Insurance Auto Auction raising fees again

[atikovi]

Just got this message from IAA saying, Effective Monday, Jan. 1, 2024, we are adjusting our Service and Environmental Fees.

Service Fee: $95 per unit for vehicle handling, including vehicle pull out and loading.

Environmental Fee: $15 per unit for handling and care in accordance with environmental regulations.

In-Branch Payment: Buyers who pay in the Branch with cash, money order, cashiers check or company check will be charged a $20 In-Branch Payment fee.

Money Order Fee: Buyers who pay in the Branch using 6+ money orders will be charged a $20 fee per money order, in addition to the $20 In-Branch Payment Fee. Buyers paying with 5 or fewer money orders will not be charged additional fees.

Storage Fees: Please check with your local branch regarding the total cost of per-day storage fees.

FedEx Fee: The fee to deliver one or more titles via FedEx has changed from $12 to $20 per delivery.

What I hate the most is the service fee applies even for a car that can be driven out, and most places still require it to be forked. The buyer fees remain the same but are still ridiculous. If you're buying a $500 parts car, add another $370 in fees if you're a registered buyer. If you go through a broker, its even more.

 

[dishdude]

Buying cheap junk cars is expensive.

 

[atikovi]

Now you know why junkyard prices are so high.

 

[cptbarkey]

On top of commission? And I thought 15% buyers premium plus state tax was high. Good luck.

 

[Owen Lucas]

I hope they can use these extra fees to repave their parking lots. It's like off-roading just to get into the parking lot and forget going there when its raining, you don't know how deep some of the puddles are.

Driving in the back trying to find a car in row Q spot 99, good luck. Dodging front end loaders and driving through even larger 1-2 foot deep car sized potholes. It's not uncommon to see an AC compressor, alternator, misc. car parts buried and comingled in with the dirt. IAA makes you put a flag in your window and Copart a magnetic hat on your car to help with visibility.

 

[supton]

Not much gets cheaper with time. Thing is, you could compare it to the cost of buying new, or nearly new, or just worn but not worn out. If those are substantially more costly, then the junkyards can charge more.

Question: is more junk going through these lots, or less? I'm under the impression that quality of used cars is going down--but is qty up or down? The lack of new car sales during the great recession, followed by lack of new car sales during covid, has that lead to even junk getting more costly? Supply and demand, I'm wondering if even junk will stay costly--until new car sales somehow causes a trickle down effect where people can once again throw away cars again.

 

[PF52]

What I hate the most is the service fee applies even for a car that can be driven out, and most places still require it to be forked. The buyer fees remain the same but are still ridiculous. If you're buying a $500 parts car, add another $370 in fees if you're a registered buyer. If you go through a broker, its even more.

You could always just stick to buying from private sellers.

 

[CKN]

You could always just stick to buying from private sellers.

He doesn't make as much money with that method. Owners always want more than a junk yard......

 

[atikovi]

You could always just stick to buying from private sellers.

The exporters pay too much. I only buy 1 or 2 a year from there anyway. Private sellers seem to add up all they have spent on the car and add that to the retail value when posting a price.

 

[zzyzzx]

What were the prices before?

 

[atikovi]

What were the prices before?

I see I posted a similar rant a year ago when they raised the pricing,

Buyers fees at salvage auction increase again.

At IAA for the average buyer, a $2000 bid will result in $658 of fees.

bobistheoilguy.com

 

[GON]

A critical piece of information is missing from this thread.

IAAI was purchased by Ritchie Brothers earlier this year. No surprise a rise in fees whatsoever, the question was only when.

Ritchie paid a lot of money for IAAI, Ritchie needs to make more per transaction that IAAI was making prior to the buyout.

 

[zzyzzx]

I hope they can use these extra fees to repave their parking lots.

Dream on!

 

[zzyzzx]

What I hate the most is the service fee applies even for a car that can be driven out, and most places still require it to be forked. The buyer fees remain the same but are still ridiculous. If you're buying a $500 parts car, add another $370 in fees if you're a registered buyer. If you go through a broker, its even more.

Then lower your max bid on a parts car to make up for the increased fees.

 

[Elkins45]

Buying a wreck is kind of a gamble to begin with, even for skilled repair shops. Add increased fees onto that and it only makes things worse. It’s already harder to sell cars with rebuilt titles anywhere except BHPH lots, and with the economy tanking the market won’t be expanding.

 

[SEBZX79]

Buying cheap junk cars is expensive.

It's insane how they get away with this crap. It's cheaper to buy a 50k car at Barrett Jackson then on copart or iaai.

 

[GON]

Buying cheap junk cars is expensive.

Yes, 99 percent of the times. And a lot of time, effort, and still risk in finding and buying that one percent of cheap junk cars that is an actual deal.