Determine Market Value
Every vehicle has a fair market value regardless of its preloss actual cash value or its current condition. At MAST, with our experience we consider many of the variables affecting an auction value that aren’t easily measured, and some that can’t be detected without an on-site review.
The bulk of an insurance company’s salvage inventory is valued closer to the overall average ACV. Rather than concentrating on just the small percentage of high ACV vehicles, it only makes sense to assess fair market value on each piece and record that amount as a minimum acceptable bid to maximize returns. This gives the auctioneer an idea of a good starting point as he opens the bidding, and a target amount to shoot for. Starting too low increases the number of bids to get to the target, and drags out the length of bidding time. Buyers tend to drop out before the target is reached as a perception of too high a price is created if bidding takes too long.