When the ‘Salvage Car Auction’ went off the rails

Auctions are often the last stop for many Americans who want to save their home or car.

But not all of them are for sale.

The auction house Salvage Car is facing some tough times as it struggles to keep up with demand for cars, including some that are no longer available for sale, according to a letter sent by Salvage’s president to employees last week. 

Auction house officials are trying to cut costs by limiting the number of cars being offered at any one time, cutting inventory and closing some auction houses, the letter said.

It also said the company will limit its inventory and stop offering certain types of cars for sale during its next auction. 

“We want to be sure that our employees and contractors understand the consequences of their actions, and that we do everything in our power to make sure that this does not happen again,” the letter from Salvage founder and CEO Mike DeSantis said.

“As a result of the past three months of hard decisions, we have decided to close Salvage Cars, and will focus our efforts on the automotive sector and on improving our services.” 

Sellers at the auction house have said the auction was “not sustainable,” and that some of the cars they’ve sold were sold by dealerships that had no incentive to buy the cars, which were later returned. 

In a statement, Salvage CEO Michael DeSantas said that while the company has taken some “significant action,” the company is “not out of business” and “will continue to operate in an orderly fashion.” 

“The company is committed to supporting our employees, contractors and suppliers by remaining open to all sales,” DeSanto said. 

The auction house’s auctioning process is based on the assumption that a car is sold for less than the price it would cost to buy it, the company said in a statement. 

While the letter did not specify what the companies’ plans were, one person familiar with the company’s operations said that some buyers have been told to “stop working on the car, and instead work on their cars.”

The person spoke on condition of anonymity because they were not authorized to speak publicly about the situation. 

Santis said he is trying to make Salvage the best car buying operation in the industry, including offering a $1,000 deposit for buyers who buy cars through the company, and the company offers a $500 cash rebate to buyers who choose to go with the auction.

That means the company can help offset the costs of having to pay a dealer or auction house to buy a car, he said.

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