Processing & reselling salvaged vehicles has been major part of Copart Biz.
Is leader if not dominant source of used parts & totaled vehicles in U.S. & globally.
Innovative Biz model made founders billionaires & Stock market favorite.
Now to see how damaged EVs & AVs impact the supply chain & market model.
A salvaged vehicle is one that has enough damage to be written off.
Too much damages to economically & mechanically be repaired.
The sale of the damaged vehicle is done entirely online by Copart.
Copart lots have remained open during pandemic lockdowns
Copart buys the damaged vehicle, moves to lot, & then auctions online.
Some damaged vehicles become drive-able when sold overseas or other countries.
Insurance companies are increasingly selling damaged vehicles to salvage.
As replacing hi tech equipment in damaged vehicles makes fixing expensive.
Has refurbished facilities & added new online virtual QR Code queues
“If you have a front end collision and you’ve got an automated driving system, the repair cost can be up to 5 or 5 times to fix a bumper with sensors.”
—Gary Prestopino, Analyst, Barrington Research
“Car are becoming like tv sets—wear out or damaged throw them away”
Copart Net Income was $700 M in Fiscal 2020 on $2B Sales.
Copart has 234 lots in the U.S.
Somewhere between 9% & 14% of crashed vehicles are totaled every year.
There are 274 M vehicles in the U.S.
Copart stock jumped 150% in January: Generated more profits than 2019
Forbes Article “ Junkyard Billionaires”, December 2020 Issue – https://www.forbes.com/sites/giacomotognini/2020/11/16/how-to-make-a-billion-dollars-junkyard-cars-copart-salvage/?sh=4fa91e7c7498
Jay Adair- CEO – Worth $ 1.4 B
Willis Johnson – Worth $1.1B