Copart was founded in 1982 when Willis J. Johnson opened a single landfill in Vallejo, California. Fast forward 37 years, Copart Inc is now the global leader in online vehicle auctions and a leading source for vehicle remarketing.
At all times, auctions selling various goods have taken and still take a certain percentage for their services. US automotive sites are no exception. What do auctions require payment from buyers for and how to calculate it?
Let's try to figure it out using the example of the American auto auction Copart.
The Significance of Auction Commissions
Initially, the main commission amount depends on:
- buyer's license - is it an individual or a legal entity;
- volume of purchases – up to 25 cars per year or more;
- type of equipment - standard vehicle or heavy;
- payment method (secured and unsecured).
The commission for large vehicles is slightly higher than for a passenger vehicle; individuals also pay more. A secure payment method is a bank transfer, an unsecured one is payment by credit card. And for the second method, the buyer will be charged a slightly higher percentage. The minimum commission is paid by legal entities with large volumes of purchases and payment method through a bank - “Class A license.”
Next we will look at all the components of the commission fee that make up the final amount, taking into account the legal entity tariff for standard cars.
What Makes Up Copart Fees
1. Commission fee (Buyer Fee)
How much are copart buyer fees? The largest payment, which depends on the value of the lot at auction.
It is calculated according to a table with changing coefficients, where the first number is the cost of the car, the second is the commission copart membership fees.
$1.000 - $1.200 – 200$
$1.800 - $2.000 – 300$
$3.000 - $3.500 – 400$
$4.500 - $5.000 – 600$
$10.000 - $15.000 – 700$
More than $15.000 – 5.5% of the price of the car.
The principle here is simple - the more expensive the car, the larger the commission.
2. Gate Fee
Estimated as a flat value of $59.00 and applies to all Copart lots. It covers administrative costs and transportation of the vehicle from storage to the auction site for shipment.
The Most Common Commissions on Copart
Storage fee
Depends on the geography of each site and begins to accrue if there is no payment for the lot on the 3rd business day. On average, it can range from $5 to $30 for each day of downtime, the further it goes, the more expensive it is.
Late payment fee
The vehicle amount and all applicable charges must be paid within 3 working days of purchase, including the day of sale, to avoid a $40 fee per vehicle.
Vehicle Relist
If the sale price and all applicable fees are not paid by the close of business within 6 calendar days (including weekends and holidays) after the auction, the vehicle will automatically be relisted and the Bidder's account will be charged a relisting fee. payment.
The relisting fee will be equal to: (a) 10% of the vehicle's starting price; or (b) $250, whichever is greater. All flipping fees must be paid in full within 14 calendar days of the invoice date. A member's account may be suspended until payment is made in full. If flipping fees are not paid within 14 calendar days of the invoice date, Copart will apply any other payments made by the member to the unpaid flipping fee first.
For example: Member incurs a flipping fee of $250 but does not pay this within 14 calendar days of the invoice date. Meanwhile, the Bidder won and paid for another vehicle at auction. The member pays Copart $2,250 for this vehicle. Because the Member has an outstanding re-registration fee, Copart will set aside $250 of the amount paid for the vehicle to cancel any copart buying fees due. The remaining amount will be applied to the purchase price of the vehicle.
Online application fee
Kiosk Preliminary Bidding and Live Bidding
Preliminary booth bidding is available free of charge in most locations. Participants are responsible for requesting instructions from Copart on where and how to submit a valid pre-entry at the kiosk.
Non-Kiosk Preliminary Bidding and Live Bidding
Copart locations may provide Internet access through computer terminals available at the front desk. These terminals are separate from the pre-bidding kiosks. All bids placed through these terminals or Members' computers, smartphones, tablets or other bidding devices will be subject to copart buyers fees based on the amount of the highest bid.
Copart Joining Fee
There is a one-off non-refundable registration fee of just $100 and an annual membership renewal fee.
Vehicle Inspection Appointments
Thanks to the virtual viewing service, you can now look at the vehicles you are interested in from the comfort of your own home, office or while traveling. Book a 10-minute slot to view an individual lot of your choice at any of USA operating centers. It costs just $10 per car and the virtual viewing is done via a WhatsApp video call.
To reserve your place, call Member Services. Your appointment must be booked at least 24 hours in advance. Please note that vehicle viewings cannot be carried out on weekends or holidays.
Safe and Unsafe Payments to Copart
Credit/debit cards are accepted at all Copart locations. The person paying for the item will be required to provide proof of identification, which must match the name on the card that will be used to pay. Venues do not accept payments over the phone. To pay online, you must be the primary account holder or your name must be listed on the account. The name on the credit/debit card must match the name of one of the account holders. Copart does not accept installment payments for credit card payments. Only one card can be used for one payment.
The most popular payment methods:
- Bank payment
- Fast payments
- Bank transfer
- International bank transfer (IBAN)
- Apple Pay and Google Pay
- Debit card – subject to acceptance
- Credit card – one credit card per transaction
- PayPal
Buyers Commission for a Standard Vehicle Type
They are determined by the final price of the car and added to the total amount. If any portion of the payment is received through non-secure payment methods, the total cost of copart fees will be calculated as using non-secure payment methods. Standard vehicles are all other vehicle types.
Fee A
Vehicle payment and all copart auction fees must be paid within 3 business days of purchase, including the day of purchase, to avoid an additional $50.00 fee per vehicle.
Fee B
Storage rates may vary by site and can be found on site pages.
Fee C
If the lot is not paid for within 8 calendar days, including the day of sale, the car is automatically re-listed for auction. Cancellation copart storage fees are 10% of final item price OR $600, whichever is higher.
Fee D
Members who purchase vehicles through Copart affiliated financing companies will be charged an additional $69 copart member fees.
Buyer's Commission for a Heavy Vehicle Type
Heavy-Duty Vehicles are all industrial vehicles, medium-duty trucks/vans, heavy-duty trucks, box trucks, and trailers that can be found using the Vehicle Search tool.
Fee A
Vehicle payment and all copart buyer fees must be paid within 3 business days of purchase, including the day of purchase, to avoid an additional $50.00 fee per vehicle.
Fee B
Storage rates may vary by site and can be found on site pages.
Fee C
If the lot is not paid for within 8 calendar days, including the day of sale, the car is automatically re-listed for auction. Cancellation fees are 10% of final item price OR $600, whichever is higher.
Fee D
Members who purchase vehicles through Copart affiliated financing companies will be charged an additional $69 fee.
Virtual Bid Fee
All bets placed via any electronic device are subject to this copart bidding fees, which is based on your maximum bet.
Here are also sample values for understanding this value (car cost – fee amount)
- $100 - 500$ – 29$
- $1000 - $1.500 – 59$
- $1.500 - $2.000 – 69$
- $4.000 - $6.000 – 89$
- More than $8.000 – $119
As you can see, this number can have a maximum value of $119, with a purchase price in the US starting from $8.000.
Additional Expenses to Consider
Environmental fee
There is a $10 charge for each item sold to cover the cost of proper handling and care in an environmentally friendly manner.
FAQ
What are Copart fees?
Copart is an online vehicle auction site that allows buyers to bid on and purchase vehicles from locations around the world. Buyers should consider several copart fees after winning bid when purchasing a vehicle through Copart.
When and how do I pay Copart fees?
Copart offers several payment options, including payment by bank transfer, money order, cashier's check, and credit/debit card (domestic accounts only).
Are there additional fees to consider when buying through Copart?
Members who purchase vehicles through Copart-affiliated third party finance companies will be charged a $69 administrative fee.