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Dashub - The International Trade of Salvage

The International Trade of Salvage

Global trade is increasing with technology. American salvage cars and trucks are sold to international buyers who use brokers to help import and export these vehicles.

The international trade of auto salvage is a hot topic, to say the least. There have been considerable changes in the salvage industry in the past decade. As I have mentioned previously, in Opening the Sale of Salvage up to the Public, buying salvage was once restricted to a limited group, but due to advances in technology, especially the internet, salvage is available worldwide via online auctions like Salvagebid.com and DASHUB. Salvage is very much a global commodity, regularly bought, sold and traded internationally.

Each country establishes laws based on the import and export of salvage. You need to be aware of these laws and the procedures required if you are considering buying a salvage vehicle from another country. Bringing salvage across an international border requires the involvement of a brokering agency. Some hauling companies, like Haulmatch.com, can provide custom quotes that include both hauling and brokerage. There are associated fees, forms, and documents that need to be completed, prior to any salvage vehicle, being shipped across any border. For example, when shipping salvage from the USA to Canada you first must ensure the title history of the vehicle, by using reporting services such as Carfax. It is often a good idea to do a title search before you even purchase auto salvage internationally because if there are issues, there is a likelihood that you will not even be able to get the vehicle out of the country it was purchased in.

There are great concerns and controversies surrounding “overseas,” international buyers accessing North American auto salvage via online auctions. As salvage moves from the exclusive world of dealer only access, to accommodate the buying desire of the public, it is also opening up the industry to buyers anywhere in the world, resulting in a devaluation of our salvage. This is because international buyers are able to make huge profits by reselling these cars and can, therefore buy in quantity, at prices not reflective or profitable of the North American market. It is also resulting in a shortage of used parts that could be sold here in North America. There is the issue of safety that must be considered too, especially from the salvage industry perspective; in North America, we have strong regulation and policies in place to ensure only safe vehicles are returned to the road. Unfortunately, many countries overseas do not have a developed auto salvage industry and therefore lack best practice procedures that we follow in North America.

There have been countless suggestions about how to address international buyers in our salvage market. The days of auctions restricting access to licensed dealers only are gone, and it would be an extremely hard practice to control anyway, with the advent of online auctions. Also, consider that our economy is becoming increasingly more global in nature, and there are some advantages to such; ending international trade in salvage is not realistic. Encouraging more North American consumers to become involved in buying and driving salvage vehicles is an option. As we educate and make salvage accessible to the public there will be an increased buying force right here at home, thereby alleviating the huge drive some auction companies have on to attract international buyers. Because the vehicle salvage industries in Canada and North America have strong foundations, it becomes our responsibility to offer our knowledge of best practices to other countries, as they work to establish a framework for their own vehicle salvage industries.