The basic function of a salvage pool is to bring buyer and seller together. This concept presented a one-location convenience for the buyer and a competitive bidding environment resulting in a better recovery value for the Insurance Industry; an equation of sort.

Competition among salvage pools has presented some interesting offers for the Insurance Industry. Insurance companies have been afforded the opportunity to pick and choose the best offer, which may result in a potential liability.

It is apparent that added or increased fees to the buyer are financing these offers. This practice shifts the burden to the buyers as they are bearing more of the cost in an effort to attract insurance companies. We see the buyers adjusting their bids accordingly. It remains to be seen what level this reaction will attain. We believe the equation between buyer and seller must be respected for the long-term benefit of all participants in the Salvage Industry.