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Tetyana Yermolenko
Correspondent
Is it safe to buy cars from US auctions?
Imagine: a BMW X5 for the price of a mid-range sedan, or a Tesla Model S cheaper than a regular “German” on Kyiv car markets. And all this is actually possible thanks to American auto auctions, where hundreds of thousands of cars end up every day: from perfect leasing cars to slightly battered insurance cases.
Over the past five years, the number of Ukrainians buying cars in the US has tripled. The reason is simple: even with all the costs of delivery and customs, they save 15-25% compared to the local market. But how to avoid falling into the traps of the overseas auto business – the editorial team of Delo.ua figured out.
Why do Americans part with their cars so easily?
The cultural difference between Ukraine and the USA is enormous. If in our country a Toyota Camry is driven for 15 years and is passed down as an inheritance, then an American changes his car every 3-4 years like a mobile phone. Status, new technologies, favorable lending conditions – all this creates a gigantic secondary market.
The American car fleet is being updated so quickly that even a two-year-old car can cost 40% less than a new one. Add to this the insurance claims: in a country of 330 million people, 16,000 accidents occur every day, and most of the damaged cars end up at auction.
The system there works like clockwork: insurance companies quickly assess the damage, declare the car “total” even with minor damage (it is economically unprofitable to repair) and sell it on special platforms.
Major players in the auction business
Copart is the undisputed market leader with a turnover of $7 billion per year. It sells over 2 million cars annually at 200+ locations across the country. Copart's feature is detailed photo reports of each lot (up to 40 photos) and a damage assessment system from 1 to 5 points. You can find both broken cars for $500 and almost new premium cars with cosmetic defects.
A classic example of a successful purchase: a 2020 Tesla Model 3 with a scratched bumper sold for $18,000 instead of the market value of $35,000. After an $800 repair, the owner saved over $16,000.
IAAI (Insurance Auto Auctions) specializes exclusively in insurance cases. Here, the documentation system is stricter — each lot undergoes certification, and the risk of buying a “pig in a poke” is minimal. True, the prices are a little higher because of additional guarantees.
Participation in bidding for foreigners is possible only through intermediaries – auctions work only with American dealers who have special licenses.
Ukrainian “guides” in the American labyrinth
GrandCar has been operating on the market since 2015 and has become one of the largest importers of cars from the USA. More than 250 thousand lots appear in their database every day, and their own IT platform allows you to track auctions in real time. The company has offices in 15 cities of Ukraine, the average delivery time is 30-45 days.
GrandCar's commission is 10-15% of the car's cost plus logistics costs. Considering that dealing with American paperwork, insurance, delivery to the port, and customs clearance on your own is quite a challenge, the commission is relatively small.
But Boss Auto has chosen a different niche — expensive cars and electric vehicles. They work with cars starting at $20,000, have their own warehouses in the US and a team of technical experts. If you need a Tesla, BMW or Mercedes, they will definitely help you find it.
The platform offers customization and tuning options before shipping to Ukraine. VIP clients receive a personal manager and detailed video reports on the condition of their selected cars.
Pitfalls that await beginners
The most common mistake is underestimating additional costs. In addition to the auction price, you will have to pay a site commission ($50-500), car storage ($25 per day), transportation to the port ($300-800), sea delivery ($1,500-2,500), customs clearance in Ukraine (20% duty plus VAT), and potential repairs.
The second danger is legal nuances. In America, there is a concept called “Certificate of Destruction”: such cars are legally destroyed and cannot be restored. That is, a situation may arise when you buy scrap metal for the price of a working car.
The third trap is flooded cars. After hurricanes, thousands of cars that have been under water end up at auctions. They may look normal on the outside, but the electronics will “crumble” in a year or two. You can identify such cars by their specific smell, traces of rust in unusual places, and an overly clean interior (it was chemically cleaned after the flood).
Secrets of successful shopping
Experienced importers know a few golden rules. First, time matters. The best months to buy are February-March and September-October, when Americans are actively changing cars. The least competition is on Tuesdays-Thursdays, and morning auctions (10-12 a.m. Eastern Time) are traditionally quieter than evening ones.
Secondly, the psychology of bidding. Never place your maximum bid right away: start with 70-80% of the desired amount. The fiercest fight takes place in the last 30 seconds, when the bids fly like machine guns.
Third, always have a plan B. Track several similar lots at the same time: if you lose one, there is a chance to win another at a better price.
Alternatives to auctions for those who don't like to take risks
Not everyone likes the excitement of bargaining and the unpredictability of the result. Then it is worth looking at the usual dealer sites: Cars.com, AutoTrader.com, CarMax. Here the prices are fixed, you can bargain, and the risk is minimal. True, the savings will be smaller – 5-10% instead of 15-20%.
Facebook Marketplace and Craigslist can be a good alternative, but for those who are not afraid of risks. Here, private owners sell, you can find real gems for ridiculous money. But the risk of fraud is high, especially when working remotely.
Leasing companies sell cars wholesale after the end of the contracts. Usually these are cars in perfect condition with a full service history. The downside is that the choice is limited to popular models.
What will happen next with American imports?
Despite all the challenges of recent years, the market for American cars in Ukraine continues to grow. After the victory, a real boom is expected, as the country will need a massive upgrade of its transport infrastructure.
New trends are already appearing: demand for electric cars is growing (Tesla remains a hit), virtual car inspection technologies are developing, customs procedures are being simplified. New logistics routes are emerging that bypass traditional ports.
The American dream on wheels is becoming more and more accessible, but it requires knowledge, patience, and the right partners. The main thing is to take your time, carefully calculate the costs, and remember that the cheapest car can become the most expensive if you don't take all the risks into account.
