Sometimes when a service provider develops new technologies or processes, the firm must make a host of adjustments between a pilot program and when the solution or offering is officially launched into the market.
For IAA’s newest offering that germinated through a partnership with SpinCar, IAA chief executive officer and president John Kett told Auto Remarketing that the need to make a host of changes after a pilot wasn’t necessary for what the company says is the salvage auction industry’s first 360-degree walk-around digital experience.
On Thursday afternoon, IAA announced the introduction of IAA 360 View. Powered by SpinCar’s virtual photo imagery technology, IAA 360 View can provide online vehicle buyers with a 360-degree viewing experience for both the vehicle exterior and interior.
The technology was developed based on extensive buyer research coupled with collaboration with SpinCar at the IAA Engine House innovation center located at Chicago’s 1871. IAA 360 View can allow the buyer to rotate an image providing an interactive visual of a vehicle’s interior and exterior similar to physically walking around the vehicle.
During a conversation with Auto Remarketing, Kett recollected first being introduced to the team at SpinCar and its offerings.
“From the first time we met, we could definitely see the potential to use their technology in IAA and our industry, which had not been done before,” Kett said. “We like the technology. We like the way it was built; the simplicity for us to use it. For all of those factors, it’s been a great partnership.
“For us, we’ve had a long history of providing strong imagery to our buyers because that’s the primary way we market our vehicles through our web portal,” he continued. “To adopt the technology SpinCar developed, it did take some operational changes and some investment in technology to really begin to deploy it. We piloted it in a couple of branches to work out some of the operational details we needed to change.”
In that measured pilot, IAA highlighted the photo imagery technology resulted in higher selling prices, ranging from $300 to $600 on average, per vehicle, when compared to the control group. The company stressed that results were dependent on age, condition and geography.
In addition, IAA pointed out the pilot showed increased buyer confidence and additional bidding activity.
“Once we got down the process, then it was just a matter of rolling it out and training across our locations,” Kett said.
“With the way (SpinCar) built it, the way we were able to access the data to be able to display, it was pretty straightforward,” he continued. “Operationally, it was a change for us to prepare our vehicles for sale. We had to add a process and build it into our flow. It was working out the details to make sure we stayed efficient and effective in capturing the 360 view.”
Currently, IAA 360 View is offered in all IAA U.S. branches for vehicles 11 years and newer.
The company noted that the technology’s benefits include:
—For vehicle buyers, IAA 360 View can offer an enhanced vehicle research, bidding and buying experience. Buyers can spin the image in a complete circle to fully view the exterior and a panorama of the vehicle interior. They can also zoom in on critical areas of the vehicle for additional detail and high-resolution views.
—For vehicle sellers, the technology can provide a more accurate visual and improved merchandising of their assets, resulting in additional bids and higher returns.
Along with salvage units, Kett sees IAA 360 View as being beneficial to any commercial or dealer consignment vehicles that the company might remarket, too.
“There’s really no limit for any vehicle we sell if we feel that it’s going to add value to use this technology,” he said.
As advanced as IAA 360 View might be, Kett emphasized how important the company’s human capital and brick and mortar resources remain to the company’s fortunes.
“Our locations are critical to the service we deliver for our sellers and buyers,” he said. “Sellers require a lot of us and we need to have property where vehicles are at, so to speak, so we can get them picked up and into our protective custody as quickly as we can.
“From a buyer perspective, a convenience standpoint of having vehicles where they are so they can access and minimize transportation and expense,” he continued. “We need to have those physical facilities. It’s absolutely critical to our business, and I believe it will remain so."
Kett then added, “IAA 360 View is a dramatic improvement over what we were doing before, which was taking high-quality, high-resolution still images. We’re dramatically improving that experience and using the people who have been doing it for us all along.”
More information can be found at https://iaa-auctions.com/introducing-iaa-360-view/.
Discussing IAA’s Thursday announcement that it has opened its Templeton, Mass., facility, the company’s chief executive officer and president John Kett said New England continues to be an important market for IAA.
“This branch, along with the seven others in and around Boston, support our growth strategy in this major market,” Kett said in a news release. “This new facility is one of the latest investments we continue to make up and down the Atlantic coastal region.”
IAA said that the IAA Templeton site — located at 223 Baldwinville Road in Templeton — includes 55 gross acres of land. IAA Templeton, the company’s third branch in Massachusetts and its eighth branch within a 100-mile radius of Boston, will support strong customer demand in Massachusetts and New England overall, according to IAA.
The company added that the site also supports inventory growth in that area.
Preview days are Thursdays from noon to 4 p.m. ET, with sales days taking place Fridays starting at 1 p.m. ET.
Vehicle marketplace IAA says the expansion of its McAllen, Texas, branch doubles the branch’s capacity, in part to further manage potential volume that comes from catastrophic weather events in the area.
IAA and Copart announced expansions on Tuesday, as Copart said its addition of 35 acres to its existing Memphis, Tenn., 46-acre facility provides the company “with further capacity to serve Tennessee,” said Copart chief executive officer Jay Adair in a news release.
Copart said the expansion of the Memphis location means additional opportunities for auto enthusiasts, rebuilders and other buyers who will see more vehicles offered at the location that is now 81 acres and hosts vehicle auctions every Thursday at noon central time.
Copart said eligible buyers can use its VB3 online auction platform to bid on available inventory. They can also use the Copart mobile app, or during normal business hours they can bid at the location’s kiosks.
IAA said its expansion investment in its McAllen, Texas branch accommodates increased customer volume demands along with catastrophic weather event volume. The branch holds preview days on Mondays and sale days on Tuesdays.
“This expansion brings needed capacity to a branch which sits on the Gulf of Mexico, an area particularly prone to catastrophic weather events,” IAA chief executive officer and president John Kett said in a news release. “We remain diligent and consistent in making strategic investments to meet our customers’ needs and to provide a better experience for them.”
“This expansion will greatly increase our operational capabilities and readiness for increased volume in the Texas Gulf Coast region,” said IAA senior vice president, U.S. branch operations Scott Guenther.
A new Hartford, Conn., location for Copart marks the second Connecticut site for the global online vehicle auction company.
The location, formerly named Hartford-Springfield Auto Auction, provides capacity for Copart’s continuing volume growth in the region, and it means more convenience for the company’s buyers in the area, Copart chief executive officer Jay Adair said in a news release.
Copart, which describes itself as a “leading innovator in the salvage industry,” said it is proud to bring its business and jobs to one of the oldest cities in the country.
“We are excited to provide our customers with the best service in the industry, made possible by our people, processes and technology,” said general manager Brian Phillips.
Copart hosts online auctions at its Hartford Springfield location every Thursday at 9 a.m. CT, and the next auction is planned for July 18. Eligible buyers, using computers, smartphones and tablets, can bid on current inventory. Or, they can bid via the location’s available kiosks.
The planned spin-off of the Insurance Auto Auctions business from KAR Auction Services reached what KAR’s chief executive called “an important milestone” this week.
The Internal Revenue Service provided KAR a favorable private letter ruling regarding the tax-free status of the IAA spin-off, KAR said in a news release Monday.
“This favorable tax ruling is an important milestone towards completing the spin-off,” KAR chairman and CEO Jim Hallett said in the release. “We are pleased to continue moving forward with this transaction which will enhance the success of each business by creating two companies that will be leaders in their respective markets.”
There are several conditions to which the spin-off remains subject. That includes the effectiveness of IAA's Registration Statement on Form 10 filed with the U.S. Securities and Exchange Commission, as amended; the execution of ancillary agreements related to the spin-off; and final approval from the KAR board of directors.
The spin-off was first announced in February 2018.
Copart’s addition of 18 acres to its location near Austin, Texas, is a move that the company says addresses its “substantial growth” in business for that area.
The property — at 8725 N Interstate 35 in New Braunfels, Texas — is historically significant for the global online vehicle auction company. Copart purchased it in 1999. In the company's early years, the property served most of south Texas, including San Antonio, Waco and Corpus Christi. Since then, Copart has seen major growth in the region.
“This is an important achievement for Copart, given the increased demands from our buyers and sellers in Texas,” Copart chief executive officer Jay Adair said in a news release.
Adair added, “We are thrilled to grow with our customers and the economy in the state of Texas, also home for our global headquarters.”
Copart, founded in 1982, operates in more than 200 locations in 11 countries.
Auctions at the Austin location take place every Thursday at noon central time. Eligible buyers can use Copart’s proprietary online auction platform, VB3, to bid on current inventory. Or they can use the location’s kiosks during normal business hours.
“The additional 18 acres will be instrumental in helping us provide the highest level of service to our clients,” Copart Austin general manager Joshua Speck said.
It’s been a busy opening to the calendar year for Copart as the global online vehicle auction company also finished the second quarter of its 2019 fiscal year with increases in revenue, gross profit and net income.
For the fifth time since the end of January, Copart announced the opening of a new facility or an expansion of an existing operation as the company enhanced capacity at its Newburgh, N.Y., location, adding 25 acres of storage space to Copart’s existing 68 acres to meet customer capacity needs.
“We are committed to increasing our storage capacity throughout the country to meet the growing demand of our services,” Copart chief executive officer Jay Adair said. “It is a great achievement for our team to add significant vehicle storage space for online auctions at our Newburgh location.”
Copart Newburgh general manager Michael Cassata added, “We are excited to provide our clients with outstanding service levels, which the added storage space at our location helps to make possible.”
The development in Newburgh arrived after Copart opening new facilities in Mocksville, N.C., North Charleston, S.C., and Antelope, Calif., while expanding its existing site in El Paso, Texas.
Meanwhile, Copart also reported that it finished the second quarter of its 2019 fiscal year with rises in revenue, gross profit and net income.
For the three months ended Jan, 31, the company said its revenue, gross profit and net income came in at $484.9 million, $208.2 million and $131.4 million, respectively. These figures represented a year-over-year increase in:
— Revenue of $25.8 million or 5.6 percent
— Gross profit of $16.6 million or 8.7 percent
— Net income of $28.1 million or 27.2 percent
Copart also mentioned fully diluted earnings per share for the most recent quarter were $0.55 compared to $0.43 last year, an increase of 27.9 percent.
For the six-month span that ended Jan. 31, the company tabulated that revenue, gross profit and net income came in at $946.3 million, $404.1 million, and $245.5 million, respectively. These amounts constituted a year-over-year increases in:
— Revenue of $68.0 million or 7.7 percent
— Gross profit of $49.3 million or 13.9 percent
— Net income of $64.7 million or 35.8 percent
Copart added that fully diluted earnings per share for the six months were $1.01 compared to $0.75 last year, an increase of 34.7 percent.
The company went on to note that its operating results for the past three- and six-month spans were adversely affected by abnormal costs of $36.5 million and $72.3 million, respectively, incurred as a result of Hurricane Harvey. These costs included
— Temporary storage facilities
— Premiums for subhaulers
— Labor costs incurred from overtime
— Travel and lodging due to the reassignment of employees to the affected region
— Equipment lease expenses to handle the increased volume, as well as cost of vehicle sales.
Copart computed these costs, net of the associated revenues of $44.8 million and $63.4 million, respectively, generated pre-tax income for the three months ended Jan. 31 of $8.3 million and a pre-tax loss for the six months that ended Jan. 31 of $8.9 million.
The damp chill of Michigan in December didn’t prevent Insurance Auto Auctions from celebrating this week.
The business unit of KAR Auction Services opened of its new facility in Flint, Mich. The new branch is IAA’s third strategic location serving the northern Midwest market of Michigan.
The site boasts a new state of the art facility, and its 18 acres allow for future expansion.
“The new facility will help us continue to offer our best-in-class customer service and auction experience to our clients in east central Michigan,” said John Kett, chief executive officer and president of Insurance Auto Auctions.
“At IAA, we are always working to improve the customer experience, and this new facility, with the latest auction technology, allows us to upgrade the buying and selling experience for our customers who previously visited our Bay City facility,” Kett continued.
“This new location in the metropolitan area of Flint also provides more convenience for both our employees and customers,” he went on to say.
The new IAA facility in Flint replaces the IAA Great Lakes facility in Bay City, Mich. IAA Flint will host auctions on Tuesdays, with preview days held every Monday.
Dealers can visit IAAI.com for more information.
Copart is moving into Germany as fast as drivers accelerate through segments of the Autobahn.
Following location openings near Hannover, Leipzig and Mannheim in Germany, Copart announced this week that it will begin auctioning vehicles every other Friday from its new facility located at Furth, near Nurnberg, the second largest city of the German federal state of Bavaria.
This facility is Copart’s fourth location in Germany.
“With our national and international buyers asking for more locations from which they can buy used and salvage vehicles in Germany, we are proud to open this facility near Nurnberg,” said Alain Van Munster, managing director of Copart Germany. “We are proud to offer a vehicle auction platform that guarantees buyers access to salvage vehicles in Germany.”
The new location will begin its biweekly vehicle auctions 12 p.m. Central European Time (6 a.m. Central Daylight Time) on Friday. Eligible buyers can join auctions and bid on inventory on Copart.de or through the Copart Mobile App for iOS and Android devices.
“We are committed to transforming the experience in Germany for salvage vehicle buyers and policy-holders alike,” said Nigel Paget, Copart chief executive officer for Europe and the Middle East.
Copart chief executive officer Jay Adair added, “These additional locations give us the network we need to deliver a superior experience across Germany through our people, processes and technology.”
To learn more about Copart Germany, visit www.copart.de.
No, that’s not a typo in the headline of this report.
On Monday, Copart announced that it has opened its third location in Germany. The facility is located at Bruchmühlbach-Miesau, near Mannheim, Germany.
Copart indicated the first vehicle auction at the new Mannheim location will be on Tuesday.
“Our buyers’ appetite for vehicles in Germany is huge. I am excited that we’re opening a location near Mannheim,” said Alain Van Munster, managing director of Copart Germany.
“It will be an important asset in supporting the Copart business model in Germany, increasing proximity to certain buyers, as well as reducing our logistics costs,” Van Munster continued.
Eligible buyers can join auctions and bid on inventory through the Copart.de website or via the Copart Mobile App for iOS and Android devices.
“With this third Germany location in Mannheim, alongside facilities already established near Hannover and Leipzig, Germany, the U.K., Ireland, Spain and Finland, Copart is truly extending its strong platform in Western Europe,” said Nigel Paget, the company’s chief executive officer for Europe and the Middle East.
Copart chief executive officer Jay Adair hinted about what’s to come for the company in Germany.
“We are committed to building our network of locations in Germany, and we look forward to announcing additional locations before year end,” said. “I am proud of the Copart team and their effort to make Copart the number one solution for salvage in Germany.”
To learn more about Copart Germany, visit www.copart.de/en/.
