How to Buy from Copart without a License?
Most people in the USA who wish to buy a used car with a salvage or clean title would be familiar with Copart. This firm has a patented online virtual car auction technology which has made it a leader in the market of used car dealers.
Both those people who wish to get rid of their old cars and those who seek to buy such cars often use the services of this company for their own ends. Majority of those who buy cars from Copart are professional rebuilders and dealers.
For those who may not be fully aware of this, a salvage title car is one that has been deemed as a ‘Total loss vehicle.’ The simple meaning of this term is that they are so badly damaged that the cost of their repair would exceed their value.
What constitutes a total loss depends also on the laws of different states as well as the standards that an insurance company has set. Once deemed a total loss, the DMV of a state issues a salvage title which puts limitations as to who can purchase these cars. This is where companies like Copart come into play.
History of Copart
This company was founded in 1982 by a man called Willis J Johnson in the city of Vallejo, located in the state of California. It was through the 1990s that the company started growing rapidly and had four different centers in the early part of the decade.
Later on, through the infusion of private loans as well as selling of equity, the company emerged as one of the biggest salvage car sellers in the country. What made the whole company and the idea behind it revolutionary was that it created a network of salvage title car yards and connected them through the power of internet which was slowly starting to penetrate the life of modern people in the western world
Until the emergence of Copart, salvage title cars were sold by yards which existed as standalone institutions. But by launching their own virtual auction system called the Copart Auction System (CAS) in 1997, it allowed cars in yards across the country to be visible and accessible to the wannabe buyers.
Copart also created its own online platform for an auction called VB2 in 1998. Today, Copart is a company listed on NASDAQ and has a huge headquarter in Dallas, Texas.
Buying cars without a license
Are you aware that cars can be bought from Copart even by those people who don’t possess a dealer’s license? Yes, this is true. You can indeed buy a car from Copart without it.
But like most things, there are conditions and requirements for you to be able to accomplish this. Let’s explore the process by which you can come to purchase a car from Copart without having a business license in your possession.
A business license can be in the form of a dealer license, dismantler license, repairable license, etc. In many states of the USA, you need to possess one or more of these licenses to be able to purchase any type of cars. However, not everyone has the time and resources to go around trying to get such licenses. Hence, Copart has come up with a remedy to allow those who don’t possess any of these licenses to still be able to buy a car.
By becoming a member
The easiest way to get your hands on a vehicle without having to undergo the wait of getting a license is to become a member of Copart community. According to its own website, half of the vehicles in Copart’s current inventory consists of vehicles that are deemed ‘no-license-required,’ meaning that they can be purchased by people who don’t have any special license to their name. All they need is a usual government-issued ID like a simple driver’s license or passport. Armed with these documents, you can easily bid on these vehicles.
But, as stated above, the very first requirement for availing of such a service is that you should be a member of Copart. This is a very easy process which simply requires you to fill out some forms online and submit basic information about yourself. Let us provide you information about all the steps that you need to undertake to become a member:
- Go to the Copart homepage and choose the sign-up option. Alternatively, you can use their mobile app and utilize the express sign-up option
- Fill the form that requires basic and relevant information on the page that you would find yourself in and then move to the next step
- Upload an image of the ID that you have. It could be your passport or your driver’s license. Press enter and you would become a member of the Copart community
- Choose which kind of membership you want. There is two CarOptions: basic and premier. Your choice depends upon your requirements. If you seek to buy just one vehicle then basic membership would serve you purposefully. But if you seek to go beyond that, premier membership is extremely useful as it offers various types of features and additional benefits.
- After you choose the option that is most suitable, you can move forward towards the next step of placing a bid. But before that, you will be required to deposit a certain amount of money. This is to assure Copart that you are financially capable of placing a bid.
- Choose the car and arrive on the auction page where you can place preliminary bids as well
- If your preliminary bid is not successful or if you haven’t placed a bid yet, you can place one now in the virtual auction
Once all this is done, you will be able to buy the car of your choice, provided it’s a no-license-required one and your bid is successful. Do remember though, that laws regarding license-requirements for certain vehicles vary with every state. Therefore, do MakeoftheCar the relevant inquiries about the law in your state before deciding to move ahead.
There is also an option called ‘Buy it now’ which allows you to bypass the whole auction process and directly buy the car. But that option comes with its own terms and conditions and you need to MakeoftheCar yourself aware of that as well.
Bidding through A broker
Another way in which you could bid on no-license-required vehicles is through brokers. For this, you will have to surf through the list of brokers registered with Copart and choose the one that suits your requirement the best.
For this, you will need to visit the websites of these brokers and do some research on them. Then only will you be able to understand who is best suited to your needs and who can serve you best? While you search for the ideal match, also find out whether the broker you are thinking about contacting is eligible to bid in your state.
Also, be careful enough to read through the terms and conditions of the broker and understand the payment procedures. It’s also highly preferable to establish direct contact with the broker through phone or email to have everything properly understood and straightened out.
After everything between you and broker has been fixed and the formalities have been completed, you would receive a special Member Number (under that broker) which would enable you to bid yourself. Now, you can sign in with this number and start using the services of Copart in the same way that a person who has licenses would.
So, these are the two main CarOptions that confront you if you wish to get vehicles without possessing a special license.
If you do intend to use a broker to buy a car, you should at least be familiar with the concept of who is a broker. The brokers that we are referring to in this context are those who are helping those without business licenses to buy a used salvage title car.
Copart has compiled a list of brokers who have been approved by the company to assist you in buying a used car. To find out which one is most suited to your needs, just search among the inventory for the vehicles you deem fit for yourself. Try and bid on them and you would be automatically directed to the list of these approved brokers.
Brokers have no agreement or arrangement with brokers that are going to apply to you. This means that you would be dealing with the brokers directly and not with us. While approved by us to act as intermediaries, these brokers have an independent existence and therefore you are bound by their rules and regulations and not ours. So, be aware of all the terms and conditions they have for their clients.
Watch Below About Copart
As mentioned earlier, the regulations regarding possession of no-license-required vehicles vary state-by-state. Roughly, we can divide all states of USA into three categories on the basis of license-related requirements.
- Those where no business license is required for possessing vehicles in the no-license-required category. States falling within this category are:
- North Dakota
- South Dakota
- North Carolina
- Rhode Island
- Those which have a mix of requirements related to licenses for bidding on certain vehicles. Very often, the prerequisites for buying a salvage title vehicle and a clean title vehicle are different. States falling within this category are:
- New Jersey
- Those states where possessing business licenses is necessary even for buying these kinds of vehicles. States falling within this category are:
- New Mexico
- South Carolina
- West Virginia
- New Jersey
- New Hampshire
- New York
It must be remembered, however, that there are unique aspects and intricacies to the licensing laws in every state. Our classification is only a rough one and to thoroughly understand what licensing requirements apply on what type of vehicles as well as the various other nuances of the law, you must study the law yourself or seek advice from specialists.
Creation of licensing laws
These laws, as inconvenient as they may be, have to be adhered to. They are created by states and their administration and not Copart. The company is merely adhering to it and trying to find ways through which you can get a car without having to undertake the trouble of getting a business license.
But there are certain states where you just can’t do without it. In those cases, we would be completely unable to help you out any further.
Other things to remember
There are a few more rules and regulations that you need to keep in mind before progressing further in your quest to buy a salvage and clean title car without a license. Some of these main ones are:
- When you get a basic account on Copart, a certain amount is registered as your bidding power.
- The default amount in such cases is $1000. This effectively means that you would be able to MakeoftheCar a bid of up to $1000 and not anymore.
- Those who have a premier account can place a bid that goes higher than $1000.
- Those who do not have a premier account and want to bid higher without creating one do have one option. It is to deposit money with Copart that is in proportion to the amount that you want to bid. Usually, the deposit is required to be 10% of your bidding amount and is kept on the file so that everyone can be certain of your buying capability.