NEW INTERVIEW: Copart Germany
Short analysis on why Germany could lead to an opportunity as big as the US market
$CPRT
inpractise.com/articles/cprt-…
Short analysis on why Germany could lead to an opportunity as big as the US market
$CPRT
inpractise.com/articles/cprt-…
In Germany, unlike the US, insurance companies cannot take ownership of wrecked vehicles
This leads to a few core differences between Germany and US salvage:
1) Insurers pay claimant salvage value BUT leaves them to SELL the car themselves
1) Insurers pay claimant salvage value BUT leaves them to SELL the car themselves
2) Auctions are 'hidden'; buyers can't view winning bids
3) Insurers put the vehicles on all 3 major auction companies = only 10% of winning bids actually receive the car
Copart is circumventing the regulation in Germany
$cprt pays the PAV directly to the owner, takes ownership of vehicle, sells it via global auction, and shares the profits with insurer above the original salvage value
$cprt pays the PAV directly to the owner, takes ownership of vehicle, sells it via global auction, and shares the profits with insurer above the original salvage value
Claimant wins: gets paid full PAV in 1 day
Insurer wins: shares the profit with Copart above the assessed salvage value
Buyer wins: less working capital tied up, receives the car when they win the auction, lower transport cost
Insurer wins: shares the profit with Copart above the assessed salvage value
Buyer wins: less working capital tied up, receives the car when they win the auction, lower transport cost
Still a long way to go to fully onboard the insurers, but Germany looks far more inefficient than US and can open the door for EU-wide expansion
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