happens here quite a bit, near my house as there is a major auction house nearby. these are usually insurance totalled cars that they will sell on a regular basis via auction. the buyers will then buy multiple cars, tow them like this to their shops and repair them. most will head to states that allow 'washed' titles (Texas for example).
how do i know this: few years back, our company was doing a new project at the insurance total lot (i didn't know this place existed in town), but all the major insurance companies have their cars brought here. every so often, they have a 'sale' and all the mom & pop corner dealers will show up and buy these up and repair them. heck, while we were there that day working, a group had purchased two jeeps, one wrecked in the front, the other wrecked in the rear. Insurance guy in the office told us that that car will end up as one and sold as a "low mileage late model". depending on the state, it will show prior salvage title or new title issued.
we were amazed at this business. insurance guys told us, gotta make some money back on these vehicles. remember seeing a less than month old Tahoe, engine fire. rolled it up on the flatbed...and off it went. to get new engine..and paint job. ever since then, i've been very wary of any of these mom and pop dealerships - especially the ones that sell online nowadays (another tip from the insurance guys). run from these places.