Copart announced it recently opened a new location in Alton, Ill., the company’s fifth in Illinois.
"The opening of this location in southern Illinois addresses our increasing volume, which has been driven by both organic growth in the industry and market wins," Jay Adair, chief executive officer of Copart, said in a news release. "Furthermore, it gives us the capacity for continued expansion in the St. Louis region."
The southern Illinois location hosts online sales on Wednesdays at noon.
Vehicles may be previewed in person Monday through Friday between 8:00 a.m. and 5:00 p.m.
The facility is located at 99 Racehorse Drive, and the general manager is Andrew Kaufman.
Auctions are hosted on Copart.com. More Information about the new location's auctions can be found here.
Additionally, select Copart Midwest locations have served as safe environments for fire department training.
Local fire departments, law enforcement and similar government agencies are encouraged to contact the general manager of any Copart location for information about conducting training at Copart.
Copart recently expanded its Chicago North location where sales occur at noon every Thursday.
“The Chicago North expansion is a great addition to our network in the Chicago area where we currently have four locations serving our members and sellers,” Copart chief executive officer Jay Adair said. "This land allows the capacity to continue growing in the Chicago market.”
Copart said it practices good corporate citizenship and prides itself on giving back to the local communities in which it does business. Throughout the Midwest, Copart said its locations have given back to its communities.
Copart Des Moines in Iowa showed its support for both their fellow military veterans at Copart and all American veterans through their participation in the 2016 Des Moines Ruck. Copart Indianapolis hosted its local Indianapolis fire department and provided a safe training environment for the department’s three-day training.
Local law enforcement agencies are encouraged to contact the general manager at the Copart Chicago North location to learn more about conducting training at Copart.
In addition to supporting local agencies and veteran services, Copart supports numerous local, regional and national charities. To learn more, visit TeamCopart.com.
On Wednesday, Copart announced the addition of its first location in Wyoming and fourth in Colorado, along with the expansion of its Springfield, Mo., location.
"We have been expanding and adding new locations throughout the United States this year, and we are pleased to add Wyoming as our 46th state in which we are operating," Copart chief executive officer, Jay Adair, said in a news release.
"Our land and ability to accommodate inventory is one of the many things that sets Copart apart," Adair continued. "Our sellers depend on us to have land available for their vehicles, and our expansions and new locations exhibit our ability to provide our sellers with an unmatched experience."
The company’s two new locations are in Casper, Wyo. and Littleton, Colo.
Last year, Copart reported the opening of 10 new locations and the expansion of 13 existing locations nationwide.
Copart also grew internationally after developing operations in the Republic of Ireland, Spain and Germany in 2016.
"We achieved a tremendous milestone last year when we eclipsed an annual sales rate in excess of two million vehicles sold, and these new locations and expansions allow us to accommodate our growing inventory," said Adair.
With a host of rivers in places such as North Carolina cresting at record levels, Hurricane Matthew has floodwaters rising throughout the Southeast, wreaking havoc in communities, damaging homes, businesses and vehicles.
With the American Red Cross’ previous announcement that the this year’s flooding in Louisiana was the worst U.S. disaster since Hurricane Sandy in 2013, many property owners are concerned that Hurricane Matthew will further compound the issue of flood-damaged vehicles potentially going down the lanes or ending up in inventory.
“It’s important for used-car shoppers to know how to spot flood damage no matter where they live, because these cars can end up on a dealer lot anywhere, especially this year,” said Alliance Inspection Management (AiM) regional director Carl Sullivan, who has more than 32 years of vehicle inspection experience.
“A car that’s been in a flood, with the engine submerged for any length of time, will never be the same,” Sullivan continued.
Many states issue a flood or salvage title to a vehicle that has been submerged or flood-damaged, information which can be found on a vehicle history report.
However, some sellers may try to unload their vehicle before a flood or salvage title appears on a vehicle’s history report. To combat this possibility, Sullivan offered these warning signs to help identify flood damage in a vehicle:
• A musty odor in the vehicle, which may be from moldy carpeting or padding. If possible, pull up the carpeting to see how far water may have risen in the vehicle, and also if any moisture remains
• Mud in the seat belt tracks or seat belt tensioners
• Water or condensation in the headlights or taillights. Sullivan notes this could also be due to an accident, but water in these areas could also be a tip-off to flood-related problems
• Water in the spare tire well in a vehicle’s trunk. “If we see water in the spare tire well, it leads us to look a little further,” said Sullivan
• A sagging headliner in the interior, particularly on a late-model vehicle
• Look under the seats. “I found two fish under a back seat once,” said Sullivan, who was inspecting cars in Florida at the time. “That was a pretty sure sign the car had been flooded.”
• Corrosion in the vehicle’s undercarriage, such as on brake lines or around the fuel tank. When corrosion appears near the top of the springs or shock towers are corroded, these are signs of flood-related damage.
“A car’s engine, electronics, fuel system, airbags and brakes are all extremely susceptible to flood water,” Sullivan said. “It’s extremely important to find any water damage before you invest your money in a used car, and a professional inspection will find flood damage no matter how a seller tries to hide it.”
AiM and its team of 1200-plus full-time inspectors review vehicles throughout the U.S., providing detailed condition reports for clients ranging from consumers, dealers and auctions to manufacturers. AiM’s independent, 150-point inspection can identify problems on vehicles for buyers and sellers. The company has instructed its inspectors to pay particular attention to flood damage due to this year’s severe weather.
AiM also is a platinum sponsor of this year’s National Remarketing Conference/NAAA Convention, which is set for Nov. 16-18 at the Red Rock Resort and Casino in Las Vegas. It’s all part of Used Car Week that also includes the CPO Forum — America’s Used Car Conference, the SubPrime Forum and the Re3 Conference.
Used Car Week brings together dealers, auction executives, finance companies, service providers and other top industry experts for networking and more. A $200 early bird discount expires on Friday.
More details can be found at www.usedcarweek.biz.
Insurance Auto Auctions rolled out its newest tool on Tuesday — IAA Loss Advisor — which the business unit of KAR Auction Services highlighted as a solution that can help insurance claims staff.
The company explained IAA Loss Advisor can quickly generate an early total loss recommendation based on information insurance personnel provide regarding the post-accident condition of the vehicle combined with the ACV (actual cash value) and IAA salvage vehicle market value data.
IAA Loss Advisor is the latest advancement in the IAA Total Loss Solutions, the company’s suite of products that ultimately leads to increased management of costs as well as an enhancement in customer satisfaction and retention.
“The Loss Advisor tool uses insurance company and IAA data to allow for a significant enhancement in the accuracy of the evaluation typically given by existing tools regarding early total loss prediction,” said Pat Walsh, senior vice president of business development at IAA. “Because of this, Loss Advisor decreases storage and advance charges, reduces the cycle time and enhances the customer’s satisfaction.”
Insurance Auto Auctions chief executive officer and president John Kett added, “By implementing the Loss Advisor tool, insurers can instill a greater sense of confidence in customers going through the claims process, which leads to increased policyholder fulfillment and retention.
“This development complements the existing features of IAA Total Loss Solutions, which serve to further exhibit IAA's dedication towards being the leading industry expert providing a seamless suite of technologies that increases the effectiveness of the total loss claims process,” Kett went on to say.
The National Weather Service Office in New Orleans reported that more than 10 of its recording stations in southern Louisiana counted at least 10 inches of rain during a 48-hour span this past weekend, with one area approaching 22 inches. The torrential downpours happened not far from where Hurricane Katrina deluged the Gulf Coast 11 years ago this month.
With a total of 20 parishes having been declared major disasters by federal officials, hundreds of vehicles likely are impacted by floodwaters. But whether it’s this latest natural disaster in the Bayou or what might be approaching your dealership, National Auto Auction Association president Mike Browning pointed out the protocol and technology now in place to keep flood-damaged units from being “washed” and landing in your inventory.
“In the wake of disasters like Hurricane Katrina and more recently Hurricane Sandy, salvage laws have been put into effect to give consumers a way to know whether or not a vehicle has suffered flood damage at some point in its history,” said Browning, who also is the general manager of Manheim San Antonio.
“Additionally, NAAA has adopted policies requiring that titles are correctly branded to indicate a vehicle’s flood history,” Browning continued when reached through Manheim’s public relations department this week.
“But I’d say the biggest hurdle we’ve worked hard to overcome as an industry is properly training inspectors to identify flood damage,” he went on to say. “In short, the training simply wasn’t nearly as comprehensive back then. Now inspectors have a greater understanding of what the indicators of flood damage are, and frankly it’s relatively unheard of for them to miss it.”
That emphasis by Browning should be a welcomed sentiment to veteran used-car managers who might have had to navigate the challenges left behind by disasters such as Katrina and storms going back much further. Perhaps now, the only thing “washed” in the lanes is a vehicle that might have seen a detail shop before going over the block.
“Vehicle history reports from reliable services like AutoCheck has made the practice of title washing much more difficult and enables auctions to disclose any branded title before the bidding starts,” Browning said.
“By offering increased visibility to accurate vehicle data, a dealer’s risk of buying a vehicle with undetected problems is greatly reduced,” he went on to say.
Browning, along with other NAAA leaders as well as executives from Manheim and other wholesale players, will be converging at Used Car Week, which is set for Nov. 14-18 at the Red Rock Resort and Casino in Las Vegas. For more details about all of the NAAA and Used Car Week events in store, go to www.usedcarweek.biz.
Insurance Auto Auctions, a business unit of KAR Auction Services, announced a 10-acre expansion of its Culpeper, Va., facility.
The now 32-acre facility highlights IAA's strategic expansion in the growing industry. The company explained the expansion in Culpeper will allow customers to select from a larger inventory of vehicles with increased convenience, while also providing more flexibility and quality service to buyers and sellers. As part of IAA’s continued commitment to better serving its customers, the Culpeper site expansion incorporates many enhanced features, including a new garage and motorcycle storage area.
“The Culpeper expansion represents an important step in our efforts to expand our operations to better serve our loyal base of buyers and sellers,” John Kett, IAA president and chief executive officer, said in a news release. “The thriving marketplace enables us to effectively extend the company’s growing footprint and influence in the industry, with more than 170 locations in North America.”
The branch, one of six in Virginia, is at 15201 Review Road in Culpeper. Auctions will begin at 9 a.m. ET on Tuesdays.
KAR Auction Services business unit Insurance Auto Auctions rolled out its newest offering on Tuesday, something the salvage auction company is calling IAA Express Notary.
Officials highlighted this service allows for the electronic assignment of title documents in an attempt to shorten the cycle time significantly for total loss settlements. This tool is the newest development in the IAA Total Loss Solutions suite of products that can directly allow for more management of costs, while simultaneously boosting customer satisfaction and retention.
Carriers that choose Express Notary as their document delivery service can tap into a national network of mobile notaries who will travel directly to the vehicle owner and execute documents on the spot. The electronic assignment ability can allow the notary requirement to be satisfied at a faster rate, leading to an overall enhancement of the customer experience.
“The mobile aspect of Express Notary markedly reduces the time typically required for a total loss settlement to be processed,” said Pat Walsh, senior vice president of business development at IAA. “Because the notary can meet the vehicle owner at a place and time of their choosing, rather than requiring the vehicle owner to execute the entire process on their own, the results are distinctively more efficient and more accurate, giving customers a greater sense of relief.”
In addition, improved cycle time can lead to a reduction in costs, as insurance carriers are able to save on vehicle rental fees and to better allocate employee bandwidth.
“By deploying mobile notaries, insurance carriers remove the step in the claims process that customers find most inconvenient, which in turn leads to increased policyholder satisfaction and retention,” IAA chief executive officer and president John Kett said.
“Every feature added to IAA Total Loss Solutions further demonstrates IAA’s dedication to consistently innovating as an industry leader to provide a seamless suite of technologies that streamline the total loss claims process for our customers and theirs,” Kett went on to say.
ADESA Boston raises more than $55,000 for JDRF
In other KAR news, fellow business unit ADESA announced that its ADESA Boston location has raised more than $55,000 for JDRF so far during the auction’s annual charity drive.
The main event of the charity drive was the auction’s 16th annual Classic Car and Motorcycle Show in May. This event raised more than $38,000 through a live auction, show entry fees and sponsorships.
“The success of this annual event is astounding,” ADESA Boston general manager Jack Neshe said. “Thanks to tremendous generosity from our employees, our customers, local businesses and law enforcement agencies, as well as the community, we’ve been able to support the important research that JDRF funds to cure, treat and prevent Type 1 diabetes.”
More than 50 motorcycles and 180 cars were on display. First-, second- and third-place trophies were awarded by a panel of judges in both the car and the motorcycle categories. Everyone was eligible to vote for the People’s Choice trophy, which went to auctioneer Mike Chambers’ 1975 Volkswagen camper van.
During the past 16 years, the auction’s annual charity drive has raised more than $600,000 for children’s charities including JDRF, a leading advocacy group for people with Type 1 diabetes. The drive runs through June 30.
“This event has become a favorite in the community, and we look forward to hosting it every year,” Neshe said. “The classic cars and motorcycles draw fans back year after year.”
KAR family generates $27,500 for NIADA Foundation
When the bidding ended in the NIADA Convention’s Expo Hall, Andrew Gurowitz was the last man standing.
The owner of Fairfax Motors in Fairfax, Va. — and Virginia's reigning State Quality Dealer — placed the winning bid of $27,500 on a 2015 Chrysler 300 Limited donated by ADESA, AFC, IAA and TradeRev, members of the KAR Auction Services group of companies.
All proceeds from the auction, which was held last week during the National Independent Automobile Dealers Association Convention and Expo at The Mirage in Las Vegas, benefit the NIADA Foundation, which spearheads the association's commitment to charitable giving in addition to awarding scholarships to deserving college-bound students across the United States and providing training and educational opportunities to automobile dealers and the general public.
The vehicle, an ivory white 2015 Chrysler 300 Limited with a black leather interior, a sky-slider roof, a wood-grain dash and 9,320 miles on the odometer, will be delivered to Gurowitz free by ADESA/AFC/IAA/TradeRev.
Gurowitz prevailed in a spirited bidding battle with California's State Quality Dealer, Mehdi Chitgari of Classic Chariots in Vista, Calif.
Over the past four years, KAR company-sponsored auctions at the NIADA Convention and Expo have raised a total of $97,200 for the NIADA Foundation. During last year's event, Pennsylvania dealer Andy Gabler bid $27,500 for a 2013 Mercedes C250W.
A conference call to discuss Copart's recently released third-quarter results revealed increases in both earnings and vehicle volume.
For the three months ended April 30, revenue, gross margin and net income were $347.2 million, $157.6 million, and $74.0 million, respectively. These represent an increase in revenue of $50.1 million, or 16.9 percent; an increase in gross margin of $30.2 million, or 23.7 percent; and an increase in net income of $16.5 million, or 28.6 percent, respectively. All measures are comparisons from the same quarter of last year.
Fully diluted earnings per share for the three months were $0.64 compared to $0.44 last year, an increase of 45.5 percent.
During the call, chief financial officer Jeffrey Liaw noted that volume increases were seen across almost all major insurance carriers, attributable to increased accident rates, heightened driving activity and elevated repair rates.
Liaw touched on the effect of scrap metal prices on ASP, noting “a recent stabilization” of scrap trends, which he said had declined in the past year.
“We are still down year-over-year for the third quarter in comparison to 2015, approximately 9 percent for scrap rates for crushed car bodies, according to American Recycler. But we are still up sequentially, almost 14 percent growth for the second quarter alone,” he said.
William Franklin, executive vice president, offered some insights into volume growth in the North American salvage market — which is up 16.4 percent.
“Accident frequency was up, driven by lower fuel prices and higher unemployment trends, which is leading to increases to miles driven and average speed of travel and consequently to more frequent and more severe accidents. And we believe this trend will continue,” he said.
“At the same time, we are also seeing growth in salvage frequency,” or the rate at which cars involved in accidents are deemed an economic loss in total as opposed to viable for repair.
He suggested some possible reasons for this. First, he said, is higher repair costs, driven by industry consolidation and increasing complexity of vehicles that makes them more expensive to repair.
Second, he said, is an increase in average age of the car park, which reached 11.5 years last year and is expected to grow. “As cars age, their value declines, making it less likely they’ll be repaired.”
Franklin also referenced volume growth of 11.1 percent in the U.K. due to increases in market size and market share.
In addition, he said, U.K. volume from non-insurance sellers grew by 23 percent as dealer and direct-purchase programs grew in volume and profitability. Likewise in the U.S., Copart saw a 10.4-percent growth in volume from its non-insurance suppliers, led by increases in charity and donation cars as well as cars from dealers and brokers.
Franklin reiterated the company’s plan announced last quarter to accommodate volume growth through the opening of 15 yards within a year. During the current quarter, he said, Copart acquired five new yards, two of which were placed in service.
Responding to a question from a conference call listener, Liaw said that inventory for the quarter grew at about 20.7 percent year-over-year. He reminded that’s a global number representing physical assets.
“If you isolate the effect of weather events that we experienced in Texas, excluding the growth from that alone we still observe inventory growth of approximately 18 percent year-over-year,” he said.
Commitment to community
While strong numbers are a good thing, Auto Remarketing wanted to know a little more about the Copart’s work outside of work, as it were. We caught up with chief executive officer Jay Adair to talk more about the company’s “Copart in Your Community” initiative.
The effort is focused on four areas: Law enforcement aid, disaster relief, economic growth and environmental responsibility.
“We are tilted, if you will, toward law enforcement, fire departments and the military,” Adair said.
For example, the company last year partnered with the Brighton Fire Department outside of Denver by providing vehicles from Allstate Insurance for training of FD employees. The vehicles were brought to the training location, where they were staged in various accident scenarios over a couple of days.
Copart has done this with several departments over the last couple of years, Adair said.
“Brighton is just one example. We’ve very keen on working with local fire departments and police departments to allow them to do training exercises in our locations. I wouldn’t say that’s an outlier,” Adair said. “That’s the norm. I can’t think of a city we’re in where the police and fire aren’t partners with us.
“They take advantage of using our facilities and we’re happy to be able to do that. Police departments love to come in with police dogs and do exercises where they have to try and find somebody in the yard.”
That community service mindset is something Copart likes to instill in its employees, Adair said.
“We encourage charitable involvement,” said Adair, who sits on the board of a local hospital and chamber of commerce. “Our people are involved locally and at the corporate office in everything from their local church to preventative cancer runs — even including dog rescues. We have a lot of pet lovers in the company. We’re really across the board. We encourage our folks to be active.
“When they want to do something, like a 5K for cancer prevention, folks like me and the rest of the team will get involved in and attend those kinds of events. It’s not just putting your dollars up; you’ve got to be physically involved, personally involved.”
For the second time in about a week, Copart made a move in Colorado — this time with the expansion of its location in Brighton, which serves Denver and surrounding areas.
“This is a really big year for Copart. We just announced the opening and first online auction for our Colorado Springs location,” Copart chief executive officer Jay Adair said.
“We are always focused on providing exceptional service to our members and sellers across the globe, while accommodating the land demand that comes with our continued growth,” Adair continued.
The location serves the Denver area and is located at 1282 County Road 27 in Brighton, Colo. Online auctions are held every Tuesday and Friday at noon MDT.
“We have been serving this area since 2005, and we really enjoy meeting our local members when they come by to check out our inventory," said Donald Dadson, general manager of the Copart Denver location.
“As a longtime member of the community, we also actively work to support local law enforcement agencies and fire departments by providing them with use of our facility to conduct first responder training exercises,” Dadson added.
To find out more about Copart’s work with local agencies, including the Brighton Fire Department, go to this website.
The company operates in the United States, United Kingdom, United Arab Emirates, Bahrain, India, Sultanate of Oman, Spain, Canada, Brazil, Germany and the Republic of Ireland, linking sellers to more than 750,000 members in more than 150 countries through its multi-channel online auto auction platform.
