Dan Oscarson - Head of Global Buyer Development
Taking on the industry’s duopoly and “out-of-control” auction fees
Salvato Auctions will debut this summer auctioning 100% insurance vehicles with 20% lower auction fees compared to Copart and IAA. By changing the model and modernizing the auction experience, Salvato is removing friction and reducing costs at every step for buyers.
Salvato Auctions is led by industry veterans committed to building a smarter approach to salvage car auctions for both buyers and sellers. In this Salvato Leadership Spotlight, 30-year industry veteran Dan Oscarson, formerly Vice President of Global Market Development at IAA and most recently Chief Operating Officer at Marhaba Auctions in the United Arab Emirates (UAE), will share why he believes Salvato Auctions will be a game changing source for vehicles to buyers in the United States and abroad. He comes to Salvato Auctions with what is certainly a unique perspective, and a thorough understanding of both domestic and foreign-based car buyers’ needs. Let’s get right to it and ask our questions.
Q: Salvato Auctions is taking a bold step in competing against two well-established salvage auctions. Why do you think Salvato will be successful?
A: The Copart and IAA duopoly has existed for decades, stifling innovation and the benefits of competition. Buyers and sellers have few choices—but times are changing. Now, salvage auctions occur nearly exclusively online, eliminating the need for auctions to have large tracts of land to pool and sell vehicles.
Salvato is entering the market as a technology company focused on creating better experiences for both buyers and sellers. Our model uses decentralized yards, selling vehicles where they sit instead of storing them in a centralized location. This approach enables us to bring vehicles to market faster and prevent incremental damage by eliminating unnecessary vehicle movement. By changing the model, Salvato will save buyers at least 20% on auction fees.
Q: How have your 30 years of experience at IAA and recent experience at Marhaba Auctions prepared you for what you are doing at Salvato Auctions?
A: I may be a bit of a unicorn by today’s standards in the sense that I spent so much of my career at a single company (IAA), but during that time I was privileged to work in different areas including operations, marketing, and global market development. Each area exposed me to important parts of the auction process and the specific needs of car buyers both domestically and abroad. I’ve met with and spoken to buyers all over the country and around the world to understand their specific needs first-hand. I’m confident that the Salvato Auctions business model with its time and cost savings will better meet the needs of buyers everywhere.
Q: Why is now the right time for Salvato Auctions to launch?
A: Auction fees at the two biggest auctions are out of control. Copart and IAA continue to increase fees on buyers year over year without much additional value or benefit. While it’s true that operating costs for those big auctions are also increasing, the operating costs themselves are part of the problem. Salvato approaches that problem differently. We eliminated the dated practice of centralized storage facilities by selling cars where they sit, reducing operating costs, and passing those savings along to buyers in the form of lower auction fees. With our innovative new operating model, buyers will save at least 20% on auction fees on every vehicle at every auction. Buyer registration is also free, and there is no annual membership fee. We’re focused on creating savings that will positively impact our buyers’ bottom line.
Q: What innovations and technology help Salvato sell faster?
A: Salvato can transfer titles as fast as the same day using digital titling tools. Many states are adopting digital titles and our ability to transfer titles faster brings cars to market sooner and eliminates the need to store cars at expensive holding yards for extended periods.
Q: How will buyers specifically benefit from Salvato Auctions’ approach to selling insurance cars?
A: Our buyer fees are at least 20% lower for buyers who qualify as ‘high-volume’ at Copart & IAA today - and as much as 30% to 40% lower for ‘low-volume’ buyers. In addition, we offer free buyer registration for individuals and businesses, no annual membership fee, and free additional bidder accounts for licensed businesses. Our straightforward approach is appealing to buyers who want a simple and cost-effective way to acquire the vehicles they need.
Q: What can buyers do to support your efforts to save them time and money and expand the Salvato Auctions inventory?
A: Our success is driven by selling cars at a fair price. Buyers can support us by checking our inventory, bidding on our cars, and saving money on auction fees. Insurance companies will see the results and reward us with more of their vehicles. As our inventory grows, buyers will have more opportunities to save at least 20% or more on auction fees.
