Motorcycle Salvage

Everyone has heard a story or read about someone who bought a $9000 salvage motorcycle at auction for only $250. But is it real and if so, how does one go about doing it?

There are several classic methods commonly used to purchase a salvage motorcycle for bargain prices and there are an infinite variety of situations that could lead to an amazing salvage motorcycle bargain. But for the sake of reality, I will focus on the one that is the most commonly seen in the current market - the salvage motorcycle auction.

Salvage auctions are where insurance companies dump their unwanted bikes. The bikes could be wrecked, or they could have been through a flood, or they could be a theft recovery. Regardless of how they got there, it's safe to say the insurance company wants to get rid of them and if you're careful and smart, you can get a real deal.

As I caution in my article the 4 Worst Mistakes Made At A Salvage Motorcycle Auction - First Do Your Research! Now, I'm assuming that you did your research and if you haven't, go read that article before you go any further or you might find that you've purchased a dud rather than a gem.

With that out of the way, and your research complete, you show up all bright-eyed and bushy-tailed on the scheduled auction day - ready to make your first deal. If you've never been to an auction before, take some time to look around and of course check out the various bikes on which you might bid. Always have a back-up as you might not get the first one you bid on, or the second...but eventually you will go home with a two wheeler...or at least have learned enough from the experience to try again another day.

Register at the auction desk, put down your deposit if required, and find a seat. I'm often asked if it matters where you sit at an auction. The answer is yes and no. Sitting up front allows you a great view of the bike for sale, and the auctioneer is not going to miss you if you raise your hand to bid, however, if you have privacy issues, this is not the best seat as everyone behind you can see what you do, but you can't see them. Sitting in the back gives you the anonymity, but your view is limited and you might not be seen at a crucial point in the bidding process.

I prefer to sit at a mid point near the side. I can see and be seen fairly well and can move forward easily if I need to see an item more clearly. Ultimately it becomes a matter of personal preference.

Now to the bidding. There are three hot salvage motorcycle auction strategies. They are:

1. First Up. When you find the salvage motorcycle that you want, make a good sized bid. Enough to make the other bidders think your pocketbook is endless and you are determined to get the bike at all costs. (They don't know that you have a budget and we're not going to tell them.) A bid like this will make the timid buyers drop out and the more experienced buyers think it's not worth the trouble to bid against you, as you are a "crazy" bidder. This strategy has worked for me many times. I am constantly amazed by how easily people are fooled by this. Sometimes no one bids against me at all and I get the item for half of my initial limit!

2. The Penny Bid. While you may not actually be able to bid one penny at a time, the idea behind this strategy is to bid the minimum increment very quickly after your opponent bids. After a few times, your opponent may just give up, thinking that no matter what he or she bids, you will always top her. At the very least you may push the price past your opponents limit this way. Beware. I have actually had people that I was bidding against this way, come up and give me an earful for my "poor sportsmanship". People hate to lose and they hate to lose even more when it's only by a few cents.

3. Watch and Wait. This is my favorite strategy. Basically you just sit back and let everyone fight it out until the auctioneer calls out, "Going once, going twice..." - then shoot your hand into the air and bid. At this point you will only be bidding against one person and will have watched his or her bidding habits and might be able to determine when he/she will stop. The caution here is to make sure the auctioneer sees you - even if you have to yell. I have missed some great buys because I was a hair too late. Timing is everything with this strategy.

I hope you find these three auction strategies helpful in your purchase of the salvage motorcycle of your dreams. Slightly modified these same strategies will work at an online salvage motorcycle auction. If you didn't find your dream machine this time, that's OK too. There will always be another salvage motorcycle auction in the offing and next time you will be even more prepared. Happy Bidding.

Dan Kitchel is an auctioneer and salvage motorcycle enthusiast. Check out the Salvage Motorcycle Blog for more information on how you can make money buying, fixing and selling salvage motorcycles.