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Buyer Tips

What Kind of License do You Need for Copart?

By Mike Richards Posted: 10/01/2019

To be a member of Copart, all you need to do is register. However, there is a difference between those who get free membership and those that get a license. What kind of license do you need for Copart? You need to know the difference for you to appreciate the best way to gain access to used cars. You need to find out the laws of every state. In some states, you don’t need a business license, others require a mix of licenses, while others forbid the purchase of used cars without a business license. However, there is another, cheaper way to access Copart auctions without registering directly with them. That’s by using an authorized representative, to buy your chosen vehicle on your behalf, at the price that you set. We’ll explore how.

First things first: Copart accepts two types of licenses;

Business or Operation License

Authorized dealers bidding at Copart auction have business licenses. This license expands one’s eligibility to bid for cars. Those with business licenses, like Auto Auction Mall, can place a bid in any Copart auction locations.  It is vital to note that the requirements vary from one state to another. For example, in California, you need a sales tax license and a Copart operational license with the same physical address. Tax exemption forms are also required.

If you would like to get a business or dealer license, you need to need more cars than an average used car buyer does. If you buy a couple of cars occasionally, getting this license may not be worth the time, effort or expense. You still get a great deal by going through a registered dealer.


Even though it is easy to assume that anyone can buy a car with a salvage title, this is not entirely true. A car with a salvage title has limitations on who can buy it. This is because this car is not considered roadworthy. Only those with a license can bid for these cars.

Sales Tax License

The Sales Tax License is required by all businesses that collect taxes on behalf of the state every time they make a sale. It is crucial for you to find out the sales tax laws of every state in which you participate in Copart auctions. Some of these states demand that you submit a sales tax license before you purchase used cars at auctions.

Further Reading

Basic Membership

When joining Copart as an individual, you are required to register for an account. This account allows you to bid for one car at a time. When you register as an individual, your bid limit is restricted to $1000, and you can only bid on vehicles which don’t require a business license. If, however, you are interested in a car that costs more than $1000, you are expected to deposit 10% the amount you intend to bid. For example, if you will be bidding $4000, you are required to deposit $400.

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The downside of an individual basic account is you cannot join multiple auctions at the same time. This type of account is only ideal if you are buying one car. If you are in the business of flipping cars, this account limits how quickly you can access the cars on auction since you only get to bid one car at a time.

When registering, you are required to identify yourself. You can either use a valid Driver’s license or passport.

Even though Copart has an inventory of cars that can be viewed and bought without a business license, there are so many restrictions. You will miss out on some great deals that a business license would give you access to. If you want to get the best, it would be great to go through an authorized dealer.

However – There is Another Way!

How to Buy a Car from Copart through an Authorized Dealer

Private buyers have long been locked out of buying used cars from auctions open to dealers only. This has significantly limited the vehicles available to individual buyers. However, Copart offers used car buyers the chance to purchase vehicles at a competitive price through authorized dealers, like Auto Auction Mall. Although you are required to pay a fee to access the vehicles that are only available to dealers, the price of the cars makes it worthwhile.

Contact the Third-Party Proxy

If you are a private buyer interested in seeing the cars that are only available to dealers, you need to find Copart representatives. Although Copart also sells cars directly to private buyers, there are limitations which you will not have when buying a vehicle through a Copart representative.

Even if you are buying a used car, you can still get a great car. This is only possible if you have an extensive collection of cars from which to choose. When you approach Copart as a private buyer, you will only have access to a limited number of vehicles. You may also not get the favorable prices available to dealers.

When you and Auto Auction Mall, an authorized Copart dealer, agree on the fee, you will gain access to thousands of cars. Since all the information is available online, you can take as much time as you would like, and at your convenience.

The dealer will be at hand in case you have any questions, or if you need help in finding the most ideal vehicle. The dealer will assist you from the moment you make contact. If you have questions about bidding and shipping, you have a partner at hand.

Find Out all the Associated Costs

If you are working with a tight budget, you need to find out what other expenses you should expect to incur before bidding on a car. This will guide your search for the car that is right for you, especially if you have not zeroed in on any specific model. Some of the fees you need to know about include transportation fees, auction fees, and third-party proxy charges.

Auto Auction Mal charges a flat rate of $75 for documentation. Buying a car involves several legal document transfers. This fee covers all the costs associated with the transfer of documents. Auto Auction Mall also has standard auction fees, depending on the cost of the car. If you buy a car that costs between $0 and $3,499, the fee is $249. Cars that cost $3,500 and above attract a fee of $299.

Copart has two main payment schedules, A and B. Schedule A is secure payment methods, while schedule B caters for both secure and unsecure payments. Auto Auction Mall uses schedule B because it understands buyers have their own preferences when it comes to how they pay for the cars.

Even with all these costs, you will save time and money buying a car from Copart through a dealer. The dealer will save you time since they can help you choose a car to suit your circumstances. For example, if you would like a fuel-efficient vehicle with a reasonably powerful engine, a dealer will give suggestions you may not have considered.


Bidding for the Vehicles

If you are using a Copart representative, you need to note that the dealer will be involved in the bidding process. This is because only the dealer is allowed to bid on most of the cars directly. You only need to inform the dealer of the maximum amount you are willing to spend on the vehicle. Since the dealer has been bidding on Copart, they have the experience and will provide guidance where necessary.

Copart is one of the largest auctions in the world, in over 190 locations. It is trusted by thousands of car sellers, dealerships, and private buyers. The introduction of representatives has allowed Copart to make used cars more accessible to individual buyers.

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