises" like a seized engine... You just take a kick in the nuts. I literally had a situation where $6k went down the drain and nothing I could do.

The reason why people buy crashed cars is simple: you buy it online (a 2016 S550 GT) for about 10-12K, add shipping taxes etc. It costs 20K to get it in your driveway. Then you fix it for 5-6K and the total cost is about 25K. If you buy the same on in the states for 25K (no damage) you still have to add all the shipping + import tax, fees... And remember, the higher cost of the car, the more you pay. So you can have a fixes S500 for 25K or 40K :)These are just rounded up numbers.

I did not have any Shelby's. I mainly get some S550 and S197's. Again, I get them and usually drive them for a little when I am back in the motherland lol
We also buy cars for my family (brother and dad) so they can drive something cool and different than a VW Polo with a "huge" 1.2l engine :)

I stay transparent with the cars condition because people will find out anyway and talk shit about you on FB forums. I don't need that.
 

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