Purchasing a car from Copart, one of the largest online auto auction platforms, involves several layers of costs beyond just the winning bid. Copart specializes in both salvage and clean-title vehicles, offering a wide variety of cars, trucks, motorcycles, and more. However, many buyers are unaware of the fees associated with buying a vehicle at auction. These fees can significantly increase the final cost of the vehicle, so it’s important to understand all the charges you may encounter when buying a car through Copart.
Here’s an in-depth look at each fee you might come across during the car-buying process:
The Buyer’s Fee is a mandatory fee based on the final sale price of the vehicle. This fee is structured in tiers, meaning the more expensive the vehicle, the higher the fee. Copart differentiates between basic and premier members, with premier members benefiting from slightly lower fees.
| Sale Price | Buyer’s Fee (Basic Member) |
|---|---|
| $0 – $99 | $35 |
| $100 – $499 | $85 |
| $500 – $999 | $135 |
| $1,000 – $1,499 | $185 |
| $1,500 – $1,999 | $225 |
| $2,000 – $4,000 | $285 |
| $4,000 – $5,499 | $350 |
| $5,500 – $7,499 | $450 |
| $7,500 – $9,999 | $475 |
| $10,000+…………………. | Increases progressively based on price. |
For premier members who pay an annual membership fee (covered below), the buyer’s fees are reduced slightly, making it more attractive for frequent buyers or those purchasing higher-value vehicles.
This fee applies when you place a bid online, which is the most common way to participate in Copart auctions. The Internet Bid Fee is added to the buyer’s fee and depends on the final sale price of the vehicle.
| Sale Price | Internet Bid Fee |
|---|---|
| $0 – $99 | $0 |
| $100 – $499 | $29 |
| $500 – $999 | $39 |
| $1,000 – $1,499 | $59 |
| $1,500 – $1,999 | $69 |
| $2,000+…………………… | $79+ |
This fee is relatively minor compared to other charges but can add up, especially if you’re bidding on multiple vehicles or higher-end cars.
The Gate Fee is a standard fee applied to every vehicle sold through Copart. This fee covers the administrative cost of processing the vehicle after the sale, including moving the car within the yard and preparing it for pick-up or shipping.
Regardless of the vehicle’s sale price, this fee is fixed and non-negotiable.
The Documentation Fee varies depending on the location (state or country) of the auction. This fee covers administrative tasks related to processing the vehicle’s title and any associated paperwork. Documentation fees are typically modest but can vary significantly by location.
This fee ensures that the vehicle title is properly transferred and prepared for registration.
Sales tax is another critical cost to consider when purchasing a vehicle. The sales tax rate is determined by the state or jurisdiction where the vehicle is sold or registered. Copart will collect the sales tax at the point of sale, but buyers should be aware that tax rates vary widely across the U.S.
For international buyers, customs duties and taxes in their country may apply, depending on import laws.
If you do not have the appropriate dealer’s license to bid directly on Copart (which is often required), you’ll need to use a third-party broker. Brokers place bids on your behalf and charge a fee for their services. Broker fees typically range from $200 to $400 per vehicle, depending on the broker and the value of the vehicle.
This fee is separate from any Copart charges and must be paid directly to the broker.
Once you win a vehicle, you have a limited amount of time to remove it from the Copart yard—usually between 1 to 5 business days. If you don’t pick up the vehicle within that time, Copart will charge you a storage fee.
If you plan to ship the vehicle or arrange transport, it’s essential to coordinate this quickly to avoid accumulating storage fees.
Payments for purchased vehicles must be made within 2-3 business days. Failure to pay within this time frame will result in a late payment fee, adding to your total cost.
It’s important to stay within the payment window to avoid these additional charges.
If you fail to pay for a vehicle or decide not to complete the purchase, Copart will charge a relist fee. This fee is charged to cover the cost of relisting the vehicle in another auction.
This fee can be a substantial financial penalty, so be sure you are committed to purchasing the vehicle before bidding.
Once you’ve purchased a vehicle, you’ll need to arrange transport to your location. Copart offers in-house transportation services, or you can use third-party shipping companies. The cost of transport depends on the distance, vehicle size, and shipping method.
If you are an international buyer, you will also need to factor in freight and customs fees for shipping the vehicle overseas.
To participate in Copart auctions, you must first register for a membership. There are two membership options:
For frequent buyers or those looking to bid on higher-priced vehicles, the premier membership can save money in the long run.
If you’re an international buyer purchasing a vehicle to ship overseas, there are additional costs to consider, such as export fees, customs duties, and shipping charges.
Let’s assume you win a bid on a car with a final price of $2,000. Here’s a rough breakdown of the associated costs:
| Fee Type | Cost |
|---|
| Fee Type | Cost |
|---|---|
| Winning Bid | $2,000 |
| Buyer’s Fee | $285 |
| Internet Bid Fee | $59 |
| Gate Fee | $79 |
| Documentation Fee | $75 |
| Sales Tax (7%) | $140 |
| Transport (optional) | $500 |
| Total Estimated Cost | $3,138 |
In this scenario, the total cost of buying a vehicle through Copart is significantly higher than the winning bid due to additional fees like the buyer’s fee, gate fee, internet bid fee, and sales tax. Transport costs would add even more if you’re not able to pick up the vehicle in person.
Buying a vehicle through Copart can be a great way to find deals on cars, trucks, and other vehicles, but it’s essential to be fully aware of the various fees involved. Beyond the winning bid, buyers must account for buyer’s fees, internet bid fees, gate fees, sales tax, and potential transport costs. Additionally, factors like broker fees, storage fees, and late payment penalties can further increase the total cost.
By understanding these costs upfront and budgeting accordingly, you can avoid surprises and make more informed decisions when purchasing vehicles through Copart’s auctions.