It is likely that some bargain hunters may want to scoop up a slightly imperfect car for a reasonable discount. You may think that insurance companies may have a used car division where they sell-off damaged used cars, do you? Well, not exactly. There are 2 potential choices for a prospect:
Insurance companies do not deal with selling damaged cars directly, but they have tie-ups with used car companies, and sell their damaged vehicles to them (this is quite rare). The used car dealership may then repair the vehicle, make it drive worthy and then put it up for sale on the market. This is however extremely rare, as an insurance company will likely only sell-off totaled cars, and dealerships will not want to put their hand in repairing a totaled vehicle. Due to this dynamic, insurance companies will more than likely only sell their vehicles to either auction houses or scrapyards.
As mentioned earlier, used car dealerships will most likely not buy a car from an insurance company as insurance companies mostly sell-off totaled cars, and dealerships are generally not interested in investing in a totaled car. The only choice that remains now is that the insurance company then sells their damaged cars to a junkyard or an auction house.
A prospect may check out a junkyard or an auction house to scoop up a deal but rest assured most vehicles there are not drive worthy. Perhaps a motor enthusiast can scan through such an environment to experiment with such a car, but nothing more.
These cars are usually bought up for their spare parts, as some of the spare parts are operational and are bought with the intention to resell. Used spare part stores usually partake in such deals. Regular buyers generally will not engage in the buying of such a vehicle for a variety of different reasons.
Mentioned within are a list of the notable auction houses in India:
Mentioned within are a list of the notable scrapyards in India: