Most vehicles imported from the United States and Canada are not purchased from dealers, but from specialized car auctions. This is where the real market price is formed, and where dealers find vehicles below retail value.
In this guide, we explain what auctions exist, how they differ, where beginners should buy cars, and which platforms professional auto dealers use.
Most popular
Copart / IAAI
Cars without accidents
Manheim / ADESA
Beginner mistake
Buying without analysis
How car auctions in the USA and Canada work
Vehicles at auctions are sold by insurance companies, banks, dealerships, leasing companies, and corporate fleets. After accidents, lease expiration, or write-offs, vehicles are sent to auction and sold through bidding.
- ✔ insurance vehicles after accidents
- ✔ lease returns (2–4 years old)
- ✔ dealer trade-in vehicles
- ✔ corporate and rental cars
Main car auctions in the USA
Copart
The largest insurance auto auction in the world. Huge vehicle selection and the lowest entry prices. Most vehicles imported to Europe are purchased here.
IAAI
A direct competitor to Copart. Vehicles often have lighter damage and sometimes less aggressive bidding competition.
Manheim
A dealer-only auction with vehicles coming from lease returns and trade-ins. Cars are usually in better condition and without major damage.
Car auctions in Canada
Impact Auto Auctions
The main insurance auction in Canada. Lower competition sometimes allows buyers to purchase vehicles at better prices compared to US auctions.
ADESA Canada
A dealer auction offering lease-return and trade-in vehicles. Cars are often in good condition with clearer history.
FAQ — Frequently Asked Questions
Can you buy a car from Copart without a broker?
In most cases, no. A dealer license is required to participate, so purchases are usually made through a broker or intermediary company.
Which is cheaper — Copart or IAAI?
On average, Copart is cheaper due to larger inventory, but IAAI sometimes offers better deals because of lower competition.
Is it possible to buy a car without damage?
Yes. Dealer auctions like Manheim or ADESA sell lease-return vehicles that usually have no serious damage.
What cars are the most profitable to buy?
Most dealers focus on 3–5 year old crossovers and vehicles with minor damage that can be repaired easily.